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Legislative Newsletter June 2016

Order no. 760/2016 of the Minister of Regional Development and Public Administration regarding the approval of the minimum aid scheme for supporting the development of microenterprises within the Regional Operational Programme 2014-2020, published in the Official Gazette, Part I, No. 416 of 2 June 2016

– The microenterprises have the possibility to obtain a non-reimbursable financing between EUR 25,000 and 200,000;

– The maximum amount of the non-reimbursable financing represents 90% of the eligible value of the project and the beneficiary shall bear 10% of the project.

Order no. 936/2016of the Minister of Labour, Family, Social Protection and Elderly regarding the modification and amendment of the Classification of Occupations in Romania, approved by Order no. 1.832/856/2011of the Ministry of Labour, Family and Social Protection and of the President of the National Institute of Statistics, published in the Official Gazette, Part I, No. 421 of 3 June 2016

– Thirteen new occupations have been introduced, such as chef aid, composer, mechanical officer, electrical officer.

Law no. 111/2016 approving the Government Emergency Ordinance no. 109/2011 regarding the corporate governance of public companies, published in the Official Gazette, part I, no. 415 of 1 June 2016

– The provisions are also applicable to credit institutions, financial institutions, financial services investment companies, investment management companies and insurance and reinsurance intermediaries;

– The regulation refers to directors and managers who, during their mandate, fail to meet the performance indicators and who may not run for a new similar position for a five-year period as of their revocation.

Law no. 113/2016 amending Law no. 95/2006 regarding the reform in the health sector, published in the Official Gazette, Part I, No. 411 of 31 May 2016

The family doctors in the urban area have the possibility to continue their activity subsequent to reaching the retirement age, within sanitary private units;

Also, such extension shall be approved by a commission organized within the public health authority.

Decision no. 11/2016of High Court of Cassation and Justice, published in the Official Gazette, Part I, No. 436 of 10 June 2016
According to the above mentioned decision, the provisions of art. 105 para. (1) and (2) and art. 106 of the Insolvency Law are construed so that the trustee in bankruptcy does not have the possibility to verify the merits of budgetary receivables ascertained by enforceable titles, challenged within the legal term before the specialized court.

Government Emergency Ordinance no. 20/2016 amending Government Emergency Ordinance no. 57/2015 regarding the wage grid of the personnel paid from public funds in 2016, the extension of some time limits, as well as some budgetary-fiscal measures, and regarding the amendment of some legislative acts, published in the Official Gazette, Part I, No. 434 of 9 June 2016

The remuneration of the budgetary personnel shall be modified as of August 2016, as the regulation establishes new wage and rewarding grids for doctors and professors.

Government Decision no. 449/2016 amending the Methodological Norms for implementing the provisions of Government Emergency Ordinance no. 111/2010 regarding the maternity leave and the maternity monthly allowance, approved by Government Decision no. 52/2011, published in the Official Gazette, Part I, No. 473 of 24 June 2016

The persons who are in maternity leave for raising the child under one year of age (or three years, in case of a disabled child) and in unpaid leave for raising a child under two years of age, as well as the beneficiaries of the insertion incentive shall be able to change their option. Thus, they shall be able to apply for unpaid leave granted by the employer or, as the case may be, for obtaining income subject to tax.

Decision no. 209/2016 of the Constitutional Court regarding the constitutional challenge of the provisions of the Government Emergency Ordinance no. 9/2013 concerning the environmental stamp duty in respect of motor vehicles, published in the Official Gazette, Part I, No. 464 of 22 June 2016

– The Constitutional Court established that the current form of the environmental stamp duty, to be paid at the first registration of the car or at the first ownership transfer, does not contravene the constitutional provisions;
Thus, the Court considers that the authorities have the right to request and to collect a first registration tax;

– Moreover, the Court of Justice of the European Union has recently ruled that the environmental stamp duty is partially illegal, therefore, the Romanian authorities shall make the corresponding legislative amendments. The Court deemed that the taxation is legal, insofar as there is no discrimination between vehicles acquired from abroad and those sold in the country.

