Most companies which have to keep books in Romania have to file their 2017 half-year report (1 January 2017 – 30 June 2017) by 16th August. For topical reasons, this article contains relevant practical tips.
As well as the yearly preparation and mandatory submission of financial statements to the Ministry of Finance, companies are also obliged1 to submit a half-year report as of 30th June. In this context, the following notes are important.
The obligation to prepare and submit a half-year report affects the following companies, which reported sales revenues above 220,000 RON (ca. 50,000 EUR) in the previous year.
- Economic operators (micro enterprises, small, medium and large companies; public interest entities) which must use Romanian accounting regulations according to the ordinance 1802/2014.
- Companies which must use accounting regulations in accordance with international accounting principles (IAS/IFRS) as per ordinance 2844/2016.
- Romanian subdivisions such as branches and production sites of companies resident in other EU member states.
This obligation is also valid for companies which have opted for a reporting period differing from the calendar year.
In the following cases, there is no obligation to submit a half-year report:
- Legal entities / companies with no business activities between their incorporation and 30th June 2017
- Legal entities / companies which were temporarily inactive during the whole first quarter of 2017
- Legal entities / companies founded during 2017
- Legal entities / companies which are in liquidation.
Content and submission
The ordinance contains the binding presentation format and the content for the statements for the period 1st January – 30th June 2017. The extent of the information for the balance sheet, profit and loss statement as well as informative additional information for the financial statements depend on the size category of the company, and the applied accounting rules (Romanian accounting rules or in accordance with IAS/IFRS). So, for example there are certain facilitations for micro enterprises (declaration of a shortened profit and loss statement) in the ordinance.
The submission can be done in paper form (including a CD containing the electronic data) or only electronic by using the portal www.e-guvernare.ro.
Penalties for late submission
Breaking the deadline for submitting the half-year statements on 16th August 2017 would carry the following penalties2:
- 300 – 1,000 RON for a delay of between 1 and 15 working days
- 1,000 – 3,000 RON for a delay of between 16 and 30 working days
- 1,500 – 4,500 RON for a delay of more than 30 working days
Amendments to the accounting rules for green certificates
Ordinance 895/2017 also made additions to the Romanian accounting rules set out in Ordinance 1802/2014. In Articles 8 and 9 the accounting treatment of so called “green certificates” (Romanian: certificate verzi) with effect from 1st April 2017 has changed for single entities as well as for consolidated financial statements in line with the emergency ordinance 24/2017 (this ordinance is in connection with promoting renewable energy) and foresees the off-balance recording of green certificates received since 1st April 2017 until their transaction date.
The submission of the half-year statements as of 30th June 2017 applies to minimum turnover of 220,000 RON (previous year) and is obligatory for most companies. Attention should be paid to the fact that Romanian branches and production sites are also affected by this obligation.
As preparation and deadline (16th August 2017) for submission take place during the summer holiday season, companies should plan ahead to get all approvals and signatures required.