Finance News by Forvis Mazars Romania February 2025

Fri | 28.02.2025

Accounting/audit/tax

Forvis Mazars launched the Investing in CEE: Inbound M&A report 2024/2025 study

Investing in CEE: Inbound M&A report 2024/2025 offers an overview of M&A activity in the region in 2024 and looks ahead to the challenges and opportunities in the coming months.

Main conclusions:

Despite geopolitical and macroeconomic headwinds, deal volume in Central and Eastern Europe (CEE) held up relatively well in 2024.
There were 1,270 transactions in the region in 2024, according to the reported data and taking into account the criteria set out in the methodology.
The aggregate value of M&A activity amounted to €27.4bn.
Romania continues to cement its position as the third most preferred destination for investment in CEE.
With 138 deal announcements in 2024, Romania has seen a 6% increase in deal volume from the previous year.

„Looking at the bigger picture, the past few years have been truly positive for Romania. We have gained significant visibility among inbound investors, and it has been inspiring to see local companies grow and mature. What is especially exciting is the growing diversity of investors, the increased initiative, and the openness to exploring new sources of financing. These are clear signs that Romania is on the right track, and they give us every reason to be optimistic about the future.”, mentioned Răzvan Butucaru, Partner, Financial Services & Advisory Leader.

Read more info HERE.

Forvis Mazars extends its presence in CEE with the integration of Taxaco Group in Moldova

Forvis Mazars Group, the international audit, tax and advisory services partnership, announces the integration of Taxaco Group in Moldova. The Chișinău-based audit, tax and accounting services provider will operate under the Forvis Mazars brand.

This latest move reinforces Forvis Mazars' commitment to driving growth and innovation in the country and across the Central and Eastern Europe region, building on decades of collaboration with Taxaco Group.

Iuri Cicibaba, Country Managing Partner of Forvis Mazars in Moldova, commented: “Becoming part of Forvis Mazars is a game-changer for our firm and the Moldovan business landscape. This integration propels us onto the global stage, equipping us with unparalleled resources for our clients and a bold vision for the future. Now, as Forvis Mazars in Moldova, we are committed to redefining excellence in professional services, delivering innovative, high-impact solutions that empower businesses to thrive in an increasingly complex world.”

Read more info HERE.

Forvis Mazars in Romania strengthens its leadership team with four new Directors

Forvis Mazars, the international tax, audit, and advisory network, announces the appointment of four new leaders to its Romanian executive management team.

As of 1 January 2025, Forvis Mazars has appointed Mihaela Hampu and Alexandru Stanciu as Tax Directors, Marius Roman as Audit Director, and Ovidiu Strasszer as Regulatory Reporting Director, to further strengthen the firm’s capabilities and expertise in key areas of their business.

Read more info HERE.

The VAT gap in the European Union is rising, by Forvis Mazars

The European Commission published the VAT Gap report for 2022. At EU level, the collection rate decreased by approximately 0.4%, meaning an increase of the VAT gap from 6.6% in 2021 to 7% in 2022.

Main conclusions:

In 2022, Romania recorded the highest VAT collection deficit in the European Union (EU), losing 30.6% of VAT revenues. However, this percentage is 4.2% lower compared to 2021.
At EU level, the VAT gap increased in nominal value, reaching €89.3bn, which represents 7% of the revenue that should have been collected.

Bianca Vlad, Tax Partner, Forvis Mazars in Romania: „In 2022, Romania continued to lead the EU ranking in terms of VAT gap percentage despite a 4.2% decrease compared to the previous year. The country still loses approximately one-third of the VAT that should be collected, and in 2022, the nominal value of these losses exceeded €8 billion. After 10 consecutive years with a VAT collection deficit exceeding 30%, Romania is, for the first time, on a downward trend, marking a significant decrease. It is worth recalling that the National Recovery and Resilience Plan (PNRR) includes a set of measures through which the Ministry of Finance has committed to the most extensive tax administration reform based on digitalisation. The objective is to reduce the VAT gap by 5% by 2026, compared to 2019 (34.7%). Thus, Romania should reach a collection deficit of 29% by 2026.”

Read more info HERE.

Female leadership in Romania and its impact on business success, by Forvis Mazars

Forvis Mazars has launched a study exploring the key factors that determine the success or failure of startups. Based on data from over 1,700 startups worldwide, the report provides valuable insights for future entrepreneurs and business leaders, including those in Romania.

Key findings:

Strong leadership and a well-aligned team are crucial, as diversity in skills, perspectives, and experiences improves problem-solving and execution.
Strategic funding remains critical for growth. While Romania faces challenges such as legislative barriers and limited funding, it remains an attractive market for international investors, ranking 4th in CEE for the number of successful M&A transaction services in the past year.
Women are driving change in Romania’s entrepreneurial landscape. One in four companies in Romania is owned by women, and over 36% of leadership positions are held by women.

Read more info HERE.

The importance of preparing the transfer pricing report, by Forvis Mazars

As the Romanian tax authorities intensify their focus on intra-group transactions, companies are seeing an increase in transfer pricing audits. In this context, it has never been more crucial for businesses to maintain thorough documentation of their transactions with affiliates to avoid costly adjustments and penalties.

Key insights on:

Transfer pricing obligations for companies across different taxpayer categories.
Materiality thresholds for intra-group transactions.
The risks of non-compliance with Romanian regulations.
Best practices for preparing the report in advance, even before the tax authority's request.

Properly preparing the transfer pricing report not only helps mitigate the risks of double taxation but also ensures compliance with local tax laws, preventing penalties and fines. With audits becoming more frequent, being proactive can save time and money.

Read more info HERE.

Romania has obtained qualified jurisdiction status under the Global Minimum Tax Rules (Pillar 2), by Forvis Mazars

On 15 January 2025, the Organisation for Economic Co-operation and Development (OECD) published a Central Record of legislation with transitional qualified status for the purposes of the Global Minimum Tax (Pillar 2).

Romania is recognised as a jurisdiction with a qualified system regarding the Income Inclusion Rules (IIR), QDMTT, and the QDMTT Safe Harbour through Law No. 431/2023. For a multinational group with entities operating in Romania, this means that the top-up tax in Romania, if any, will be collected directly by the Romanian tax authorities via the QDMTT.

Read more info HERE.

This article is provided by our Finance Partner, Forvis Mazars Romania.

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