Ghidul turistic si investitional al regiunii Mures (editia 1, lb. engleza)
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Ghidul turistic si investitional al regiunii Mures (editia 1, lb. engleza)

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Prima editie a Ghidului turistic si investitional al regiunii Mures, editat de JCI Targu Mures, cu ocazia participarii ei la Conferinta Europeana JCI din Aarhus Danemarca, unde am oferit fiecarei ...

Prima editie a Ghidului turistic si investitional al regiunii Mures, editat de JCI Targu Mures, cu ocazia participarii ei la Conferinta Europeana JCI din Aarhus Danemarca, unde am oferit fiecarei delegatii JCI prezente cate un exemplar si am construit relatii de parteneriat in vederea incurajarii schimburilor economice cu regiunea noastra in paralel cu promovarea potentialului turistic al regiunii.

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    Ghidul turistic si investitional al regiunii Mures (editia 1, lb. engleza) Ghidul turistic si investitional al regiunii Mures (editia 1, lb. engleza) Document Transcript

    • 1ST EDITION, JUNE 2010 Coperta 1 MURES REGIONAL TOURISTIC AND INVESTITIONAL GUIDECoperta Exterioara Targu Mures Față Sighisoara Reghin Coperta 1 Sovata
    • Laszlo Pacso Page 3 Coperta 2 Marius Alexa Page 4 Mihaela Stroe Page 5 Tugrul Akay Page 7 Filipe Carrera Page 8 Mures County Page 9 Targu Mures Page 13 Sighisoara Page 22Coperta Interioară Reghin Page 29 Sovata Page 31 Saxon Fortified Churches of Transylvania Față Page 26 Business Traveling in Targu Mures Page 33 Romanian String Section Page 39 Transylvanian Wines Page 40 Health and Wellness trip in Mures Page 43 Mures Industrial Park Page 45 Taxation in Romania Page 52 Legal considerations for foreign investors in Romania Page 72 Financial reporting in Romania Page 77 Targu Mures Television Page 89 Targu Mures Radio Station Coperta  Page 91
    • Laszlo Pacso JCI Târgu Mureş was born in order to stimulate the business environment from Târgu Mureş and to cre- ate meeting and networking platforms for business people in November 2009. Then, a group of young talented business people had a shy start in this story, by organizing the first BNE (Business Networking Event), which was an unexpected success. That was the first step. Encouraged by the obtained success, we continued the steps for creating the JCI Târgu Mureş organiza-tion and for affiliating to JCI Romania. The entire process did not last more than a month.We gathered around us, around the group with initiative, a core of special people, who have a lotof passion and enthusiasm. In this way, it was not hard for us to continue the story in the samerhythm. So, there followed another two BNE sessions – one in December 2009 and another inJanuary 2010.We have created a personal development program, which we called (in a suggestive way) „Serilede Dezvoltare” (The Development Nights).The name of this program represents the fact that it takes place in short training sessions, everyWednesday on 6:00 PM.Because we are an organization oriented towards projects, we organized two Project Managementtraining sessions too, and a Business Creativity session – in order to encourage the ideas flow intoour projects. The results did not wait to appear, and so the „Know-How-Fest” was born. It tookplace during seven sessions, which were a real success.It inspired us to want more, to create the first visible wave of change around us. We have dreamedand we have had the courage and the will to make our dream come true. This is how „Târgu MureşBusiness Days” was born; the biggest local Business Event organized ever in our small town. Theevent had turned our small organization into a local brand and a partner worth of trust for develop-ing and promoting our local community.We have demonstrated that the attitude is the main ingredient when you want to change some-thing, and with a lot of passion, you can accomplish beautiful things out of nothing. We have notstopped. We continued with a Conference series, on various themes like communication and lead-ership. We invested time, money, and energy. We made the book of Filipe Carrera „Networking”happen in Romania too.We became associates with the TV from Târgu Mureş. Every Thursday we have our own show „Busi-ness Ways”, on 8:30 PM. Now, we are working on editing a tourist and investor guide in Mureşregion. With that, we encourage the tourism and the economics exchange in our region. Moreover,we are certain that the story does not end here.We will continue to generate positive changes and to inspire the business environment with ourstory. The story of JCI team. Laszlo Pacso JCI Targu Mures President 2010 Page 3
    • About JCI Romania 2010 Mihaela Stroe Europe, as the whole world, is confronted today with Dear JCI friends, the important challenges of fast changing commu- nication models, new emerging markets, an unprec- edented immigration phenomenon, a need for dif- From my position as Vice-President for International ferent approaches in terms of conflicts and ensuring Relations and Deputy National President in JCI Ro- power balance, dealing with the consequences of mania, I salute warmly the idea of creating a tour- more than a century long capitalist model, reducing ist and investor guide for Mures County, one of the the gap between highly developed and very poor richest and beautiful counties from Romania. societies and, perhaps above all, climate change, which urges us all to develop new behavioral pat- The policy for international relations within JCI Ro-terns and have them adopted by the entire population. mania has as major objectives finding ways of coop-In order to keep up with the speedily changes in the global economy, new business models need eration between our local organizations and otherto be created and responsible individuals cannot but acknowledge that in order to preserve the ac- organizations from JCI network, as well as creat-complishments of the past century or more, we need to invent new principles for the very founda- ing opportunities for organizing events where col-tion of our actions, be they political, economic or civic ones. leagues from JCI to come to Romania and discoverJCI has an extremely valuable asset that recommends the organization as a potentially important our potential (both for business and for tourism).actor in the effort to tackle these challenges at a global level: the wide international network ofsuccessful and responsible individuals. JCI Tg. Mures, even though is one of the newestWhether we build upon this or not is entirely up to us all. local organizations, put a lot of passion and effortAlthough a young organization, JCI Romania is nevertheless constantly growing. Established in to promote the beauty of their county and also thelate 2003, it already covers all major Romanian cities, having local organizations in Bucharest, Iasi, business opportunities that could be offered in theirTimisoara, Cluj-Napoca, Tg. Mures, Suceava, Vaslui, Sibiu, Oradea, Lugoj and preparing new LOMs area. One of the facts to prove this accomplishment,in Botosani, Brasov and Piatra Neamt. besides this guide, is organizing a event called Business Days for promoting idea of entrepreneur- ship for more than 500 people, who discovered during both days which are the values and spiritIn the context of a growing economy, but bearing in mind that Romania is yet on its way to re- of JCI (presented by the VP Tugrul Akay), which are the best business opportunities from importantestablish a business culture based on democratic values, justice and real competition, JCI Roma- Romanian entrepreneurs, and which are the best skills needed as entrepreneurs for real success.nia chose a business oriented approach, aiming at bringing positive changes in the local businessenvironment, contributing to building trust among business communities at national, as well asinternational level, and to enhancing a new vision in terms of the role business-people should pay Therefore, take a close look to this guide, discover Mures county and its beauty, come to Romaniain the modern society. and let’s start to make business together. We are opened for twinning with other organizationsBy bringing to the JCI European Conference in Aarhus some “sample” of what the Romanian busi- (so far JCI Bucharest is in twinning program with JCI Eurasia from Turkey, JCI Iasi is enrolled in aness environment looks like today, and of what JCI Romania is doing in this context, we hope to multi-twinning program with JCI Brussels - Belgium, JCI Amsterdam - Netherlands, JCI Stuttgartcontribute to building the level of trust and confidence needed in JCI, so as to get the point where - Germany and JCI Tarragona – Spain), we re-launch from 2011 International Danube ConferenceJCI members throughout the world work towards specific common goals that reach further than with our colleagues from JCI Lugoj and we bid for EPM 2012 in Sibiu. Romania has a great poten-their local and national communities. tial, don’t miss it!We wish to give special thanks to JCI Tg. Mures for their very interesting projects implemented thelast months especially for the Romanian presence at the Trade Show in JCI EC Aarhus.Let us all enjoy a great successful European Conference together! Marius Alexa JCI Romania President 2010 Page  Page 
    • Nonverbal Magazine Tugrul Akay Besides my work for more than 4 years serving JCI values and spirit, let me tell you some information about me. My specialization is in nonverbal commu- nication, especially in impression management and detecting deception, where I will receive my PHD de- gree this autumn. Since 2002 I run my own compa- ny called Acta Nonverbal, which offers training and I participated in press conference and media interview, met with the president of Chamber of consultancy in nonverbal communication and profil- Commerce Targu Mureş, businessmen and Governor of the city. They are supporting JCI very much. ing for various business people and companies. The press conference was very well on-ganized and huge interest to JCI and also Chamber of Commerce reday to invite Businessmen form Turkey for investment. I see this invitation very good opportunity for Turkish Companies, Targu Mureş is a key to Europe. What sets me apart from others is that I am trained to use FBI techniques in business. Since 2003 I col- laborate with Joe Navarro (special FBI agent retired), JCI Targu Mureş Business Days was very well organized and 200 people were participated theyone of the first American behavior profilers and nowadays professor at FBI Academy, being the invited 30 spekaers and traininers and had a trade show event with speed networking. I madeonly Romanian trained by him and being licensed to represent him in Romania. With his support the opening speech about JCI and International Opportunies of our organization. I found from theI launched recently an online magazine called Nonverbal Magazine (www.nonverbal.ro) which is praticipants that a very huge interest to JCI and eager to learn what we can do for our community.dedicated to research and work for using nonverbal intelligence in business, careers and interper- The President of JCI Targu Mureş Lazslo Paczo is very eager and humble for JCI , good motivator hassonal relations. a very strong impact in the community and he says he wanted to something for his town and that is the reason he joined JCI, I think we need these examples in every community like our founder, Henry Giessenbier. As JCI we are always encouraging our leaders, to be a role model for pozitiveYou can find out more about my work, research and achievements reading my blog www.mihaelas- change for our community and JCI Targu Mureş is the role model of our vision.troe.com or connecting with me on www.likendin.com/in/mihaelalilianastroe. I would like to thank you again to Laszlo Paczo, the President of JCI Targu Mureş and all the mem- bers of JCI Targu Mureş for this wonderfull event and wish you success for doing a lot of pozitive things for their community. Mihaela Stroe Tugrul Akay JCI Romania Vice-President for International Relations 2010 JCI International Europe Vice-President 2010 Page  Page 
    • Filipe Carrera Mures County Mureş is a county (judeţ) of Romania, in the historical • Musical instruments (Reghin).My name is Filipe Carrera and I came across JCI Targu Mures in my work as international trainer region of Transylvania, with the administrative centreand book author. With JCI Targu Mures I publish the Romanian version of my book “Networking in Târgu Mureş. Mureş County and Sibiu County together produce– Your Professional Survival Guide” that is available in the Romanian market since April 2010. about 50% of the natural gas developed in Romania.That was only possible thanks to a great team effort that manage in record time to have the book Geography Salt is also extracted in the county.ready to be publish. The county has a total area of 6,714 km². DemographicsEverything was ready to do the official launch of the book in Targu Mures, but the Icelandic ash The northeastern side of the county consists of the In 2002, Mureş had a population of 580,851 and thecloud prevent me of traveling to Romania, but that was a great opportunity for JCI Targu Mures Călimani and Gurghiu Mountains and the sub-Car- population density was 86.5/km:demonstrate once more high entrepreneurial skills, because we did the launch in Targu Mures pathian hills, members of theas planed but using video-conferencing and it was great because we even manage to do some Inner Eastern Carpathians. The TOTAL ROMANIANS HUNGARIANS ROMA GERMANS OTHERSinteractive activities even been more than 3,000 Km apart. rest of the county is part of 580,851 309,375 228,275 40,425 2,045 731 the Transylvanian Plateau, with deep but wide valleys. 100% 53.26% 39.30% 6.96% 0.35% 0.12%Also JCI Targu Mures is using the web and social media to promote book, demonstrating to theworld that this is an organization with young and innovative members that use the new tools The main river crossing in the county is the Mureş River. In terms of religion:available to the marketers. The Târnava Mare River and the Târnava Mică River also cross the county. • Romanian Orthodox - 53.3%For me nothing of the above was a surprise, JCI Targu Mures has been conducting several project • Reformed Church - 27%with great success, namely the “Business Days” project that is being recognized as one of the Neighbours • Roman Catholic Church - 9.5%best projects in Europe of JCI (Junior Chamber International), so I believe the many great things • Other Christian denominations - 8.2%are expected from the team of JCI Targu Mures, lead by Lazlo Pacso. • Harghita County in the East. • Jewish, Muslim, Atheist, Non-religious, other or un- • Alba County and Cluj County in the West. declared - 1.9% • Bistriţa-Năsăud County and Suceava County in the North. Tourism • Sibiu County and Braşov County in the South. Some of the main tourist attractions in the county are: Economy • The medieval city of Sighişoara. The predominant industries in the county are: • The old city of Târgu Mureş. • Wood industry. • Sovata Resort. • Food industry. • Călimani Mountains - Gurghiu Mountains. • Textile industry. • The city of Reghin Filipe Carrera • Glass and ceramics industry. JCI Senator • Construction materials. Page  Page 
    • Politics COMMUNES COMMUNES COMMUNESThe Mureş County Council has 34 members. After the Bereni Miheşu de Câmpie Sărăţeni2008 local elections, the structure of Mureş CountyCouncil by political parties is the following: Bichiş Nadeş Saschiz Bogata Neaua Solovăstru Political Party Number of Seats Brâncoveneşti Ogra Stânceni Democratic Union of Hungarians in Romania 13 Breaza Papiu Ilarian Suplac National Liberal Party (Romania) 8 Ceuaşu de Câmpie Pănet Suseni Liberal Democratic Party 7 Cheţani Păsăreni Şăulia Social Democratic Party 6 Chibed Petelea ªincai Chiheru de Jos Pogăceaua TăureniAdministrative divisions Coroisânmărtin Râciu Valea Largă Corunca Răstoliţa VânătoriMureş County has 4 municipalities, 7 towns and 91communes: Cozma Ruşii-Munţi Vărgata Crăciuneşti Sâncraiu de Mureş Vătava MUNICIPALITIES Cucerdea Sângeorgiu de Mureş Veţca Reghin Crăieşti Sânger Viişoara Sighişoara Cristeşti Sânpaul Voivodeni Târgu Mureş Cuci Sânpetru de Câmpie Zagăr Târnăveni Daneş Sântana de Mureş Zau de Câmpie Deda TOWNS Eremitu Iernut Ernei Luduş Fântânele Miercurea Nirajului Fărăgău Sângeorgiu de Pădure Găleşti Sărmaşu Găneşti Sovata Gheorghe Doja Ungheni Ghindari Glodeni COMMUNES Gorneşti Acăţari Grebenişu de Câmpie Adămuş Gurghiu Albeşti Hodac Aluniş Hodoşa Apold Ibăneşti Aţintiş Iclănzel Bahnea Ideciu de Jos The text in the previous article was tak- Band Livezeni en from the public encyclopedia Wiki- pedia. Adress: http://wikipedia.org Batoş Lunca This update is accurate to the best of Băgaciu Lunca Bradului our knowledge at the time when this overview was prepared. It is, however, Băla Mădăraş meant as a general guide and comes Bălăuşeri Măgherani with the recommendation that profes- sional advice be sought before any Beica de Jos Mica action is taken Page 10 Page 11