Order no. 1.863/2016 of the President of the National Agency for Fiscal Administration approving the Procedure for reducing the income norm, in case of agricultural activities, and approving some forms, published in the Official Gazette, Part I, No. 474 of 24 June 2016

-The natural persons who carry out agricultural activities and record losses as a result of some adverse meteorological events shall benefit of the reduction of the income norm proportionally to the loss;

Nevertheless, in order for the reduction to be applicable, the recorded loss following natural disasters, such as frost, hail, glazed frost, and drought must affect at least 30% of the surfaces for vegetal or animal agricultural production.

Government Emergency Ordinance no. 32/2016 amending Law No. 227/2015 regarding the Tax Code, published in the Official Gazette, Part I, No. 488 of 30 June 2016

– The first payment of a natural person is exonerated from the income tax for the real estate transfer, irrespective whether the payment is made by the debtor, co-debtor, or co-signer or by the personal guarantor or mortgagee;

Also, the VAT quota for the delivery of products used in agricultural production (fertilizers, pesticides) and for the specific provision of services as those used in agricultural sector (ploughing, sowing) was established to 9%, following a decrease from 20%;

– The companies shall have the possibility to make bank withdrawals of more than LEI 10,000 per day (the current threshold) when the payments are to be made to natural persons;

– Wedding and christening organizers shall have the right to request to the tax authority the possibility to exceed the threshold of cash income from natural persons, which is currently set at LEI 10,000 per day;

The natural persons who earn income from salaries or salary assimilated income from research development activities shall be exonerated from taxation.

Government Emergency Ordinance no. 24/2016 amending Law no. 254/2013 regarding the execution of punishments and detention orders ordered by judicial bodies during criminal cases, published in the Official Gazette, Part I, No. 486 of 29 June 2016

The legislator established that the development of scientific works or patented invention shall reduce the punishment of the prisoners by 20 days, irrespective of the number of published works.

Government Emergency Ordinance no. 26/2016 amending Law no. 277/2010 regarding the allowance for family support, published in the Official Gazette, Part I, No. 486 of 29 June 2016

The obligation to pay local taxes and levies for the owned assets is no longer a condition for granting the allowance for family support which the families with lower income having dependents can benefit of.

Government Emergency Ordinance No. 38/2016 amending Law No. 249/2015 regarding the methods of packing and waste management, published in the Official Gazette, Part I, No. 489 of 30 June 2016

– The license granted to an economic operator which undertook the management of packing resulting into waste on the national territory shall be cancelled as of 1 January following the year when the misconduct was recorded for the second consecutive year;

Moreover, the responsibility of the economic operators to manage packing resulting into waste may be individually carried out, by collecting and recovering waste packing resulting from their own activity or taken over from generators or waste possessors or authorized collectors.

Government Decision no. 411/2016 for repealing art. 5 of Government Decision no. 250/1992 regarding annual leave and other leaves of the employees from public administration, from special autonomous administration and from budgetary units, published in the Official Gazette, Part I, No. 452 of 16 June 2016

The budgetary personnel who benefited of medical leave or unpaid leave for personal interests during a year may benefit of the annual leave during the same year.

Order no. 3.892/2016 of the Minister of National Education and Scientific Research approving the nominal list of the beneficiaries of Law no. 269/2004 regarding the granting of a financial aid in order to incentivize the procurement of personal computers, for 2016, published in the Official Gazette, Part I, No. 450 of 16June 2016

– By this order, the list of students who shall benefit of the financial aid for the acquisition of personal computers in 2016 is approved;

The financial aid amounts to EUR 200, and the students shall be under 26 years of age, originating from families whose monthly gross income is of maximum LEI 150 per each family member.

