When doing business in Romania, entrepreneurs are used to rules being changed during the game. Yet, no one could have predicted how Romanian Socialists, now in power, would change the Fiscal Code.
In short, many changes to the Romanian Fiscal Code enter into force on November 1st, and entrepreneurs should know about these. Among these, some are crucial for the firm’s activity. Here are just some of them.
Main Changes that Socialists Brought to the Romanian Fiscal Code
Cash payments and collections between individuals and companies
Collections and payments can be made between a legal entity and a natural person within the daily ceiling of 5,000 lei to/from a person for deliveries or purchases of goods or services, dividends, assignment of receivables or other rights and receipts or repayments of loans or other financing.
Important: Invoices that exceed RON 5,000 can be paid in cash within the limit of RON 5,000, and the difference over the ceiling can only be paid through the bank
Cash payments and collections between 2 natural persons
Collections and payments can be made between 2 natural persons within the limit of a daily ceiling of RON 10,000/transaction until December 31, 2024
Cash payments and collections between 2 legal entities
Cash can be collected within a daily limit of RON 1,000 lei from a legal entity.
Payments can be made to legal entities within a daily ceiling of RON 1,000/person but not more than a total ceiling of RON 2,000/day.
Cash payments can be made to an employee for advances for settlement used to pay suppliers within the limit of a daily ceiling of RON 1,000, established for each person who received advances for settlement.
Balance at the House Register
The cash amounts in the cash register of legal entities cannot exceed, at the end of each day, the ceiling of RON 50,000. Cash amounts that exceed the ceiling are deposited into the bank accounts of these persons within two working days.
Still Doing Business in Romania?
The economic context favours those who try Dubai or Delaware to set up their business. Yet, some entrepreneurs will undoubtedly remain. Others will go bankrupt, while others will still be prosperous. However, Romania will not be the same business destination as it has been. This will certainly affect the state revenue, but this is to be judged by those who will lead the country from 2024 onwards, the year when general and local elections will take place.