    • Târgu Mures Targu Mures is the seat of Mures County in the north- clared the city a royal settlement. In 1492, wayvoda Ist- central part of Romania. Geographically, it is distant ván Báthory strengthened its monastery with fortifica- 346 km from Bucharest , 480 km from Belgrade, 515 tions, this was a pentagon-shaped outer castle tower.Hereby, the Institution of Mures County Prefect wishes to express full support and appreciation of km from Budapest and 598 km from Sofia. Located on In 1506, the troops of Pál Tomori were beaten by thethe Junior Chamber International Mures young entrepreneurs organization, concerning its activityin developing new economy models based on knowledge, this activity being deployed with success the Mureş River valley, the city is considered the infor- Szeklers rising against the payment of an extraordinaryand dedication in the sphere of services and information processing. mal capital of the historical province of Székely Land. Ox tax imposed on them on occasion of the birth of Louis II of Hungary. In 1557, the Reformed Church Col- The city spreads out from Fortress Church in the center lege (i.e. Presbyterians) was established as the oldestThrough this trustworthy partnership between Institution of Mures County Prefect and Junior of the town, built in the 14th century, to form an area Hungarian school of Transylvania. In 1571, the sessionChamber International Mures, we aim to contribute to the stimulation of the Mures County busi- of 49.3 square kilometres. As of January 1, 2009 the of Transylvanian parliament under prince John II Sigis-ness community and not only. For us, this partnership represents a very viable way to provide man- city had a population of 145,151 inhabitants, making mund Zápolya accepted the free preach of the word ofagers and entrepreneurs the opportunity to grow both in business and life, which will lead to the it the 16th largest city in Romania. God, including the Unitarian Church. In 1600-1601,development of business environment and the improvement of the quality of life . as a result of the siege of Giorgio Basta, the fortress Etymology turned to ruins. In 1602, the troops of Gergely Né- meth put on fire the remaining houses of the town, The current name Târgu Mureş, whose historical form therefore, in 1602 the reconstruction of the fortress was Oşorhei, is the equivalent of Marosvásárhely was started further the advice of mayor Tamás Bor- as Romanian ‘târg’ means ‘market’ and Hungarian sos, but it was actually built between 1614 and 1653. ‘vásárhely’ means ‘marketplace’. Alternate Romanian Mózes Székely the only prince of Szekler origin visited spellings of its name are Târgu-Mureş,Tîrgu Mureş and the city in 1603, when liberated Transylvania from for- Tîrgu-Mureş. eign domination. In 1616, it was granted the status of a free royal city under the name of Maros-Vásárhely by History prince (fejedelem) Gábor Bethlen. In 1658, Turkish and Tartarian troops invaded and burned it, 3000 people The city was first documented in 1332 in the papal were taken into captivity. In 1661, as no one show will- registry under the name Novum Forum Siculorum, and ingness to accept the duty of prince, under pressure as ‘Sekulvasarhel’ (Székelyvásárhely) in 1349. On the from pasha Ali, Mihály Apafi was elected prince here. place of its Castle Church, the Dominican’s church In 1662, resulting from the negligence of the Turkish stood until the Mongol invasion, when it was de- military residing here, the city was almost completely stroyed. In its place, the Franciscans built a new Gothic burnt down. In 1687, it was devastated by German church in 1260 , which was completed in 1446. Since imperial troops. Sincerly yours, 1439 the town was the scene of the session of parlia- Marius Pascan ment ( diet) 36 times.In 1405, the King of Hungary In 1704, the kuruc troops of Pál Kaszás occupied the Mures County Prefect Sigismund of Luxembourg granted the city the right to fortress, which was re-occupied by Lörinc Pekry from organize fairs. In 1470 King Matthias Corvinus granted the labanc in 1706. On 5 April 1707, Francis II Rákóczi the first judicial privilege to the city, and in 1482 de- was raised to the chair of princes. In 1707 it was struck Page 12 Page 13
    • by pest, more than 3500 people died, the black death Romanian population increased throughout the latter tion has started to work abroad temporarily. The local December with 16 days and the least in August, Sep-renewed in 1709, 1719 and in 1738-39. The city re- half of the 20th century. economy has started to get stronger after various tember and October with 8 rainy days. The averageceived a major boost to its social and economic life From 1940 to 1944, as a consequence of the Second investors settled in the area. The city has a substantial annual temperature for Târgu Mureş is of 8.6 °C (47when it became home to supreme court of justice of Vienna Award, the city was ceded back to Hungary. ethnic Hungarian minority, some of whom identify as °F). The record minimum temperature registered in thethe Principality of Transylvania in 1754. In 1802, the After Hungary was occupied by Germany in 1944, Székelys. Since 2003 some Székely organizations have city is of −32.8 °C (−27 °F) in the years 1942 and 1963.Teleki Library founded by count Sámuel Teleki was a Jewish ghetto was established in the city. Maros- been campaigning for the city to become the center The record maximum temperature is of 39 °C (102 °F),opened for the public with 40.000 volumes. vásárhely re-entered the Romanian administration at of an autonomous region again. Dorin Florea is the recorded in 1936. the end of the war in October 1944, however, on 12 first directly elected ethnic Romanian mayor of theAvram Iancu, the leader of the 1848 Romanian revolu- November 1944 general Vinogradov of the Soviet Red city, though the city council retains a majority of ethnic Demographics Army expulsed the returning Romanian authorities Hungarians.tion in Transylvania, was a young lawyer in the city of from Northern Transylvania with reference to the mas- According to the most recent 2002 census data, the cityTîrgu Mureş before engaging in the fight for the rights sacres committed by members of Iuliu Maniu’s so called Geography had a population of 149,577. Among them 69,825 areof Romanians living in Transylvania. On 4 November Maniu-guard, and the Romanian authorities were not Hungarians forming the largest urban Hungarian com-1848, the Szekler troops were beaten by the Austrian allowed to return until the government of Petru Groza The city is located at the centre of the historical region munity in Romania, surpassing that of Cluj-Napoca.imperial troops under its walls, and the city was also was formed on 6 March 1945. of Transylvania and covers an area of 49.3 square kilo- The 2002 census was the first to show the Hungarianscaptured. On January 13, 1949 the troop of major Tol- metres (19.0 sq mi). It lies at the junction of three geo- as a local minority. The city is officially bilingual andnay recaptured it. On 30 July 1849, Sándor Petofi and graphical regions of Transylvania (Transylvanian Plain, both Romanian and Hungarian languages are recog-Bem set out from here for the Battle of Segesvár. After World War II, the communist administration of Mureş Valley and Niraj Valley) at 330 meters above sea nised as official and used in public signage, education,In 1854, Szekler martyrs Károly Horváth, János Török Romania conducted a policy of massive industrializa- level. The city extends onto both banks of the Mureş justice and access to public administration, however,and Mihály Gálfi were executed on the Postarét for tion that completely re-shaped the community. Be- river, however, the downtown area and the greater in case of commercial signage and advertisements theplotting against the Austrian rule, since 1874 a monu- tween 1950-1968, it was the center of the Hungarian part of the districts are located on the left bank. The bilingual signage is usually used only by companies ifment marks the place. In 1861, Marosvásárhely became Autonomous Province, later named as Mures-Hun- Corneşti-plateau ( Hungarian: Somos-plateau) is the they are owned by Hungarians. Roma people makethe seat of Marosszék, in 1876 that of Maros-Torda garian Autonomous Region. On 7 September 1959, city’s highest point (465m above sea level, co-ordi- up 2.51% of the city’s population which is consider-County. In 1880 the statue of Bem was inaugurated in Gheorghe Gheorghiu-Dej, Secretary-General of the nates: ably lower than their proportion of 6.96% in MureşRoses Square, in downtown area; in 1893 the statue Romanian Workers Party, and the Prime Minister Chivu 46.5531°N 24.5984°E). County.of Kossuth was as well. The statue of Rákóczi was also Stoica visited the city. It was then decided where toinaugurated in 1907. All three were demolished after build the fertilizer production plant, and the new resi- The city is surrounded by the following communes: Ethnic CommunitiesWorld War I between 1919 in 1923. After Transylvania dential quarters of the city. It was decided that the resi- Sângeorgiu de Mureş, Livezeni, Sântana de Mureş,became part of Romania, all three of them were de- dential quarters would not be built in the Maros valley, Sâncraiu de Mureş, (Corunca), Cristeşti, Ceuaşu de Ethnic structure evolution from 1850 till 2002:stroyed between 1919 and 1923. but on the surrounding hills. Câmpie. Two villages MureşeniThe provincial appearance of the city changed greatly in (Meggyesfalva) and Remetea YEAR Total Romanians Hungarians Germans Jews Roma Othersthe late 19th century and early 20th century. In 1913, In March 1990, shortly after the Romanian Revolution (Remeteszeg) are administered 1850 7,855 6.0% 82.6% 3.1% 2.6% 3.6% 2.1%the Hungarian Art-Nouveau style city hall complex and of 1989 overthrew the communist regime, the city was by the city.Cultural Palace was opened, as part of mayor Bernády the stage of violent confrontations between ethnic 1869 12,678 5.2% 88.9% 3.5% n.a. n.a. 2.4%György’s urban renewal. After World War I, together Hungarians and ethnic Romanians (See Ethnic clashes Distances between the city and 1900 20,229 11.6% 83.3% 3.6% n.a. n.a. 1.5%with the rest of Transylvania, Marosvásáshely became of Târgu Mureş). some of the major cities in Ro- 1910 25,517 6.7.% 89.3% 2.4% n.a. n.a. 1.6%part of Romania and was re-named Oşorheiu. From mania: As of 2000, a considerable percentage of its popula- • Bucharest: by rail 448 km, by 1930 40,058 26.7% 57.2% 1.7% 12.1% 1.1% 1.2%having been an 89% Hungarian-populated city (1910), road 346 km; 1966 86,464 28.3% 70.9% 0.6% n.a. n.a. 0.2% • Braşov by rail 282 km, by road 1977 127,783 34.8% 63.6% 0.6% 0.4% 0.5% 0.1% 171 km; • Cluj-Napoca 127 km by rail, 1992 164,445 46.1% 51.4% 0.3% 0.1% 2% 0.1% by road 105 km; 2002 149,577 50.4% 46.7% 0.2% n.a. 2.4% 0.01% • Sibiu by rail 189 km, by road 124 km; YEAR Total Romanians Hungarians Germans Jews Roma Others Climate 2002 149,577 75,317 69,825 275 n.a. 3,759 401 Târgu Mureş has a continental Personalities climate characterised by warm dry summers and rela- tively cold winters. Winter temperatures are often be- low 0 °C (32 °F). Throughout the year there are 38 days Many personalities have been born or lived in the city with snow, and more than 60 days when the snow and helped shaping it in different fields: covers the ground. In summer, the average tempera- ture is between 18 °C (64 °F) and 19 °C (66 °F) (the • Tamás Borsos (1566-after 1633) average for June, July and August), even though tem- • Péter Apor (1676–1752) peratures sometimes reach 36 °C (97 °F) during this • Gheorghe Şincai (1754–1816) period. On average, there are 143 days with precipi- • György Aranka (1737–1817) tation over the course of the year, most frequently in • Petru Maior (1756–1821) Page 14 Page 15
    • • Sámuel Teleki (1739–1832) in 1557. The religious reform required for churches to• Farkas Bolyai (1775–1856) have no paintings, statues or religious frescos.• Avram Iancu (1824–1872)• Alexandru Papiu Ilarian (1827–1877) The existence of the Franciscan order in Marosvásárhe-• János Bolyai (1802–1860) ly was directly affected by the religious reform which• György Bernády (1864–1938) was largely spread in Transylvania during the 16th cen-• József Dudás (1912–1957) tury. In 1557, the influence of the Reformed Church• János Kemény (writer) (1903–1971) over the Hungarians in the town was so strong that it• Károly Molter (writer) (1890–1981) eventually led to the confiscation of the properties of• András Sütő (writer) (1927–2006) Catholic monastic orders. Franciscan monks, who until that time had been attending the church in the fortress,The city was the home of composer György Orbán were forced to leave town. They returned after nearly(born 1947), SMURD doctor Raed Arafat (born 1964) two centuries when the political climate had becomeand football player László Bölöni (born 1952). favorable to Catholicism due to the instauration of the Habsburgs in Transylvania. They bought the land in theDistricts of the city center of the town where they built a new church and monastery by 1777. The tower, the only part that is still ROMANIAN HUNGARIAN standing, was added to the church’s facade in 1802 by Centru Belváros Dâmbul Pietros (1848) Kövesdomb (1848) Unirii Egyesülés (on the right of the Mureş River) ( Benefalva and Hídvég villages) Rovinari (Ady Endre) Ady Endre Aleea Carpaţi Kárpátok sétánya Budai Nagy Antal Budai Nagy Antal Gara Állomás Livezeni Jedd 1989 December 22 1989 December 22 (November 7) (November 7) Tudor Vladimirescu Sásvári-negyed Răsăritului Kikelet Mureseni Meggyesfalva Substejăriş Cserealja Cornişa Kornisa Valea Rece HidegvölgyPlaces of worship architect János Topler. In 1971 the municipality decid- Nepomuc, Holy Cross belong to the same Michael An- ed to demolish the monastery to create the necessary gelo Unterberger. The stained glass windows made byThe Reformed Fortress Church is the oldest church in space for the construction of the National Theater and the Türke Company of Grottau were installed in 1898.the town. According to historical evidence, less than the square in front of it. A new church was built for thea century had passed after the first appearance of the Franciscans on Libertăţii street. The Big Synagogue was built between 1899 and 1900Franciscan order in Transylvania, Hungarian Kingdom, At the beginning of the 18th century, one of the most at the initiative of the Jewish community “Status Quo”that the Franciscan friars arrived to Marosvásárhely. representative Baroque churches of Transylvania was and that was considered to be one of the most beauti-The building of the church took an entire century, from built in the town. St John the Baptist Church was erect- ful synagogues of the Austro-Hungarian Empire. Thethe middle of the 14th century until the middle of the ed in the North-Eastern part of the city center and be- design of the building was drawn up by Gartner Jacob15th and it consisted of a monastery building, an older longs to the Roman Catholic parish. The inside of the from Vienna and the construction works were coordi-chapel, the church and the steeple. The church was fi- church is luxurious, with liturgical objects that are true nated by the Hungarian Pál Soós. The entire edifice isnalized between 1400 and 1450. The church may have works of art. The main altar, made in 1755 by Anton dominated by the central cupola. Each side of the cen-been originally decorated with frescos, as traces of mu- Schuchbauer and Johannes Nachtigal is of monumen- tral spire is decorated with a floral rosette similar to theral paintings were found inside. The almost complete tal dimensions and has a pseudo-architectural struc- ones on the facade. This type of window is also useddisappearance of these paintings is due to the fact that ture. The paintings of the altars in the lateral chapels: several times on the lateral facades. The vast interior isthe church became the property of protestant believers Saint Ladislaus I of Hungary, Saint Joseph, Saint John of richly decorated, both with shapes and color. The syna- Page 16 Page 17
    • gogue has 314 seats on the ground floor and 238 on a Franciscan monastery. Overall, the library constitutesthe top floor. The most recent large scale remodeling a collection of most traditional types of Transylvanianof the building took place in 2000 when the walls were book.reinforced and the interior decoration was re-done. The old City Hall was built between 1906-1907 after the construction plans of Komor Marcell and JakabThe existence of the Unitarian faith in the town is linked Dezső. The entrance area, including the corridor andto the name of Ferenc Dávid, founder of Unitarianism the staircase leading to the first floor, is the most rep-and the first Unitarian bishop. The political circum- resentative in this regard. The ribbed stellar vaults thatstances in Transylvania became favourable for Ferenc cover this area were inspired by Gothic architecture.Dávid’s activity as the Diet of Torda held between 1557 The use of such vaults can only be explained by pure-and 1568 granted freedom of faith to all religions in ly esthetic reasons, as there is no practical argumentTransylvania. The Unitarianism became religio-recepta for this choice at the beginning of the 20th century.together with all the other Protestant faiths. The king The vaults are supported by columns with compositeof the state himself, John II Sigismund Zápolya became caps, and the keystone is a large floral shape whichUnitarian. The Unitarian Church was built between includes the lighting appliance. The vaults are painted1929 and 1930 next to the old Unitarian prayer house with spiraling vegetal motifs. One of the most spec-dating from 1869. tacular elements of the front hall is the stone bench with its legs shaped as those of an animal and withTourist attractions wing-shaped handles. Its shell-shaped, golden back has a shield flanked by two volutes on its upper side.The first fortress in the town was erected in 1492 upon The monumental staircase leading to the first floor alsoorder of Transylvanian voivode Stephen Báthory, and boasts some impressive elements such as the upperwas accomplished somewhere between 1602 and side of the banister resembling a slithering animal or1652 under judge Tamás Borsos. Having a pentagon a wave. The exterior decoration is simpler and is basedplan, surrounded by a defense wall, the Citadel has on Hungarian - Székely folk motives made of polychro-seven forts, five of them bearing the names of the guild matic ceramics. The ground floor is marked by a solid,which – according to tradition – supported its mainte- embossed pedestal. The empty and full areas on thenance: the leather dressers’, the tailors’, the butchers’, façade are rather well balanced, even though the win-the ironmongers’, the coopers’. After the Citadel was dows with large openings tend to be predominant. Thetaken over by the Austrian troops, it became the head- three semicircular windows in the middle area of thequarters of the military garrison based in the town. In facade are those of the honor hall that has a doublethe mean time the Baroque style building was built (on elevation with respect to the other rooms. The glass scenes and busts of Hungarians. The most impressive Educationthe left hand side of the road in front of the entrance paintings which illustrated Gábor Bethlen, Francis II composition is the mosaic on the main facade, an al-gate) and in the second half of the 18th century the Rákóczi, Lajos Kossuth, Ferenc Deák and Franz Joseph I legorical scene inspired by the Hungarian folklore. The Târgu Mureş is an important centre for general andconstruction works of the ‘barkey’ were started, an ad- of Austria are missing from the halls. cardboards were made by Nagy Sándor, an important higher education. The most important high schools aredition finished in the 19th century. On the occasion of Hungarian artist, who founded with Körösföy Kriesch the ,,Colegiul