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Partner Ionut Bohalteanu is a registered member of the Romanian Chamber of Tax advisers – the foremost member institution for tax advisers in the country. A highly respected tax adviser, he is equally proficient providing standalone tax advice, or on the tax elements of a large transaction. Most of his clients are international and come to him for standalone tax advice, as evidenced in the work matters detailed here.
Our team provides innovative solutions to real estate issues for overseas and domestic clients alike. Able to assist with evert stage of a property deal, there are strong synergies between our real estate, corporate and banking and finance practices. Our comprehensive knowledge of the Romanian property market has served our clients well and we are natural choice for any company in possession of, or seeking to acquire, real estate assets in the country. Please click here to see what our recent experience includes.
Partner Silvia Sandu is one of the foremost privacy and data protection experts in Bucharest, amply demonstrated by the experience detailed here.
BSMP has acted in some of the most important inbound Romanian transactions for international clients as well as in some of the most important domestic deals. Equally efficient on the buy or sell-side, our experience includes negotiating mergers, demergers and joint ventures with particularly robust expertise in the regulated sectors, particularly energy, where our knowledge of the complicated Romanian regulatory regimes comes into its known. The firm has also acted in the privatization of some of the most important Romanian companies with partner Ionut Bohalteanu being a recognized leader in the field. Please click here to see what our experience includes.
Partner Silvia Sandu is a leading healthcare and pharmaceuticals lawyer, having assisted a host of multinationals with their Romanian operations for a number of years. Please click here to see what her experience includes.
The firm’s energy expertise is market leading and it is one of our core sector focuses. We have acted for a raft of multinational companies in some of the most important inbound Romanian energy transactions. Our diverse sector experience has seen us leading on major oil and gas, power and renewables projects, as well as in developing, niche fields such as mini hydro power plants and solar technology. We are able to assist our energy clients with the full life-span of a project from inception to completion, and with post-completion issues including disputes. Please click here for a summary of our team’s first-class recent experience.
Our employment client roster is comprised almost entirely of multinationals, for whom we have achieved success in a huge range of matters from cross-border redundancies and unfair dismissal claims to resolution of non-compete and high-level confidentiality issues. Practice head Silvia Sandu also has some of the foremost life sciences sector expertise in the market, as demonstrated below. Please click here to see what recent mandates include.
Our dispute resolution practice, led by Gabriela Mina, is steadily carving a reputation as one of the most sought after teams in Bucharest through a string of high-profile successes for international clients and a caseload which includes some of the most high-profile domestic disputes. Please  click here to see what the team’s recent cases include.
The highly regarded international experience of partners Ionut Bohalteanu and Daniela Milculescu, co-heads of the corporate and commercial department, make our firm a natural choice for any company with business interests in Romania. Our sector experience is vast, covering multiple areas from high-end energy instructions for European and Chinese multinationals, to major Romanian mandates in the FMCG, real estate and technology sectors among others. Our work is most often very high-value in nature, particularly by Romanian standards, and we have acted on transactions up to €50m. We assist our clients with all aspects of corporate and commercial, as demonstrated  here .
Competition is a strongly developing practice at the firm, and one in which we are carving a robust reputation for high-level advice to international clients on issues of crucial importance to their operations. Our sector expertise is vast including, among others, the FMCG, software and pharma industries. Our experience is equally wide-ranging covering competition issues as diverse as identification of risk, assistance during investigations by the competition authorities, applications for state aid schemes and training on competition matters (including simulated dawn raids). Please click here to see some illustrations of what the calibre of our practice includes.
Capital markets is one of our firm’s core practice areas. Some of the biggest banks and companies operating in Romania have turned our team , led by Ionut Bohalteanu and Daniela Milculescu. Indeed, we count the Bucharest Stock Exchange itself as one of our clients in an ample demonstration of the high esteem in which our capital markets expertise is held. Equally proficient acting for banks, companies or international investment funds, our lawyers provide clients with one of the most adept offerings available in the market. Please click here to see what our recent experience includes.
Led by Daniela Milculescu, our banking and finance practice is one of the premier offerings in Bucharest. On the lender-side our experience has few equals in the market with a client roster which includes some of the largest banks operating in the region. Our expertise covers the full spectrum of the banking and finance space from big-ticket syndicated loans, acquisition finance and restructuring, to the feasibility of new banking products, asset finance and regulatory advice. Please click here to see recent illustrations of our market-leading capabilities.