Naţional Alexandru Papiu Ilarian,, andthe Targu Mures days – which have as central point The Cultural Palace is a remarkable construction in the Aladár the School of Gödöllő. The art is characterized the hungarian speaking ,,Bolyai Farkas High School,,.of performance the Citadel – a museum center was city center. It was built upon initiative of the mayor of by bi-dimensionality and vertical rhythmicalness. Most The latter is a continuator of the traditions of the Scho-opened in the gate fort (erected in 1613) presenting the town, György Bernády. Building works started in of the mosaics and stained glass windows were au- la Particula, established in Târgu Mureş in 1557, andthe history of the town and of the Citadel. the spring of 1911. They contributed to the establish- thored by Róth Miksa, particularly those on the side of the Reformed College banished from Sárospatak at ment of the Hungarian secessionist architecture school facing Square. the beginning of the 18th century . The establishmentThe Teleki-Bolyai Library is a historic public library and in Transylvania by their works in Deva and Oradea. The was one of the first schools of the Reformed Churchcurrent museum in the town. One of the richest Tran- plan is an irregular rectangle, with protuberances on The Cornesti high (Somostető) - an excellent landscape in Transylvania, was first working in the old buildingsylvanian collections of cultural artefacts, it was found- the sides and at the extremities. The building has five of Târgu Mureş can be seen from here of the Franciscan monastery in the fortress, and haded by the Hungarian Count Sámuel Teleki in 1802, at floors: a tall ground floor, a mezanine and three floors Baranyai Decsi, Czimor Janos, Tordai Adam, Laskoithe time when Transylvania was part of the Habsburg diferentiated by the use of various construction materi- Politics Csokas Peter as teachers, as well as others. After be-Monarchy, and has been open to the reading public als. The facades are characterized by bi-dimensionality ing sacked in 1601 and 1602, the Schola was moved The local Municipal Assembly has 23 members divided into another building, on the place of the present highever since. It was among the first institutions of its and by a liniar-rectangular style, with only a few curvi- into 5 political parties: school. For centuries it had accommodated the Re-kind inside the Habsburg-ruled Kingdom of Hungary. It linear elements: the six bow-windows covered by semi-houses over 200,000 volumes, of which many are rari- caps above the main portal and the circular balconies formed College and the present high school. The pres-ties, constituting a comprehensive scientific database. on the edges. The main entrance is in the middle of Political Party Number of Seats ent aspect was acquired at the end of the 19th andThe book collection is divided into several smaller librar- the facade on Enescu street and is made up of four Democratic Union of Hungarians in Romania 10 the beginning of the 20th century. The main statue,ies, of which the two main donations are the original massive doors, protected by an architecural element facing Bolyai square was erected following the design Democratic Liberal Party 840,000-volume Teleki Library and the 80,000-volume made of glass and with an iron framing. This element, of architect Baumgarten Sandor in 1908-1909, in Hun-Bolyai Library; the rest, grouped as the Miscellaneous as well as the doors decorated with iron floral motifs National Liberal Party (Romania) 2 garian Secession style.Collection, is made up of several private libraries, vol- are typical for the 1900s style. The exterior is richly Social Democratic Party 2umes previously held by religious schools and those of decorated, with colored mosaic panels, with relieved Renowned universities like the University of Medicine Greater Romania Party 1 Page 18 Page 19
    • and Pharmacy, Petru Maior University and Sapientia start in the western part of the country near Iaşi, Mol- RADIOUniversity account for more than 10,000 students be- davia and will connect itself with A3. It is due to be Radio GaGatween them. The Sapientia – Hungarian University of completed in 2015. Twin towns — Sister citiesTransylvania is an institution of Hungarian higher edu- Radio 21cation in the historic region of Transylvania, Romania. The city is served by Târgu Mureş International Airport, Magic FM Târgu Mures has 9 twin towns and sister cities, as listedIts establishment was motivated by needs outgrowing which provides both domestic and international flights. below: Europa FMthe present choice of Hungarian university education in It was renovated in October 2005.Romania, especially that the percentage of Hungarianstudents in Romanian university life does not represent The city transport operators are S.C. Transport Local TV COUNTRY CITYthe percentage of Hungarian population in Romania, S.A., S.C. Siletina-Impex S.R.L. and S.C. TudorTransand university education in Hungarian does not cover S.R.L.. ªtii TV Germany Ilmenauthe range of necessary specializations. Other universi- Mureş/Maros TV Hungary Bajaties are the Theatre University, Dimitrie Cantemir Uni- Sports Erdélyi Magyar Televízió Hungary Kecskemétversity. The city is represented in many sports, including: foot- Televiziunea Română Târgu Mureş Hungary SzegedHealth Care ball, handball, basketball, volleyball and wushu. Realitatea TV Târgu Mureş Hungary Újbuda, Budapest Duna TV Marosvásárhely Hungary Zalaegerszeg Târgu Mureş is the home city of two football teams: FCM Târgu Mureş, which plays in Liga II, and Gaz Antena 1 Târgu Mureş Turkey Güzelçamlı Metan Târgu Mureş, who competes in Liga III. Prima TV Târgu Mureş United Kingdom Bournemouth ProTV Târgu Mureş United Kingdom East Renfrewshire Târgu Mureş is also known for its bowling team, Electromureş. The most important sport right now in the city is basketball, which is enjoying a huge audience with thousands of fans, with the team BC Mureş playing in the first division. They play their matches at the ,,Sala Sporturilor,,(Sports Arena in English).Târgu Mureş has a well-developed healthcare system.It consists of: Local media• 2 hospitals• A County hospital (the biggest in the county) with 11 WRITTEN MEDIAspecialized units Népújság• A Municipal hospital with 7 specialized units 24 de ore mureşene• 36 medical offices• 9 clinics Vásárhelyi Hírlap• Over 20 pharmacies Cuvântul liber• Ambulances and SMURD Zi de ziTransport Központ Ziarul de Mureş Infomaţia de Mureş Flash Piaţa Mureşeană Mediatica.ro EuroMaros.ro The text in the previous article was tak- kakukk.ro en from the public encyclopedia Wiki- pedia. Adress: http://wikipedia.org This update is accurate to the best of RADIO our knowledge at the time when thisTransylvania Motorway (also known as A3), which is overview was prepared. It is, however, Radio Târgu Mureş /Marosvásárhelyi Rádió meant as a general guide and comesdue to be completed in 2013, will pass near Târgu One FM with the recommendation that profes-Mureş. Another future highway that will be connected sional advice be sought before anywith the city is the East-West Motorway (A4), that will Kiss FM action is taken Page 20 Page 21
    • city is the Clock Tower, a 64m high tower built in 1556. It is today a museum of history. Other interesting sights are: • Sighişoara Citadel - a 12th Century Saxon edifice, is the historic center of the city. Still occupied, the citadel is listed as a World Heritage Site. • Clock Tower - Built in 1360 and standing at 60 me- ters tall atop the citadel hill. Inside is a museum that finishes in a great view from the top. • Weapon Museum - next to Vlad’s birthplace. Very small, but it contains an interesting selection of medi- eval weapons (swords, arrows, etc.). • Covered Staircase - a very old stone staircase with a wooden roof along the whole span. This leads up to the Church on the Hill and the cemetery. Sighisoara • Church on the Hill - contains many frescoes and a crypt. Built on the location of the Roman fort. Close to the cemetery on the side of the hill, which contains features of a craftsmen’s town. However, there are many German tombstones.Sighisoara is a city and municipality on the Târnava as Prince of Transylvania and King of Hungary in 1631. • Bust of Vlad Tepes - Located around the corner from some houses which belonged to the former patriciate,Mare River in Mureş County, Romania. Located in the Sighişoara suffered military occupation, fires, and his birthplace, within sight of the Clock Tower. like the Venetian House and the House with Antlers.historic region Transylvania, Sighişoara has a popula- plagues during the 17th and 18th centuries. Important Personalitiestion of 32,287 (2002). source for the history of the 17th century Transylva- “The House with Antlers” has been brought into the nia, for the period of 1606-1666, the records of Georg Twin Towns - Sister Cities possession of the Messerschmitt Foundation with theHistory Kraus, the town’s notary. help of the Romanian Government and the town coun- COUNTRY CITY cil of Sighisoara in April 2000, defrauding the legiti-During the 12th century, German craftsmen and mer- The nearby plain of Albeşti was the site of the Battle of Germany Dinkelsbühl, Bavaria mate heirs, the descendents Leicht-Bacon (with Englishchants known as the Transylvanian Saxons were invited Segesvár, where the revolutionary Hungarian army led roots), who are mentioned in the cadaster of Sighiso- Hungary Kiskunfélegyháza, Bács-Kiskunto Transylvania by the King of Hungary to settle and de- by Józef Bem was defeated by the Russian army led by ara as owners before the communist dispossession of Switzerland Baden, Aargaufend the frontier of his realm. The chronicler Krauss lists Luders on 31 July 1849. A monument was constructed 1950.a Saxon settlement in the actual Sighiṣoara by 1191. By in 1852 to the Russian general Skariatin, who died in France Blois, Loir-et-Cher1280 it was known by the Latin name of Castrum Sex, the battle. The Hungarian poet Sándor Petőfi is gener- Italy Citta di Castello, Perugia In 2001-2003 the construction of a Dracula themeand by 1298 by the Saxon name of Schespurch resp. ally believed to have been killed in the battle, and a park in the ‘Breite’ nature preserve near Sighişoara wasSchaesbrich. By 1337 Sighişoara had become a royal monument was constructed in his honor at Albeşti in considered but ultimately rejected, due to the strongcenter for the kings, who awarded the settlement ur- 1897. After World War I Sighişoara passed with Tran- opposition of local civil society groups and national andban status in 1367 as the Civitas de Segusvar. sylvania from Austria-Hungary to the Kingdom of Ro- international media as well as politically influential per- mania. sons, as the theme park would have detracted from theThe city played an important strategic and commercial medieval style of the city and would have destroyed therole at the edges of Central Europe for several cen- Central Sighişoara has preserved in an exemplary way nature preserve.turies. Sighişoara became one of the most important the features of a small medieval fortified city, it hascities of Transylvania, with artisans from throughout been listed by the UNESCO as a World Heritage Site. Demographicsthe Holy Roman Empire visiting the settlement. The Each year, a Medieval Festival takes place in the oldGerman artisans and craftsmen dominated the urban citadel in July. Ethnic groups:economy, as well as building the fortifications protect-ing it. It is estimated that during the 16th and the 17th View from Villa FrankaSighişoara is considered to be ROMANIANS (76.06%)centuries Sighişoara had as many as 15 guilds and 20 the most beautiful and well preserved inhabited citadel HUNGARIANS (18.36%)handicraft branches. The Baroque sculptor Elias Nicolai in Europe,[citation needed] with an authentic medievallived in the city. The Wallachian prince Vlad Dracul (fa- architecture. In Eastern Europe, Sighişoara is one of the ROMA (3.51%)ther of Vlad the Impaler (Dracula), who lived in exile in few fortified towns which are still inhabited. The town GERMANS (1.92%)the town, let minted coins in the city (otherwise coin- is made up of two parts. The medieval stronghold was OTHERSage was the monopoly of the Hungarian kings in the built on top of a hill and is known as the “Citadel”Kingdom of Hungary) and issued the first document (Cetate).The lower town lies in the valley of Târnava Sightslisting the city’s Romanian name, Sighişoara. Mare river. Sighişoara is a popular tourist destination, due to itsThe city was the setting for George I Rákóczi’s election The houses inside Sighişoara Citadel show the main well-preserved walled old town. The landmark of the Page 22 Page 23
    • Sighisoara, „the medieval jewel of Romania” awaits its visitors to uncover the mystery closed in the old walls during the hundreds years of existence. Placed in the heart of the country, Sighisoara has a key role as a point of intersection of main roads, and an important railway junction. In the middle of Târnava Mare Valley stands the Castle Hill, which descends on the town and is sur- rounded by higher hills like a real belt. These hills with forests, coating each season in other colors from snow white to rust autumn leaves make Sighisoara charm, which invites the travelers to make a stop to enjoy the view, peace and beautiful places, and for those who love hiking, outdoor sports or hunting - Sighisoara and enclosures offer excellent conditions. Over time, more or less famous personalities have worn steps on the narrow streets. Of these, the most important course is the son of Mircea the Old, Country Romanian prince - nicknamed Vlad Dracula - Member of the Order of the Dragon, who lived between 1431-1436 in the citadel of Sighisoara. Sighisoara is associated abroad behalf of one who was son of Vlad Dracul, the famous Vlad the Impaler, known as Dracula. It is assumed that Vlad had been born in Sighisoara, the former body guard house, where he hosted his father during the exile, which is now called “Vlad Dracul”. Today, the old city - with lofty towers and walls grim but hospitable that rises vertically for centuries to come, keeping its old walls caring polychrome houses generously described in recent chroniclers of the history of old times is known as the only one inhabited medieval citadel in Europe. Part of UNESCO World Heritage, Medieval Citadel Sighisoara is a magnet for tourists from around the world who come to discover the beauty described in chronicles and recreated in modern times in the most unexpected ways ... Local hospitality is transposed in many hotels, hostels and restaurants that welcome their guests with services at the highest quality standards.The text in the previous article was tak- One of our community’s objectives is the economic development of the city and attracting foreignen from the public encyclopedia Wiki- investors. Sighisoara Municipality offers investors a range of facilities such as very high tourismpedia. Adress: http://wikipedia.org potential, the old traditions in certain industries (textiles and ceramics), the existence of a well de-This update is accurate to the best of veloped manufacturing sector for clothing, the unemployment rate is relatively low, well-developedour knowledge at the time when this network of financial institutions and banking, technical and urban networks developed, good dy-overview was prepared. It is, however,meant as a general guide and comes namic economic indicators (turnover) for representative companies, support of local authorities.with the recommendation that profes-sional advice be sought before anyaction is taken Page 24 Page 25
    • Saxon Fortified Churchesof TransylvaniaTransylvania, a hilly region situated in the centre of Romania, represents a very special culturallandscape. Bearing the mark of a centuries long mingled life of the Romanians, Hungarians andGermans, it has a unique feature: nowhere else in the world are there to be found, preserved, insuch a narrow space, so many reinforced churches and fortress-churches, witnessing such a variedmaterial expression of the defence technique. The origin and development of church reinforce-ments are, undoubtedly linked to the troubled history of Transylvania, starting from the Tatar inva-sion, in 1241 - 1242, passing through the Turks’ repeated forays - from 1395 - to the devastatingMohacs defeat of 1526.All along those bleak years, the churches naturally did their best to protect themselves from theneverending wars waged around the principality of Transylvania until the beginning of the 18thcentury. The grographic density and, above all, the high number of these buildings - of which, over150 survived to this day - can be considered a phenomenon characteristic of the historical, legal,religious and social environment of those who built them: the Saxons of Transylvania. During oneof the many attempts of the Hungarian crown to occupy Transylvania, king Geza the 2nd (1141- 1161) decided to bring German colonists to the country, especially from the Cologne archdiocese,who later on would be called Saxons. After other immigrants came in, the colonisation of the pres- and Brasov. Soon afterwrds, the Turks trod Europe’s land for the first time and, as a result of aent Saxon localities would end with a few exceptions, before 1300. From a religious point of view, heavy Turkish invasion in 1491, all over the place, the defence constructions began and continuedthese communities were linked to the Saxon church. From 1542 to the Reformation, the Saxon to extend systematically.church of Transylvania - which had adopted the Augsbourg religion - preserved (and still does) thecharacteristic of a popular church. Bearing the print above all of the mediaeval fortresses, the art of stronghold building - as far as towns are concerned - was then transferred to fortress churches: the walls were raised, with anFrom 1542 to the Reformation, the Saxon church of Transylvania - which had adopted the Augs- open sentry road and reinforced by a row of entrenched towers. The gate was reinforced on thebourg religion - preserved (and still does) the characteristic of a popular church. In their native land, outside with supplementary entrenchments. Often a second or third precinct was built. The oldestthe colonists had already learned that, in wartime, it was better to leave one’s village and save one’s fortress churches dating from those ages can be found in Tara Birsei region. The churches built inlife and goods, by fleeing to the closest fortress . All that influenced their choice of the kind of plains were reinforced as they used to be protected only up to the west tower. The most importantcolony fit for the place for such a construction. The arable land was shared according to the Flem- entrenched church in Transylvania is the Prejmer one. This cross-shaped building , dating fromish system; the houses surrounded by gardens were arranged in tight rows and made up villages the early Gothic, was influenced by the Kerz Cistercian construction site; it was surrounded by 12along with streets, commons and squares; the churches stood in the centre of the village. In most metre high walls. These walls have a square round angle layout and are protected by stockades,cases, they were built on hills, which made them essy to reach and protect. This kind of gathering water ditches, four towers and two advanced reinforcements. Within this area, the constructionsup brought about the need for reinforcing the churches that were raised almost everywhere after supported by the precinct wall had three or four storeys; divided into 60 compartments, they hadthe Tatar invasion. In spite of subsequent profound changes, it is possible to reconstitute the aspect basements and 260 store houses. of church reinforcements, dating from the second half of the 13th century: almost all the basilicasfrom the colonisation times, as well as later constructions preserved massive towers, built under the The fortresses are very different in the other colonised regions where the natural features of the hillywest traverse of the central nave. These towers were built with sentry road and battlements, while landscape have been rightly used. One of the largest and most renowned fortress-churches is thethe access paths were protected by a precinct wall, with a trench and entrance tower. While the first Biertan one, standing on a hill, in the centre of the village. The hall church, with three naves, dat-entrenced churches were inspired by the mediaeval pattern of the knights’ strongholds, it seems ing from the late Gothic, was raised between 1500 and 1516, the preexistent chorus of the edificethat the Transylvanian pattern drew its inspiration from the counts’ fortified mansions. Among the having an entrenched storey. The precinct wall, dating from the same time, was reinforced duringlatter, only one, the Cilnic mansion in western Transylvania, lived through the centuries. Built in the 16th century with 8 towers; it is coil shaped, like a three tower belt, around the hill.1260, by count Chyl de Kelling, it includes a massive home-tower, with three storeys and a small The church preserved its furniture dating from the end of the Gothic age, including a complex altar.chapel, having a semicircular apse, and is surrounded by an oval precinct wall. In 1430, the counts’ One can still notice the frescoes dating fron the 16th century, on the southern tower of the innerdescendants decided to open it to the free community of the village, which, in its turn, enlarged precinct wall, as well as the tomb stones of several Saxon bishops. Since 1993 this fortress church,the stronghold with an outer precinct wall and a semicircular stronghold and raised in the inner as well as the access paths around it, is on the world heritage list drawn up by UNESCO. In thecourtyard supplementary walls, with constructions supported by the precinct wall. After an age of times when the Biertan chorus was reinforced, the religious buildings continued to be entrenchedunrest, Transylvania underwent a peaceful period and, under Louis the Great (1342 - 1382), the all over the place. A wide range of defence means and architectural grandeur were put to good useGerman colonies reached a fine economic boom. Architecture flourished rapidly and there began for raising the west tower and endowing it with three entrenched storeys. There is a second towerthe construction of the large churches of towns like Sebes, Cluj - Napoca, Sibiu, Sighisoara, Medias under the chorus or a side entrance. Page 26 Page 27
    • The lateral naves used to be demolished to better pro- tect the building.; stones and wooden beams were used for building entrenched storeys under the chorus or be- low the entire assembly of religious establishments, on consoles or flying buttresses, under abutments. The end of the 15th century stands for the last important stage in the history of fortress-church construction: in some places, after the old religious buidings belonging to the entrenched churches had been pulled down, new uni- tary churches were raised, made up of a single body of buildings, with entrenched storeys, supported on con- soles and flying buttresses between abutments; these fortresses used to have catapults and battlements. A bell tower, built separately, was included in the precinct wall. After an age of unrest, Transylvania underwent Reghin a peaceful period and, under Louis the Great (1342 - Reghin is a city and municipality in Mureş county in oldest Medieval Latin inscription of any church in Tran- 1382), the German colonies reached a fine economic Romania, on the Mureş River in Transylvania. It is the sylvania. The Hungarian part of the city has an evenboom. Architecture flourished rapidly and there began the construction of the large churches of place of origin of the Sasregen Hasidic Jewish dynasty. older church, initially built in the Romanesque style.towns like Sebes, Cluj - Napoca, Sibiu, Sighisoara, Medias and Brasov. Soon afterwrds, the Turks It had a population of approximately 35,700 in 2004.trod Europe’s land for the first time and, as a result of a heavy Turkish invasion in 1491, all over the At the beginning of the 15th century the settlementplace, the defence constructions began and continued to extend systematically. Bearing the print Location gained city rights, and, from 1427, the right to holdabove all of the mediaeval fortresses, the art of stronghold building - as far as towns are concerned fairs. In the 16th and 17th century Reghin was dev-- was then transferred to fortress churches: the walls were raised, with an open sentry road and Reghin lies 29 km north-northeast of Târgu Mureş, ex- astated by Habsburg and Ottoman troops on severalreinforced by a row of entrenched towers. The gate was reinforced on the outside with supplemen- tending on both shores of the Mureş River, at the con- occasions. It burned to the ground in 1848. In 1910,tary entrenchments. Often a second or third precinct was built. The oldest fortress churches dating fluence with the Gurghiu River. It was created by the the population of the city included 7,310 inhabitants,from those ages can be found in Tara Birsei region. The churches built in plains were reinforced 1926 union of the German-inhabited (formerly Szász- of which 2,994 were Germans (Transylvanian Saxons),as they used to be protected only up to the west tower. The most important entrenched church régen) and the Hungarian-inhabited (formerly Mag- 2,947 Hungarians, and 1,311 Romanians.in Transylvania is the Prejmer one. This cross-shaped building , dating from the early Gothic, was yarrégen) city, and later joined with the two smallerinfluenced by the Kerz Cistercian construction site; it was surrounded by 12 metre high walls. These communities of Apalina (Hungarian: Abafája; German: In 1920 Reghin was assigned to Romania by the Treatywalls have a square round angle layout and are protected by stockades, water ditches, four towers Bendorf) and Iernuţeni (Hungarian: Radnótfája; Ger- of Trianon, together with the rest of Transylvania. Inand two advanced reinforcements. Within this area, the constructions supported by the precinct man: Etschdorf), added in 1956. 1940, as result of the Second Vienna Award, the citywall had three or four storeys; divided into 60 compartments, they had basements and 260 store became part of Hungary, together with the North ofhouses. The fortresses are very different in the other colonised regions where the natural features of History Transylvania. Almost 30% of the inhabitants were Jewsthe hilly landscape have been rightly used. One of the largest and most renowned fortress-churches at that time. In May 1944, the Jews were gathered inis the Biertan one, standing on a hill, in the centre of the village. The hall church, with three naves, Reghin was first mentioned in 1228 in a charter of Hun- the ghetto of Reghin and on June 4, 1944 were de-dating from the late Gothic, was raised between 1500 and 1516, the preexistent chorus of the edi- garian King Andrew II as Regun - however, evidence of ported to Auschwitz. In 1945 the city again becamefice having an entrenched storey. The precinct wall, dating from the same time, was reinforced dur- its strategic location and defence system suggests that part of Romania.ing the 16th century with 8 towers; it is coil shaped, like a three tower belt, around the hill. Beside the town might have been considerably older, possiblytheir relevance as regards the study of fortified buildings, all churches bear witness for the history founded during by Ladislaus I. After World War II, Reghin lost some of its formerof art and architecture in central Europe and mediaeval Transylvania, marked by influences from Transylvanian Saxon character - as many Germans leftthe south of Germany, Bohemia and Austria , from the Roman age to late Gothic. The entrenched Despite the devastations of the city during the Mongol for Western Germany during the latter stages of Com-churches and fortress-churches are the most relevant Saxon legacy and the token of their fusion invasion (1241) and during the Tatar and Cuman incur- munist Romania - and ethnic Romanians were settledwith their own past. To point out the sig- sions (1285), the town developed rapidly: already in in their place. The data of the 1992 census showed anificance of the Saxon fortress-churches The text in the previous article was tak- en from the public encyclopedia Wiki- the second half of the 13th century the city was the population of 24,601 Romanians, 12,471 Hungarian,of Transylvania, a German- Romanian pedia. Adress: http://wikipedia.org residence and power centre of the families Tomaj and 1,790 Roma, and 346 Germans.team revealed the project to include on Kacsik, to whom the nearby lands were awarded bythe UNESCO world heritagelist some rep- This update is accurate to the best of our knowledge at the time when this the Hungarian Crown. Reghin became a minor ecclesi- Landmarksresentative examples of different kinds of overview was prepared. It is, however, astical centre in 1330, with the building of the Gothiccommunities, once German, including the meant as a general guide and comes church (Roman Catholic at the time, it now serves the Traditional German architectural heritage:villages: Cilnic, Valea Viilor, Saschiz, Viscri with the recommendation that profes- sional advice be sought before any Protestant community) in the German part of the city; • the Protestant (Lutheran) church, built in 1330 inand Prejmer (as at present only the Biertan action is taken it is still the largest church in the area, and hosts the honour of Saint Mary. Burnt down in 1708 and infortress- church is on the list). Page 28 Page 29
    • Sovata1848, after which it had been rebuilt. • Georg Maurer (19071971), writer Nestled and hidden valley in the Carpathian Moun- respiratory system. There are two other hotels in the• the Roman Catholic church, which was consecrated • Jutta Pallos-Schönauer (b.1925), Painter tains, lies the spa resort of Sovata. This is probably one beautiful spa resort Sovata, the two star spa hotel, Ho-in 1781. • Petru Maior (1756–1821), Writer and Educator of the most natural, un-spoilt regions left in Europe. tel Bradet and Hotel Faget. • Vasile Gliga, luthier and successful businessman Ancient forests, villages and folklore create a trulyTraditional Hungarian architectural heritage: • Viorel Frunza, miniature luthier magical atmosphere. This region is rich in mountainous Enjoy the soothing water of Lake Bear that is the only• the Protestant (Calvinist) church, 13th century, in scenery, untouched nature, farytale castles, turrets and lake whose exact date and time of dawn are known1910 completely rebuilt. Twin Town - Sister Cities churches. In addition there are some truly breathtaking for sure.• a Calvinist church built in 1890. geographical monuments, such as the Bicaz Canyon COUNTRY CITY and its sorrounding area. You can float easily on the surface of the water be-Traditional Romanian architectural heritage: Republic of Moldovan Ungheni cause of the high concentration of salt. Wander among• the Greek-Catholic church, built in 1744, nowadays Transylvania, the land the thermal ponds dotted around lake bear each pos-Romanian Orthodox. “beyond the forests” sesses different healing effect. You will spend extreme-• the Greek-Catholic church, built between 1811 and ly pleasant moments close to Sovata, in Parajd where1813, nowadays Romanian Orthodox. In the middle of Romania, Transylvania attracts with the underground playground and ecumenical chapel of high-roofed wooden churches, exceptional architec- the Salt Mine give shelter and healing for those withNew landmarks: ture and folk art, medieval towns, mysterious castles respiratory problems.• a Romanian Orthodox Cathedral was built in the city and a troubled history.in the 1990s.• the renowned zoological and folklore collections. You will be seduced by the countless beauty and won- ders, forested peaks, sweet waved valleys and sparklingDemographics streams of the Salt Land.Ethnic groups at the 2002 census: Secret of health, miracle of the nature ROMANIANS 23,611 (65.35%) Sovata – a spa for women, is best known for its great HUNGARIANS 10,396 (28.77%) results in therapy of gynaecological disorders due to ROMA 1,831 (5.06%) increasing fertility Sapropelic mud and extremely salty water of the heliothermal lake which have earned GERMANS 237 (0.65%) The text in the previous article was tak- The text in the previous article was tak- en from the public encyclopedia Wiki- Sovata a fame. Danubius Hotels offers 2 and 4 star en from the public encyclopedia Wiki- OTHERS pedia. Adress: http://wikipedia.org hotels in Sovata. Danubius Health Spa Resort Sovata pedia. Adress: http://wikipedia.org has a newly established health spa department. The This update is accurate to the best of This update is accurate to the best ofPersonalities our knowledge at the time when this hotel awaits clients, who are looking for healing and our knowledge at the time when this overview was prepared. It is, however, relaxation. Treatments in Sovata are indicated in case overview was prepared. It is, however,• Josef Haltrich (1822–1886), ethnographer, historian. meant as a general guide and comes of rheumatic and muscular disorders, rehabilitation meant as a general guide and comes with the recommendation that profes- with the recommendation that profes-• Ferenc Kós (b. 1828), writer sional advice be sought before any after accident, chronic inflammatory gynaecological sional advice be sought before any• Rudolf Wagner-Régeny (1903–1969), composer action is taken diseases, hormonal disorders, allergic problems of the action is taken Page 30 Page 31
    • Business travelingin Targu MuresIf you plan coming to Romania for business, you mightneed a fine place to stay. We suggest a place that’s eas-ily accessible by plane or by car;A place where your business, your image and yourhealth are taken care of in the finest manner; we sug-gest the President **** Hotel, in the city of TarguMures, right in the heart of Transylvania.On the European road that binds the city to other twomajor cities in Romania, Cluj – Napoca and Brasov, weare located less than five miles from the city’s interna-tional airport and minutes away from the railway station. Transfer to the hotel and back is providedby car or by bus for free.When it comes to picking a room, you can choose from 20 double rooms with marital bed, 52 twindouble rooms, 2 junior suites, 2 standard suites and 2 presidential suites.We appreciated the way the hotel strives to put time on your side; no matter where you stay, youget free high-speed wireless internet access, international phone lines or room service.Other “minor” amenities you’ll find included for every room are the air conditioning, LCD TV andTV cable, in-room seif, Jacuzzi and unique furnishing. Yes, that was correct, jacuzzi and uniquefurnishing available in every room.The hotel also provides a 24hours desk, concierge, drycleaning services, shoe shine, limo or towncaravailable with a driver.After seing the rooms and we took a look at the business center, and we were very impressed tofind the excellent conditions it offers for almost anytype of corporate event you may imagine.The three conference halls have a total capacity of over 400 seats and each one is fully equippedwith high quality sound sistem, projector, projection screen, flipchart, TV, DVD player and simultani-ous translation sistems.Manadas Conference Hall is the largest conference hall in Tirgu Mures and one of the largest inTransylvania, with a total capacity of 350 seats. The President conference Hall has a capacity of100 seats and the Mirrors Conference Hall, 30 seats.Beyond the conference halls, we have the President Trade center, which is one of the biggest exhibi-tion spaces in the region with almost 3.500 square meters surface.Thumbs for the parking space too. No need to worry where will your guests park as the parkingspace is ready to receive more than 200 cars, it’s free and it’s guarded 24/7.So weather you plan on organizing a large tradeshow, a conference with hundreds of people or justa smaller meeting for some of your partners, we believe these conference halls are made to suiteperfectly with everything it takes for your event to be a success.And when it comes to event we mustn’t forget the restaurants. We knew that Hotel President wasnotorious because of their most spacious ballrooms in the area and during our visited we clearlyunderstood why. Page 33
    • Manadas, President and Only Pink, dedicated to events, offering great services, both for corporate or private quests. The ballrooms are equipped with high quality sound systems and they are also air-conditioned. The chefs in cookery will offer their mastery to delight you with their specialties both in the Argentinean res- taurant – Steakhouse Manadas and the Italian one – Il Padre. Overall the restaurants can host almost 2.000 people. (Aici vad imagini din fiecare restaurant si apare in back-ground o imagine cu numarul de locuri al fiecarui restaurant) Steak House Manadas – 120 seats;Manadas Restaurant – 500 seats; President Restaurant – 500 seats; Only Pink Restaurant – 800seats.After your work is done for the day, imagine a special place where you can escape for at least a fewhours from phonecalls, emails, tight deadlines to enjoy a well deserved break.We introduce you to one of the most amazing locations in the area, Aqua Rock Spa - a 1.500square meters tropical lagoon right next to your workplace. We were delighted by the natural ambi-ence of rocky walls and caverns, with exotic vegetation.Within Aqua Rock Spa, you can enjoy Aqua Therapy area, with a 26 meters long, 12 meters wideand 1,6 – 2 meters deep pool. We also have a kids pool and two jacuzzi situated nearby the roundfireplace and in the rocky cavern.The Spa Zone suggests Finnish sauna, aroma therapy sauna, Roman bath, kneipp, Turkish bath– hamam, Scotish showers, basin sink after sauna, massage and relaxation, a fitness center andcromo-therapy chambers.But what we loved the most about Aqua Rock Spa is the Salt mine. 6 meters under ground level,composed of salt sauna and a salt cavern with two waterfalls. It has special therapeutic propertiesdue to the salt espacially brought from the Himalayan mountains in Pakistan. Now THAT is whatwe call relaxation.Afterwords, you can prolong your relaxation at the drink and food court –where you’ll find a bistrobar and a fine italian restaurant.The Hotel offer the visitors of our Spa the highest standard of confort and servicing, just like theydo in all the areas of their business.So feel free to pay them a visit. Weather it’s for your business trip, your health or your simple re-laxation, we believe The Hotel President has the amenities and luxury to make your staying therea wonderfull memory. This article represents our recommandation for visiting places in the area Page 3
    • Romanian String Section “Like people, each one is unique.” Instruments made in Italy in the 16th, 17th and 18th centuries by the legend- ary Amati, Guarneri and Stradivari families sell for mil- lions, even as musicians and dealers argue passionately about the superiority of originals over modern copies. The link between past and present is the special spruce and maple wood of the Transylvanian forests near the Gliga factory in Reghin. It is a resource so prized by violin makers that the nearby Gurghiului Valley is com- monly known as Italian valley, after the luthiers who are said to have journeyed there from Cremona, Italy, thehome of the masters, in search of perfect wood. According to Gliga, who grew up in the valley,the critical ingredient is the abundance of flamed maple (also called curly sycamore), the strikinglygrained wood of choice for the back of violins. More specifically, it’s an aberration normally foundin only one in a thousand sycamores, whose wavy fibers produce exceptional resonance. The Gligafactory has immediate access to this vital resource and in Vasile Gliga a keen and experienced eye.“When I see a log, I automatically know how many violins I can get out of it,” he says. Each stack ofspruce or maple is tagged with details of the year it was cut and the specific part of the instrumentin which it will be used. Wood is aged up to six years. As with fine wines, the final product achievesdepth and flavor with maturity.Communism’s contribution to Gliga’s success was the party’s inability to set up a violin factory inBucharest. The capital’s facility was closed, and Reghin became the only town in the country whereviolins were made. As a result, the experts are all still there. “Skilled workmanship imbues a violinwith special characteristics,” says Gliga. He believes the unique qualities of the local wood coupledwith the skill of his work force mean Gliga instruments can successfully compete with those beingmade by long-established European companies.There are, Gliga says, 200 steps involved in producing high-quality violins. Apart from the initialmillwork, Gliga violins are handmade with tools often fashioned by the artisans themselves for thedelicate shaping and carving of the instrument. Using teams of three or four people, each special-ized in one step of the process, the Gliga factory can maximize its output while maintaining highquality. That teamwork is a variation on the accepted manufacturing theme: purists argue that thefinest instruments are those made entirely by one master. Gliga says several people working to-gether actually add to a violin’s character: “The workers here are like one big family, so many soulsworking and feeling the wood — processing, carving, polishing, varnishing. I feel like a father tothem, and the violin is our newborn baby. Then, in the hands of a musician, it grows up.”There’s still a snob factor associated with violins, says Naomi Sadler, editor of the British magazineThe Strad. “It’s true that old Italian instruments are lovely, but some of the top makers today arealso producing incredibly good instruments,” she says. While most of the best players will useonly an original Cremonese masterpiece, at least one world-famous violinist was impressed by aGliga instrument. In a 1995 letter to Gliga, Yehudi Menuhin wrote, “Dear and very fine craftsman... I shall treasure the instrument you made ...” At his headquarters in Reghin, Gliga displays theMenuhin letter with pride, convinced that the reputation of Transylvania as a center of violin-mak-ing excellence will eventually be acknowledged. And that maybe then he will be able to return tohis workbench. Page 39
    • Transylvania International Airport Targu Mures,Transylvanian completes expansion programmeWinesThe importance of the Transylvanian wine-growing re-gion is not given by the actual extent of the vineyards,which barely reach 14,000 hectares, but by the qualityof the wines produced here, with particular noble andunique features, as well as by the enormous potentialof the area for viticultural expansion. Vine growing isfavored in these regions by a relief that seems to be spe-cially destined for such purpose, consisting of endlesshill slopes waiting to be covered with vineyards.Not long before, each Transylvanian settlement hadits own vineyards, perched even on steep slopes, withbeautifully aligned rows flowing from top to bottom.From the yard of his parents’ house in Lancram, the Transylvania’s international airport at Targu Mures has gateway to this beautiful historic area including the Szeklereyes of the child Lucian Blaga have been drawn by the recently completed major upgrade in faclities ready to assist the lands, the expanding city of Targu Mures and the close by“vine slope” on the eastern edge of the village. Most area’s development. medieval City of Sigisoarhra , the birthplace of Vlad Tepes ofof these plantations disappeared due to the collectiv- New international flights are expected to start soon to Dracula fame.ization, because – as they were located and planted complement the daily flights of Malev via Budapest and Tarom The late evening flight from Bucharest Henri Coanda airport via Bucharest to the world. Wizz Air fly to and from Budapest . is ideal for visitors to Romania who can spend time looking– only the vineyards’ owners could harvest them. Will Charter flights operate from Scandinavia and business aviation around Bucharest before flying to Transylvania . The return flightsuch garden-vines ever reappear around villages? Will is expanding. to Bucharest is early morning to connect with internationalthey ever reanimate the Transylvanian landscape? Let A flight training school is due to open in May as well as an air flights from Henri Coanda on Tarom and other internationalus hope so! It would be a shame if it were no longer taxi service. The airport, in the heart of Transylvania, is the airlines.possible.Five major vineyards are outlined on the current (andon the old) viticultural map of Transylvania. The Tar-nave vineyard classifies at the top of the list, with itswine-growing centers at Blaj, Jidvei, Medias, Tarnaveni,Zagar and Valea Nirajului. Its neighbor by location andsimilar by fame – is the Alba vineyard, dividing its vinesbetween the Alba-Iulia and Ighiu viticultural centers; a little to the south there is the Sebes-Apoldvineyard, while the Aiud one spreads to the north. Finally, located high up on the map, there isthe ancient Lechinta vineyard, with its famous viticultural centers at Lechinta, Teaca, Bistrita andBatos.The Transylvanian vines are by no means widespread, yet the wines obtained here – well known and We offer you a warm welcome to Transylvania.highly appreciated – have turned into products largely required for export and on the domestic mar- In the area around the airport there are good industrial,ket. Is there anyone who hasn’t experienced the Blaj and Jidvei wines or the Alba-Iulia and Apold commercial and residential investment opportunities.sparkling wines? Is there anyone left who hasn’t been thrilled by their outstanding qualities? For manufactures we offer low cost land complete with all services with payment over 5 years interest free.We are on a quest for these wines, treading with excitement on the way of Transylvanian vines. We Start up units in fully serviced accomodation and other assistanceshall depart from the center of the region, from the Tarnave vineyard; we shall pass through the in this key expanding area at the centre of the highway network.Alba and Aiud vineyards and end our journey up in the north, in the Lechinta vineyard. Of course, Great location for logistics and multinodal platform.this is not an exhaustive quest, but it is enough to get a glimpse of the viticulture in this area and Is it the right location for business. Visit and see for yourselfof the quality of its wines. Parc Industrial Mures the international manufacturing companies who chose this area. 547612 Vidrasau-Ungheni 1/G Mures, Residential land low cost and ready for development. Romania Tourism investment projects including joint venture. Te +40(0)265 433 620 We offer our clients full assistance from purchase Fax+40(0) 265 433 632 thru to completion of their project. Translation services in all major European Languages. Page 40
    • Health and wellness trip in Mures On our health and wellness trip though the region we couldn’t miss the Nova Vita medical center. The result of an investment that exceeds 10 mil Euros, Nova Vita is one of the best private hospitals in the country, offering medical services at international standards. The hospital is a very successful combination of the lat- est medical technologies, nationally appreciated doc- tors and excellent comfort. The main fields of treatment Nova Vita addresses are medical recovery and surgery. They also have a maternity ward, a pediatric section for newly born babies, oncology department and palliative treatment. What makes Nova Vita so special when it comes to recovery is, like we mentioned before, the state of the art technology, experienced doctors and great comfort. Targeted for neurologic, post traumatic and physical recovery, Nova Vita center has the equipment that helps identify very precisely the diagnostic and than deliver the exact intensity of treatment your body can manage. If the intensity of your treatment is too low, your recovery will slow down and if it’s too high your body will need time to rest from the intense recovery effort. This is why is so important to have the exact intensity correctly identified. Since Nova Vita is one of the very few private hospitals able to offer that, top performing athletes from all over the country visit the place as well. When it comes to comfort, the rooms are equipped with TV, air conditioning and bathrooms so that you will feel like in a home away from home. Beyond the modern technologies, fine doctors and great comfort another strong reason to visit the Nova Vita Center as a foreigner is the very accessible price comparing to the fees from the western countries. During our visit we had the opportunity to talk to several of the people behind this amazing medi- cal center. So if you are looking for top recovery medical services in comfortable conditions and affordable fees, it is our pleasure to recommend Nova Vita, a place that will make you feel brand new. This article represents our recommandation for visiting places in the area540052 Targu Mures, P-ta Victoriei, No 28-30, Mures Tel: +40 (0) 265 230289 Page 3wwww.transilvaniaturism.ro, E-mail: office@transilvaniaturism.ro
    • Mures Industrial Park The Industrial Park is set up on the Vidrasău platform (Ungheni village), 15 kilometers far from the center of Târgu Mureş municipality. Mureş County is located in Transylvania, in the center of Romania and it has good connections with Western Europe and the neighbor countries. The area of the region is 40,9 ha from which a part of 29,4 ha. is concessionable and is located in the immedi- ate vicinity of the major communication lines:• 2 kilometers far from the European Road E60 (DN15), in the immediate vicinity of the railroadTârgu Mureş - Războieni• neighbor with the Transilvania International Airport of Târgu Mureş. The airport has airlines to themajority of the European cities.(for ex. Budapest, Nuremberg, Barcelona, Thessaloniki, Dublin, Venice, Dortmund, Lion, Dusseldorf,Frankfurt, Hamburg, Roma, Milano, etc.).The capacity of the park consists of 42 separate units, each of them having theoretically 5.000-6000 sqm. Also, the park has the possibility to assure administrative support too.The infrastructure required for the Industrial Park is divided into two functional parts. The industrialregion contains the communication elements and the direct utilities for the producing units. Theadministrative and services region which generally helps the functioning of the park.a) The administrative and services region consists of:• Administrative building (offices for rent);• Heating plant and transformer station;• Water management and a water-storage tank of 500 m3;• Car park;b) The industrial zone contains the infrastructure necessary for carrying on the production activities,respectively:• Internal roads and detours;• Connecting the utilities to the park;• Internal network for utilities;• potable water at a flow of 80 m3/h;• natural gas with a flow of 1.680 m3/h in the first stage and 10.000 m3/h in the second stage;• electric energy, with maximum installed power of 3,2 MWA;• canalization of rain water, sewage and industrial waste water;• telecommunication through our own central office with 120 telephone lines;• Access road;• Treatment plant of the residual water resulted in the Park;• Circulation pump station for water, residual water and rain water;• System of hydrants;The object of the Industrial Park is attracting the technical featured, nonpolluting industry. In thisregard we follow the development of the production activities in the following industries:a) information technology; Page 45
    • b) electronics and telecommunication; help of an assessment/valuation form containing c) machines and equipments; criteria such as: technological level of investment, d) production of industrial components and subassem- value of investment, work places, the rapidity with blies; which it is made functional, experience and market e) food technology; of the investor – all these criteria shall have a deter- f) woodworking; minant role in the assessment procedure.The level g) light industry; of the royalty shall be established according to the h) services related to manufacturing activities; scores obtained and shall vary between a minimum i) other services characteristic for industrial parks; of 0.12 EUR/sqm/year and a maximum of 1.80 EUR/ The expected main results are: sqm/year.In this case the land cannot be purchased. • creating new jobs where an important ratio of these is o 2nd variant: the land is granted for the price of represented by highly qualified workers; 2.34 EUR/sqm/year, for a period of 5 years, and • attracting new technologies; thereafter it may be purchased at 11 Euro/sqm. • developing the sector of services; - Administration tax : 0,083 euro/sqm/month • improving the urban environmental condition by transferring some industries from these regions into the Support services included in the adminis- industrial park; tration fee, ensured by the park adminis- We must mention that the line of the future highway trationBraşov – Târgu Mureş – Cluj Napoca – Borş will pass near the Industrial Park, and it will be con- • Reception, info-point;nected with the intersection between the DN15 highway and the access road of the park. • Support for the readily information of the local public authorities concerning the grievances ofAll necessary infrastructures are provided on the platform, and it is predicted that the park will help the claim holder companies.improve of the local environment. Also, it is predicted that the park will attract the local industry, • Involve claim holders and lodgers in the park promotion and PR activities;reducing in this way the pollution of other regions. • Business club; • Advice and information for business development; • Facilitate contacts with the Academic Centre of Tîrgu Mureş;Administrating the Industrial Park • Facilitate organization of customs clearance procedure at place of residence;The possession of all realized infrastructures was transferred as collective property to the Mureş • Maintenance, road repairing, common green spaces and cleaning of public spaceCounty Council and the administration of these is done by the trading company „Parc Industrial • Public lightning of the environment as well as of access roads and footways;Mureş” S.A. • Guard and security of common areas and of the park perimeter, control of a register of vehicle traffic within the boundaries of the Mures Industrial ParkThe parcels from the Industrial Park will be let by lease for a period up to 49 years, period that can • Quick interventions to the installations of facilities located outside the perimeter of the lodger,be prolonged with other 25 years. The value of due is settled by the Parties through negotiations, except for major repairs agreed upon in the task log and set forth in a contract;complying with the effective legal regulations, respectively the minimum value of due is from 0.12 • Sewerage, storm management, wastewaters, maintenance and operation of a wastewater treat-to 1.8 Euro + VAT / sq.m / year. ment plant:If the investor is interested in buying the land, the lease is at the maximum value of 2,34 Euro/ sq.m./ • The right to use the conference hall in the administrative building four times a year, once peryear during 5 years, after this 5 years of lease he is entitled to buy the land at 11 euro/sqm trimester, including all the belonging equipment-i.e computer, audio-video system, public address system, video projectorFacilities provided for investors • Provide for an online news report of the main decisions concerning the activities carried on within the Mures Industrial Park, approved by the competent authorities and agencies in the field.• The opportunity of immediate occupancy of the parcels, the area of these can vary depending on • Facilitate access to services of customs commissioning, banking services and occupational healthneeds of investors; services within the boundaries of the industrial park.• Providing the complete support of infrastructure for the industrial activities, (access roads, watersupply, electric current supply, natural gas supply, sewage and telecommunication) at the limit of Irrespective of the variants chosen, the investor shall be in a win position.the industrial zone; Visit our website – contact– for further details, or better pay a visit to the industrial park.• The price of utility services is settled by the national suppliers;• Tax incentives: - Exemption from tax paid for destination change or for removing the land from the agricultural Restrictions sphere; The neighborhood of the flight-strip of International Airport Târgu Mureş requires some restrictions - Tax reduction provided by industrial parks: no taxes for land and no taxes for buildings, for all for the industries located in the Industrial Park; the most important are as follows: period of industrial park title. • The height of the buildings is limited to 10 m; - The two new concession possibilities, namely concession with diminished/low/reduced royalty • Industries, which can influence the security of aerial navigation by reducing the atmospheric and concession followed by the land’s sale, render the Industrial Park of Mures County the most visibility or by producing intensive electro-magnetic waves that could interfere with the control ap- desired industrial park in Romania: paratus of the air-traffic, are not admitted. o 1st variant: It has been decided that the concession means should be carried out with the Page 46 Page 47
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    • of the individuals or its foreign partners. micro enterprise revenue tax liability for the previous Non-resident companies are subject to tax on their fiscal year, in line with an inflation rate. Romanian-sourced income only. Sale of shares held in Representative offices are taxed on a yearly basis at a Romanian companies by non-resident companies, and lump sum of the RON equivalent of EUR 4,000, pay- sale of real estate located in Romania, are also subject able in two equal instalments, until 25th of June and to profits tax in Romania (see section on Capital gains 25th of December. tax). A permanent establishment in Romania may be con- 2.4 Capital gains tax stituted inter-alia by: an office, a branch, a factory, a No separate capital gains tax is payable by resident en- mine, land for oil and gas extraction, or a building site tities. Capital gains of non-resident entities from the that exists for a period exceeding six months. Also, a sale of immovable property in Romania, or from sale/ permanent establishment includes the place where an transfer of shares held in a Romanian legal entity, are activity continues using the assets and liabilities of a taxed at the standard corporate tax rate of 16%. Romanian legal entity undergoing a restructuring pro- During the period 1 January – 31 December 2009, cess (e.g. merger, spin-off). profits derived by non-resident legal entities from transactions with participation titles held in Romanian Romanian legal entities should register with the rel- companies and traded on the regulated market in Ro- evant tax authorities any contracts signed with non- Taxation in Romania mania were treated as non-taxable. resident legal entities or individuals performing in Ro- mania construction and assembly works, surveillance, 2.5 Dividends consultancy, technical assistance or any other activity Dividends paid by resident legal entities or by European1. Corporate taxes at a glance come from management and consulting services is tax- performed in Romania if such activities could give rise companies to their shareholders (i.e., Romanian legal able regardless of whether these services are rendered to a permanent establishment of the non-resident in entities, EU resident legal entities and legal entities from in Romania or abroad, if such income is obtained from Romania. The contracts should be registered by sub- Profits tax rate (%) or the minimum income tax 16 (a) the countries of the European Free Trade Association, a resident, or if it is a cost of a permanent establish- mitting a declaration within 30 days from the date they Capital gains tax rate (%) 16 (a) i.e. Iceland, Norway, and Lichtenstein) are exempt from ment in Romania. were concluded. The form and content of the respec- withholding tax in Romania, provided some conditions Branch tax rate (%) 16 (a) (f) Withholding tax applies to the proceeds from liqui- tive declaration is approved by order of the National are met, including the condition that the sharehold- dation of a Romanian legal entity. Agency of Fiscal Administration (ANAF). Withholding tax (%) (b) ers own a minimum 10% of the share capital of the (g) See section on determination of taxable income. The fine for non-compliance with the above registra- - Dividends 0/10/16 (c) tion requirements is RON 1,000 – RON 5,000. Romanian legal entity for an uninterrupted two years period ending at the date of dividend payment. Unless - Interest 0/10/16 (d) 2. Taxes on corporate income and gains 2.3 Rates of profits tax and the minimum tax the above conditions are met, a 10% tax rate applies - Royalties 0/10/16 (d) to dividends paid by resident entities to other resident The Fiscal Code came into effect on 1 January 2004. Starting from May 2009, taxpayers pay the higher of - Services 16 (e) the standard profits tax rate and the minimum quarter- entities, while a 16% tax rate applies to dividends paid The code has integrated key tax legislation and pro- ly/annually tax. The standard profits tax rate is 16%. to any non-resident legal entities (or a tax rate available - Commissions 16 vides the basis for a more stable framework of tax leg- The minimum annual tax ranges between RON 2,200 under a tax treaty, if favourable). - Entertainment and sports activities 16 islation by requiring amendments to follow a specific juridical route. – RON 43,000, depending on the level of total income Starting from 2010, under the Methodological Norms - Proceeds from liquidation 16 (f) derived in the previous year. for the application of the Fiscal Code, the dividends 2.1 Fiscal year The minimum tax does not apply in certain cases (e.g. distributed by the Romanian legal entities to voluntary - Branch remittance tax N/A In Romania, the fiscal year is the calendar year. to companies that are temporarily inactive). pension funds or to private pension funds are exempt Net operating losses (years) of dividend tax. Profits tax payable by companies earning revenues - Carry-back N/A 2.2 Profits tax from bars, nightclubs, discos, casinos and sports bets, Starting from 2010, in order to benefit of the more - Carry-forward 5 (7) (g) Resident entities as well as legal entities having their including revenues from an association agreement, favourable provisions of the double tax treaties and headquarters in Romania, but incorporated as per the is computed at the standard 16% rate, provided the the EU legislation, non-residents have to provide to the European legislation (i.e. European companies) are tax amount is not less than 5% of the total declared income payer a tax residency certificate as well as a(a) See section on profits tax. subject to tax on worldwide income. An entity is resi- revenue. In case the profits tax payable is below this statement on the fulfilment of the income beneficiary(b) The withholding taxes referred to above are levied dent in Romania if it is incorporated according to the threshold, the taxpayer is liable to pay profits tax com- condition.on income earned in Romania by non-resident individ- Romanian legislation, or its place of effective manage- puted at 5% of the declared revenue from such activi- If the condition of the shareholding period is fulfilleduals and legal entities (referred to below as “non-resi- ment is in Romania (for foreign legal persons), or if its ties. The minimum tax provisions mentioned above are at a later stage, the dividend beneficiary is entitled todents”), income that is not attributable to a Romanian headquarter is in Romania (for legal persons incorpo- not applicable to these taxpayers. exemption and may request reimbursement of the taxpermanent establishment of the non-resident income rated as per the European legislation). Starting from 2010, the Romanian Ministry of Finance withheld in Romania.recipient. did not set the percentage of tax to be applied to the Dividends paid by a Romanian entity to individual share- Associations or consortia between Romanian legal en-(c) See section on dividends. revenues earned by micro enterprises. Thus, the com- holders are subject to a 16% withholding tax rate. tities, which do not qualify as legal persons, are taxable(d) See section on withholding tax. panies that used the micro enterprise taxation regime Dividends reinvested beginning with 2009 with the in Romania separately at the level of each partner. For(e) Withholding tax generally applies to services ren- will become subject of the standard profits taxation. purpose of securing and creating new jobs for the busi- such associations between a Romanian legal entity anddered in Romania, except for international transport In this respect, companies that were taxed under the ness development of the Romanian legal entities are individuals or foreign entities, the tax must be com-and services related to such transport. However, in- micro enterprise regime are required to make quarterly exempt from dividend tax. puted and paid by the Romanian legal entity on behalf anticipated payments amounting to one quarter of the Page 52 Page 53
    • Dividends invested in the share capital of another Ro- when the respective assets are taken out of the pat- • Research and development expenses that do not agement and administrative personnel, limited to onemanian legal entity in order to create new jobs or aim- rimony. meet the recognition criteria as intangible assets from car per person anding at the development of its activities are exempt from an accounting perspective • Additional allowance amounting to 20% of eligibledividend tax. 2.8 Determination of taxable profit • Expenses for the improvement of management, of costs for research and development activities (quarter-The procedure to apply the above provisions on rein- Starting point for determining taxable profit information systems, for the implementation, mainte- ly/annual computation)vested dividends should have been detailed into an The taxable profit is computed as the difference be- nance and improvement of quality management sys- Key expenses which are non-deductible include, interOrder of the Ministry of Finance which to date has not tween the revenues from all sources, including the tems, for the acquisition of certificates attesting quality alia:been issued. delivery of goods and the supply of services, and the standards • Romanian and foreign profits tax (a tax credit is al-Payments made by a Romanian legal entity to any of expenses incurred for purpose of earning the income in • Expenses for the protection of environment and con- lowed for taxes paid in other countries – see the For-its shareholders for goods or services provided by the a fiscal year, minus the non-taxable revenues, plus the servation of resources eign tax relief section)latter, in excess of the market value of the transaction, non-deductible expenses. • Expenses related to losses made by companies when • Sponsorship expenses (a tax credit is allowed forare assimilated to dividends from a tax point of view. The following revenues are considered as non-taxable: writing off doubtful or disputed uncollected receivables sponsorship expenses on meeting certain conditionsThe same tax treatment applies to payments made for • Dividends received by a Romanian entity from an- in case of bankruptcy of the debtor (based on a final – see the Sponsorship section)the supply of goods and services used for personal pur- other Romanian legal entity. Dividends received from court decision), as well as in other cases such as death • Late payment interest, penalties, and fines paid toposes by the company’s shareholders or associates. a non-resident (except for EU resident entities, under of the debtor (when the receivable cannot be collected Romanian or foreign authoritiesThe dividend tax must be withheld and paid to the certain conditions) are taxable (see also the Foreign tax from the heirs) or liquidation in case no successor ex- • Expenses with inventory or tangible assets that arestate budget by the 25th of the month following the relief and Dividends sections) ists and when the debtor has major financial difficulties missing from stock or that are damaged and non-payment of dividend. In case of dividends distributed, • Gains in the value of the participation titles held in that affect its entire patrimony and chargeable, for which no insurance contracts werewhich were not effectively paid by the end of the year, other entities, registered further to the increase of capi- • Registration fees, dues, and contributions owed to concluded, including the corresponding VAT as appli-the dividend tax must be paid by 25 January of the tal in those entities through incorporation of reserves, commercial chambers, unions, and owners’ associa- cablefollowing year. profits or issue premiums as well as gains from the val- tions • VAT on goods given to employees as benefits in kind, uation of the participation titles and long-term bonds, Key items which are partially deductible include, inter if the value of such goods was not taxed at employees’2.6 Foreign tax relief carried out according to accounting regulations alia: levelForeign income of Romanian entities is included in tax- • Revenues from the reversal of non-deductible ex- • Provision expenses and contribution to reserve funds • Any expenses made in favour of shareholders or as-able income. This includes passive income as well as penses and provisions for which no deduction was al- within specified limits (see the Provisions and reserves sociates, other than those generated by payments forcapital gains. However, a credit is allowed for foreign lowed section) goods provided or services rendered at the markettaxes paid, up to the level of the Romanian tax on that • Non-taxable income, expressly provided by specific • Protocol and entertainment expenses (e.g., gifts to valueincome. regulations and clients, business lunches), up to 2% of the adjusted ac- • Insurance premiums that are not related to the tax-Dividends received from EU resident entities constitute • During the period 1 January 2009 - 31 December counting profit for the protocol expenses before tax payer’s assets or its business scope, except for thosenon-taxable income at the level of the Romanian recipi- 2009, income derived from transactions with participa- • Daily allowances for domestic and foreign travel ex- relating to rented or leased assets or assets used as col-ent, if the Romanian beneficiary of dividends holds at tion titles traded on the regulated market in Romania penses up to the level of 2.5 times the ceiling set for lateral for a business-related loanleast 10% of the shares of the EU entity for an uninter- Deductions public institutions • Insurance premiums and other employment-relatedrupted period of minimum two years. As a general rule, expenses incurred for the purpose of • Social expenses (i.e., birth, death, incurable disease expenses that are not taxable at the level of the em- earning taxable revenues, including those regulated by support, expenses aimed at the proper functioning of ployee2.7 Tax exemption on reinvested profit legal norms, are considered deductible for the profits certain units or activities of taxpayers, e.g., kindergar- • Expenses related to non-taxable income with certainThe profits invested by taxpayers in the production tax computation. tens, health units, canteens, sports clubs, sponsorship exceptionsand/or acquisition of technological equipments used The Fiscal Code also provides for certain types of ex- for schools, as well as gifts in cash or in kind granted on • Service expenses, including management and consul-for deriving taxable income is exempt from profits tax, penses that are specifically deductible, including: Christmas to the employees’ underage children, gifts in tancy expenses, for which their provision for businessshould the respective equipments be maintained in the • Contributions for insurance against labour accidents cash or in kind granted to the female employees, the purposes cannot be supported by written contractspatrimony of the taxpayer at least half of the assets’ and occupational illness and expenses with insurance cost for the supplies for treatment and rest of own em- and documentsnormal useful life. premiums for insurance against professional risks ployees) currently up to 2% of the personnel costs • Losses in the value of shares held in other entities,The profits tax exemption applies for new assets, i.e. • Advertising and publicity expenses for the promo- • Expenses for meal vouchers, granted according to except for losses made by selling such shares (the ex-which were not subject to prior use, and is granted up tion of business, products and/or services, if properly the law ception does not apply for shares held in Romanianto the value of the profits tax due for that period. documented, as well as expenses with other goods and • Perishables within the limits provided by govern- companies traded on the regulated market during 1In the cases where further to the application of this ex- services provided with the view to boost sales ment-approved norms January – 31 December 2009)emption, the profits tax is lower than the minimum tax, • Transport and accommodation expenses in Romania • Interest expenses and foreign exchange differences • Contributions paid in excess of the legal limits orthe taxpayers are liable for paying such minimum tax. and abroad incurred by employees and directors as within the limits described in the Thin capitalisation those that are not regulated by legal normsThe profits tax exemption is applicable up to 31 De- well as by other individuals assimilated to them rules section • Expenses related to the decrease in the value of fixedcember 2010. • Subscription fees, dues and other mandatory contri- • Expenses on behalf of employees in relation to op- assets upon revaluationThe amount of profit covered by the profits tax exemp- butions, as provided by legal norms tional occupational pension schemes, within the limit • Losses recorded when writing off uncollected bad ortion shall be mainly distributed for the set-up of re- • Contributions to the fund for the negotiation of the of the RON equivalent of EUR 400/ employee during litigious receivables, for the part that is not covered byserves until reaching the amount of accounting profit collective labour contract a fiscal year a provision andfor the financial year (if the case).The tax value or the • Expenses associated with vocational and professional • Voluntary health insurance premiums within the limit • During the period 1 May 2009 – 31 December 2010,entry value of equipments produced/acquired shall be training of employees of the RON equivalent of EUR 250/ participant during fuel expenses related to vehicles (except for certain sit-reduced with the amount covered by the profits tax • Marketing expenses, market research, promotion a fiscal year uations specifically mentioned under law, for vehiclesexemption. In conclusion, the profits tax exemption is expenses in existing or new markets, participations in • Expenses for the operation, maintenance or repair, used for e.g. paid transportation services, rental activi-only a deferral of the profits tax, up to the moment fairs and exhibitions, business trips excluding fuel expenses related to cars used by man- ties, security services, repairs, sales activities) Page 54 Page 55
    • Sponsorship (including subsidiaries of foreign banks), leasing com- operations. 2.10 Transfer pricingTaxpayers incurring sponsorship expenses in accor- panies (for leasing operations), and other legal entities Capital contributions in exchange of shares are not According to domestic tax legislation, transactionsdance with relevant legislation are entitled to a tax allowed to grant loans according to the law are not considered taxable transfers. The tax value of the as- between related parties must be carried out in accor-credit (i.e., deduction from the profits tax payable of subject to the thin capitalization rules. sets received as contribution is equal to the tax value of dance with the arm’s length principle (i.e., transactionsan amount equal to the sponsorship expense) if the Deductibility of interest expenses incurred by financial these assets when held by the contributor. At the same should be carried out at the same price as if concludedfollowing conditions are cumulatively fulfilled: institutions is not limited based on the above-men- time, the tax value of shares received by the contribu- between non-related parties). The methods for the• Sponsorship expenses do not exceed 0.3% of turn- tioned rules. tor equals the tax value of the contributed assets. assessment of market value include the Comparableover and Tax depreciation Asset distribution by a Romanian legal entity to its Uncontrolled Price Method, the Cost Plus Method, the• Sponsorship expenses do not exceed 20% of the Three alternative methods are available for the compu- shareholders, either as dividend or following liquida- Resale Price Method, and any other method recog-profits tax liability tation of tax depreciation, namely: tion, is taxable, except in case of: nized by the transfer pricing guidelines issued by theProvisions and reserves • Straight-line depreciation • Merger of two or more Romanian legal entities, Organization for Economic Cooperation and Develop-Under the existing regulations, the following provisions • Reducing balance depreciation and whereby the shareholders of merging entities receive ment (OECD).and reserves are deductible for profits tax purposes: • Accelerated depreciation (for equipment and pat- shares in the resulting entity According to the Romanian legislation, taxpayers in-• Contributions to the legal reserve fund, generally up ents) • Split of a Romanian legal entity, whereby sharehold- volved in transactions with related parties should pres-to 5% of the adjusted annual accounting profits be- These methods must be followed consistently. ers receive proportional stakes in the resulting entities ent, upon tax authorities’ request, a transfer pricingfore tax, till the reserve fund reaches 20% of the share Buildings can be depreciated only on the straight-line • Acquisition of all assets and liabilities pertaining to file, whose content is approved by ANAF Order. Thecapital method. Land is not a depreciable asset. one or more Romanian legal entities by another Roma- deadline for presentation of the file is a maximum of• Bad debt provisions, if certain conditions are met From a tax perspective, the law prescribes the concept nian entity only in exchange of shares and three months and may be extended only once for the• Provisions for quality performance guarantees grant- of “useful lives”, which are provided by Government • Acquisition by a Romanian legal entity of at least 50% same period. Failure to present the file allows the taxed to clients Decision, as follows: of shares in another Romanian entity, in exchange of its authorities to impose a certain level of transfer pricing• Specific provisions created by credit institutions, non- own shares, and, as the case may be, for a cash pay- using a simplified methodology.banking financial institutions registered in the NBR ASSET YEARS ment not exceeding 10% of the nominal value of the It is possible for the taxpayer to apply for an advanceGeneral Register, as provided by the laws governing Buildings and constructions (e.g., roads and fences) 8 to 60 newly issued shares pricing agreement with the authorities that would inthese entities, as well as specific provisions created by In the above-mentioned cases, the following rules ap- theory eliminate the risk of an adverse transfer pric- Machinery and equipment 2 to 24similar legal entities ply: ing assessment, as long as the taxpayer respects the• Technical reserves set by insurance and reinsurance Furniture, fittings, and protection 2 to 24 • Transfers of assets and liabilities and exchange of terms and conditions of such agreement over its valid-companies, as provided by the relevant regulatory Vehicles 3 to 9 shares held in one Romanian entity with the shares in ity period.laws, except for the equalization reserve and another Romanian entity are not taxable• Risk provisions for financial market operations, as • In the split of a Romanian legal entity, the distribution 2.11 Relief for lossesprovided by the regulations of the National Securities The useful life for each type of asset is provided as an of shares is not treated as dividend payment Tax losses posted starting with 2009 may be carriedCommission (CNVM) interval. Upon commissioning, the taxpayer is allowed • Tax value of assets/liabilities for the receiver equals forward for the following 7 years and are not updatedThin capitalization rules to choose a useful life within such an interval. the tax value of the same items for the transferor for inflation purposes. Tax losses before 2009 may beUsually, interest expenses incurred by companies (other Patents, licenses, author rights, know-how, manufac- • Tax depreciation for assets continues in the same carried forward over a period of only 5 years.than credit institutions) are subject to the following turer’s brands, trademarks, as well as other similar in- manner as before the transfer Loss carry-forward is not available for entities thatlimitations: dustrial and commercial property rights, development • Transfer of provisions/reserves is not taxable if the re- cease to exist as a result of a split or merger. The carry-• Debt-equity ratio – interest expenses are fully deduct- expenses, considered as intangible assets from an ac- ceiver takes them over and maintains them at the same back of losses is not permitted.ible if the debt-equity ratio is not higher than three. counting perspective, are depreciated over the period value as before the transferIn case such ratio is higher or is negative, interest ex- provided for their utilization or the contractual period, • In a share exchange (as mentioned at the first point 2.12 Tax consolidationpenses are non-deductible for profits tax purposes and as the case may be. Goodwill is not considered a de- above), the tax value of shares received equals the tax The legislation for the consolidation of companies iscan be carried forward until they are fully deductible preciable asset for tax purposes. value of the shares transferred and at an early stage of development, and until now onlyunder the same conditions and Equipment intended for research and development ac- • In a split, the tax value of shares held before the the consolidation for accounting purposes has been• Interest expenses for loans granted by companies tivities may be depreciated using also the accelerated distribution is allocated between these shares and dis- regulated. There is no provision in the legislation onother than financial institutions are deductible based depreciation method. tributed shares proportionally with their market value consolidation for profits tax purposes.on the following limits: Up to 30 April 2009, revaluations of fixed assets, per- immediately after the distribution• The reference interest rate of the NBR relating to the formed in accordance with the accounting regulations, Starting 1 January 2007, similar principles apply to 2.13 Filing tax returnslast month of the quarter, for loans denominated in were taken into account for tax purposes (except reval- cross-border reorganizations, as a result of the imple- Taxpayers are required to file profits tax returns andRON or uations of entirely depreciated fixed assets made after mentation of the EU Merger Directive in the Romanian pay profits tax quarterly by the 25th of the month fol-• The annual interest rate of 8%, on loans in foreign 1 January 2004). As of 1 May 2009, the tax revalua- Fiscal Code. Under the Directive, cross-border business lowing the quarter for which the computation is made.currencies (the threshold was established for 2009 fis- tion of assets is effectively eliminated, as revaluation reorganizations (i.e., mergers, spin-offs, transfers of The final annual tax return should be filed by 25th Aprilcal year, but it can be updated based on Government reserves are taxable for corporate income tax purposes assets and exchange of shares) between different EU of the following year. As an exception, certain catego-Decision) proportionally with the deduction of the incremental member states should be tax neutral subject to certain ries of taxpayers are required to pay profits tax by 25thThe difference between foreign exchange losses and tax depreciation, respectively upon the disposal of the conditions. February of the following year, while other categoriesforeign exchange revenues relating to long-term loans revalued fixed assets. However, the tax loss of the transferring entity could of taxpayers (e.g. taxpayers that finalise the year-end(over one year) is treated as interest expense and is sub- not be taken over by the Romanian permanent estab- closing by 25th of February of the following year) mayject to the debt-equity ratio limitation (see above). 2.9 Reorganization, liquidation, other transfers lishment of the receiving entity. submit the profits tax returns and pay the related taxInterest expenses as well as foreign exchange differ- Under the domestic legislation, the below mentioned by the same date.ences related to loans obtained from Romanian banks principles apply in relation to business reorganization Legal entities ceasing to exist during the course of the Page 56 Page 57
    • year need to file the final annual tax return and pay the banks and other authorized lending institutions from Development, the International Monetary Fund, and registered as VAT payers will have to register withinprofits tax by the date of submission of the financial Romania, set up or acquired between 4 June 2005 and the European Investment Bank. 10 days from the end of the month, during which thestatements to the Trade Registry. 31 December 2005, is subject to a withholding tax rate The exemption applies also in the case of non-resident above threshold was reached or exceeded.A taxableBanks and branches of foreign banks in Romania are of 10%. For interest income related to term deposits, entities earning income from consulting services based person having the place of business outside Romaniarequired to pay quarterly profits tax in advance, based deposit certificates, and other savings instruments pro- on non-reimbursable financing agreements signed be- but established in Romania via a fixed establishmenton inflation-adjusted past-year tax results. vided by banks and other authorized lending institu- tween the Romanian government and foreign govern- is required to register for VAT purposes in Romania (i)The other profits tax payers will apply this system start- tions from Romania, set up or acquired after 1 January ments or organizations. before receiving services from taxable persons estab-ing from 2012. 2006, a 16% withholding tax rate is applicable. The withholding tax must be paid to the state budget lished in another Member State in whose respect he is Interest income derived from Romania (e.g. from term by the 25th of the month following the one in which liable to pay VAT (general B2B rule), (ii) before supply3. Withholding taxes deposits and/or other saving instruments) by non-resi- payment was made. of services from that fixed establishment to a benefi- dent individuals (irrespective of whether they are EU The withholding tax for dividends distributed but not ciary, taxable person established in another MemberWithholding tax is applicable on a number of payments or non-EU residents) is exempt from withholding tax paid to the shareholders until the end of the year in State, in whose respect the beneficiary is required tomade by Romanian tax residents to non-resident re- in Romania. which the annual financial statements have been ap- pay VAT, (iii) before e.g. performance from that fixedcipients. The following income types are not taxable: proved must be declared and paid by the 25th of Janu- establishment of activities which are taxable and/or ex-Types of payments which are subject to withholding tax • Income obtained by non-resident collective invest- ary of the following year. empt with credit.are presented in the table below. ment bodies (without corporate status) from the trans- Companies are required to file an annual withholding A taxable person having the place of business in Roma- fer of securities held directly or indirectly in a Romanian tax return until 30 June of the year following the rel- nia, but not registered for VAT yet, is required to regis- TYPE OF PAYMENT WHT RATE (%) legal entity evant tax year. ter for VAT purposes before supply / receipt of services Royalties (see explanations below) 0/10/16 • Income earned by non-residents from transfer of de- Romania has signed over 85 agreements since the to / from taxable persons established in other Member rivative instruments 1970s for the avoidance of double taxation, which may States in whose respect the beneficiary is liable to pay Interest (see explanations below) 0/10/16 • Income derived by non-residents on foreign capital reduce the applicable withholding tax rate. VAT (general B2B rule). Commissions 16 markets from transfer of participations and other secu- In order to apply the more beneficial provisions of a Until January 2012, VAT tax groups may be formed only Dividends (see explanations below) 0/10/16 rities issued by Romanian residents treaty, the income beneficiary has to provide a certifi- by taxable persons deemed as large taxpayers. The VAT The following categories of interest derived by non- cate of tax residence issued by the foreign tax author- tax groups do not have the meaning defined by the EU Various services 16 residents are not subject to withholding tax: ity. The domestic law does not allow application of VAT Directive, but, in Romania the members of such a Gambling income 20 • Interest income on on-sight deposits and current ac- double tax treaties in case of net-of-tax arrangements group could only offset their VAT payable/refundable counts when it is the Romanian payer of income, and not the positions (with impact on the VAT cash flow).Under certain conditions, an exemption is available for • Interest related to public debt instruments in RON beneficiary, that bears the tax. VAT representativedividends paid to companies incorporated in the EU, as and in foreign currency and revenues from the trade of In order to apply the more beneficial provisions of the Taxable persons that are established in the Communitywell as in the European Free Trade Association (‘EFTA’) State bonds and debentures issued by local authorities, EU legislation, the non-resident has to provide to the (but outside Romania), and obliged to pay Romaniancountries (see the Dividends section). in RON and in foreign currency, on the domestic and income payer (beside the tax residence certificate) also VAT (for certain transactions and provided they do notUnder the EU Interest & Royalties Directive implement- foreign capital market, as well as interest related to in- an own liability statement indicating the fulfillment of give rise to a fixed establishment in Romania), have toed in the Fiscal Code, interest/royalty payments made struments issued by the National Bank of Romania for the beneficiary requirements. register directly or appoint a fiscal representative forby a resident legal entity to an EU or EFTA resident legal monetary policy purposes and revenues from the trade VAT purposes to fulfill their VAT obligations in Roma-entity or to an EU or EFTA permanent establishment of of securities issued by the National Bank of Romania 4. Value added tax (VAT) nia. If the person liable to pay tax is a taxable personan EU or EFTA resident company are exempt from with- • Interest on debt instruments/titles issued by Roma- who is not established in the Community, such a per-holding tax in Romania if inter-alia the beneficiary holds nian companies, if the debt instruments/titles are trad- 4.1 Regime son is required to appoint a tax representative as thea minimum 25% of the share capital of the domestic ed on a regulated securities market and the interest is The Romanian VAT system is harmonized with EU VAT person liable to pay tax. Under certain cases, if the for-legal entity for an uninterrupted two-year period at the paid to a person that is not a related party of the issuer Directive. eign taxable person does not register for VAT purposes,date of the payment. The Directive was incorporated in of the debt instrument/title the VAT liability shifts, in principle, to the Romanianthe Fiscal Code with a transition period lasting until 31 • Interest and/or dividends paid to pension funds, as 4.2 Taxable persons beneficiary of the supply (under the reverse-chargeDecember 2010 during which the withholding tax rate they are defined according to the legislation of the EU General mechanism).for interest/royalty will be 10%. If the above conditions Member States or of the EFTA States Any person supplying taxable goods or services in theare not met, the 16% tax rate applies to interest/roy- Under the EU Savings Directive, savings incomes paid course of business on a regular basis is considered a 4.3 Taxable operationsalty payments made to EU resident legal entities (or a to EU resident individuals are exempt from withholding taxable person. The term “business” refers to all in- Transactions subject to VAT refer to the supply of goodstax rate available under a tax treaty, if favorable). tax in Romania subject to certain conditions. dependently carried out activities of producers, traders and services, import of goods, and intra-CommunityIf the shareholding period condition is fulfilled at a later Incomes received by non-residents from consulting and suppliers of services. acquisitions of goods. To be taxable in Romania, a sup-stage, the beneficiary would be entitled to an exemp- and assistance services based on contracts financed by Taxable persons established in Romania with an annual ply must cumulatively meet certain requirements (e.g.tion and may request a reimbursement of the with- international financing bodies, with which Romanian turnover exceeding EUR 35,000 are required to regis- it is made for consideration, the place of the transac-holding tax paid. state authorities or Romanian legal entities have signed ter for VAT purposes. Persons not meeting the above- tion is in Romania).Also, generally a reimbursement could be requested financing agreements, are not subject to withholding mentioned turnover criterion may also register for VAT Supply of goodsby the non-resident or the beneficiary of income re- tax if the interest rate charged for such financing is less purposes. Supply of goods refers to the actual transfer of thespectively in case of tax withheld in excess of the rates than 3% per year. The registration may be performed before carrying out right to dispose as owner of the goods from one per-imposed by the tax treaties or the EU legislation, re- The qualifying entities are the European Bank for Re- any taxable and/or exempt with right of deduction op- son to another against payment, directly or through anspectively. construction and Development, the International Bank erations (by opting for registration or by declaring an intermediary.Interest income related to term deposits, deposit cer- for Reconstruction and Development, the International envisaged turnover higher than the registration thresh- As a rule, a supply of goods has the place of supplytificates and other savings instruments provided by Finance Corporation, the Association for International old upon starting the activity). Persons that were not where the goods are located at the moment when Page 58 Page 59
    • the delivery takes place — with certain exceptions for eral rule, be recovered in the same VAT return to the Fiscal Code, such as sale of medicines, hotel accommo- letters for equivalent amounts .goods to be transported, installed, delivered on board extent of the beneficiary’s right to deduct VAT. dation, books, tickets for museums, cinemas, etc. For low tax risk claims, VAT refund should be per-of ships, aircraft, trains, and for distance sales — pro- • 5% reduced rate, which is applicable to supplies of formed without a tax audit or documentary analysisvided certain conditions are met. 4.4 Simplified recording of VAT social housing, including related land (certain condi- and in a shorter period of time. However, in the above-Supply of services For certain supplies (e.g., waste and scrap materials, tions have to be fulfilled for applying this provision) mentioned cases, the respective taxpayers would beThe place of supply of services to a taxable person act- wooden material), a simplified VAT mechanism is appli- nevertheless subject to a subsequent VAT audit.ing as such is the place where the person receiving the cable, provided that both the seller and the purchaser 4.8 Exempt operations A taxable person established in the Community thatservices has established the place of business. If servic- are registered as VAT payers in Romania. Supplies within the scope of VAT are classified as tax- is not registered or liable to register for VAT purposeses are supplied to a fixed establishment of the taxable Under this mechanism, the purchaser has to simultane- able operations and exempt operations. in Romania may request a refund of VAT paid in Ro-person, located in a place other than the place where ously recognize the related VAT, both as an output and Exempt operations are divided as follows: mania.he has established the place of business, the place of input VAT in the return of the respective month, with- • Exempt supplies with credit for input tax (e.g., ex- A taxable person not established in the Communitysupply of services is the place where the fixed estab- out any cash flow implications (provided the purchaser emption for intra-Community supplies of goods under that is not registered or liable to register for VAT pur-lishment of the person receiving the services is located has a full right to deduct VAT). certain conditions, exports and other similar supplies, poses in Romania may request the refund of the VAT paid if, under the laws of its country of establishment,(general B2B rule). international transportation, as well as specific exemp- a taxable person established in Romania has the sameThe place of supply of services to a non-taxable person 4.5 Specific VAT schemes and simplification rules tions related to international traffic of goods, etc.) right in that country.is the place where the supplier has established the seat Romania adopted in the national legislation simplifica- • Exempt supplies without credit for input tax (e.g., Taxable persons established in or outside the EU canof business. If services are supplied from a fixed estab- tion rules referring, inter alia, to healthcare services, educational services, financial and claim a VAT refund if the application refers to a pe-lishment of the supplier, located in a place other than • Triangulation transactions banking services, supply of immovable property, except riod:where the person has established the seat of business, • Consignment/call-off-stock for new buildings, lease and renting of immovable • Less than a calendar year but not less than threethe place of supply of services is the place where that • Multipartite transactions within the Community re- property with certain exceptions) months; the amount requested for reimbursementfixed establishment is situated (general B2B rule). lated to works on movable tangible property • Exemption for import and intra-Community acqui- cannot be less than the RON equivalent of EUR 400There are a few derogations from the general rule con- • Repairs during the guarantee period sitions of goods whose local supplies are exempted, • Equal to a calendar year or the remaining period ofcerning the place of supply of services (e.g. services in • Returns of goods within the Community etc. a calendar year; the amount requested for reimburse-connection with immovable property, cultural, artis- Also, a series of special VAT schemes are applicable, The Fiscal Code provides specific rules on goods ben- ment cannot be less than the RON equivalent of EURtic, services passenger transport, etc). Also, Romania such as: efiting from special customs regimes. The following 50implemented the place of use and enjoyment rule for • Special scheme for small undertakings transactions are VAT exempt with credit for input tax:certain services supplied to taxable persons established • Special scheme for travel agents • Supply of goods placed under a bonded warehouse 4.10 Invoicingin third countries (e.g. services to tangible movable • Special scheme for second-hand goods customs procedure Documents or messages, both electronic and hard copyproperty, local transport of goods). • Special scheme for investment gold, etc. • Goods introduced in free zones versions, are accepted by the Romanian authorities ifThe term “services” applies to all transactions not • Goods under an inward processing procedure, etc. they meet the requirements provided by the Romaniantreated as supply of goods. 4.6 Taxable base Fiscal Code in respect of form and content of invoices.Import of goods VAT is assessed on the total amount received or to be 4.9 Credit for input VAT Moreover, any document that specifically and withoutGoods brought from outside the Community and in- received by the supplier as consideration for the supply General rule ambiguities modifies or refers to an initial invoice willtroduced into EU territory in Romania are considered of goods or services; this includes taxes, commissions, Carrying out taxable supplies allows offsetting output be considered as invoice.to be imports and fall within the scope of VAT with packaging, transport and insurance expenses. Certain VAT against input VAT. Exempt supplies do not allow Taxable persons supplying goods or services shouldcertain exceptions (i.e., entry of goods under a qualify- elements such as price discounts are not included in the recovery of input VAT, except in the case of VAT generally issue invoices by the 15th of the month fol-ing customs duty suspension procedure). the taxable base. exempt supplies with credit, for which input VAT can lowing the one in which the chargeable event occurs,Intra-Community acquisition of goods As of 1 May 2009, the VAT related to the acquisition be recovered. Companies performing both taxable unless the invoice has already been issued.Intra-Community acquisition of goods means acqui- of motorized road vehicles, as well as the one related transactions and exempt transactions without creditsition of the right to dispose, as owner, of movable, to the acquisition of fuel for the vehicles, owned or shall deduct VAT based on the direct allocation method 4.11 Payment and filing requirementstangible property dispatched or transported to the des- used by taxpayers (provided they meet certain criteria), and pro rata mechanism. VAT deduction is allowed also Taxpayers must file VAT returns with the tax authori- ties and pay VAT on a monthly basis, specifying thetination indicated by or on behalf of the purchaser or is generally non-deductible. The rule applies until 31 based on invoices sent by electronic means which com- taxable amount and the tax due. The tax return mustthe supplier to Romania from another EU member state December 2010, with certain exceptions (vehicles used ply with certain conditions. be filed and the respective VAT paid by the 25th of thefrom which the goods are dispatched or transported. for commercial/resale purposes, used for paid passen- Refund of VAT following month. In case of taxpayers whose annual“Reverse-charge” VAT ger transport including taxi, the ones used for supply If the input VAT exceeds the output VAT, the recover- turnover is less than EUR 100,000 and who carry outIn case of taxable intra-Community acquisitions, cer- of services against consideration, for interventions, se- able balance VAT (defined as “negative VAT balance”) no intra-Community acquisition of goods, VAT returnstain acquisitions of goods/services and imports (if the curity and protection, etc.) in case of finance lease of may be: should be filed with the tax authorities on a quarterlypostponement certificate is obtained by the taxable such vehicles a VAT deduction on lease installments is • Carried forward to the next period basis and VAT shall be paid quarterly.persons registered for VAT purposes performing such allowed, in principle. • Refunded by the tax authorities, based on the option A VAT recapitulative statement should be filed withoperations), for which the “place of supply” is deemed expressed by the taxpayer in the VAT return. The op- the tax authorities on a monthly basis on or beforeto be in Romania, the law imposes the application 4.7 Tax rates tion can be exercised only for a negative VAT balance the 15th day of the following month. Such statementof the so-called VAT “reverse-charge” mechanism by The following rates apply in Romania: exceeding RON 5,000 should comprise: intra-Community supplies of goodsthe Romanian beneficiary provided certain conditions • 19% standard rate, which is applicable to supplies of Starting February 2010, VAT returns with refund elec- exempt from VAT, intra-Community acquisitions of(which vary for different operations) are met. goods and services not subject to VAT exemptions or tion for at most RON 10,000 are by default assigned goods for which the beneficiary is obliged to pay VAT,Under the reverse-charge mechanism, the beneficiaries to the reduced rate low tax risk. Also, large taxpayers may decrease the and acquisitions as part of operations within the trian-must recognize the related output VAT in their return • 9% reduced rate, which is applicable to the supplies tax risk assigned to their VAT refund claims from high gulation scheme, as well as acquisitions and supplies offor the respective month. The input VAT may, as a gen- of certain goods/services specifically enumerated in the to low (with some exceptions) by filing bank guarantee intra-Community services taxed based on the general Page 60 Page 61
    • B2B rule. customs value of goods. Other taxes, duties and levies where goods may be stored under certain conditions. goods introduced into the Community upon marriage,Taxpayers should also submit a declaration of all sup- may be required to be paid upon import in addition to The customs warehousing procedure allows the stor- inherited goods, as well as goods shipped between in-plies/acquisitions of goods/services taking place in Ro- customs duties, such as excise duty, VAT, etc. age in a customs warehouse of the following: dividuals.mania to/from other taxable persons registered for VAT The CCC and its Implementing Regulations include • Non-Community goods, without such goods being Goods from the personal luggage of travelers broughtpurposes in Romania. The declaration should be sub- new rules and provisions in respect of the status of subject to import duties or commercial policy mea- into EU without commercial purposes may be exemptmitted on a half-yearly basis, by the 25th of the month the goods, customs valuation, amendment of customs sures from customs duty. The customs duties, VAT and excisefollowing the end of semester. declarations, binding origin information and binding • Community goods, where Community legislation duties exemption can be granted up to a total valueCompanies registered for VAT purposes in Romania, tariff information, quota administration system, etc. governing specific fields provides that their placement of EUR 430 per traveler for air and sea travellers andhaving deliveries of goods to/arrivals of goods from in a customs warehouse attracts the application of up to a total value of EUR 300 per traveller for otherother EU member states which exceed an annual 5.2 Establishing the customs value of goods measures normally used for export of such goods travelers.amount of RON 900,000/RON 300,000 are obliged to Where the goods to be imported into Romania as from The inward processing procedure provides non-Com- For certain goods, such exemption is granted withinsubmit INTRASTAT declarations on a monthly basis. the Accession date will be subject to a sale, the cus- munity goods intended for re-export from the terri- the following quantity limits: toms value should be based generally on the sale price tory of the Community in the form of compensating Tobacco products:5. Community customs legislation increased with certain other costs that may have been products, without application of import duties or com- • 40 cigarettes incurred with purchasing the goods (e.g., insurance, mercial policy measures. This specific procedure is also • 100 cigarillos (cigarillos are cigars of a maximumCouncil Regulation (EEC) No. 2913/92, establishing the transport, commissions, royalty and license fees). applicable to goods released for free circulation with weight of 3 grams each)Community Customs Code (CCC), and Commission The cost of (i) transport and insurance of the imported repayment or remission of import duties chargeable on • 50 cigarsRegulation (EEC) No. 2454/93, laying down provisions goods, and (ii) loading and handling charges associated such goods if they are exported from the territory of • 250 grams smoking tobaccofor implementation of CCC, have become directly ap- with the transport of the imported goods to the place the Community as compensatory products. Alcohol and alcoholic beverages:plicable in Romania as from the accession date (i.e., 1 of entering into the customs territory of the Commu- Processing under customs control procedure allows • a total of 1 litre of alcohol and alcoholic beverages ofJanuary 2007). nity shall be added to the price actually paid or payable non-Community goods to be used in the territory of an alcoholic strength exceeding 22% vol, or un-dena- by the importer when declaring the customs value of the Community in operations which alter their nature tured ethyl alcohol of 80% vol and over, orAs of 1 July 2009, the persons who perform activities the goods, to the extent that they are incurred by the or state, without application of import duties or com- • a total of 2 litres of alcoholic beverages of an alco-which are regulated by the customs legislation must buyer but are not included in the price actually paid or mercial policy measures, and shall allow the products holic strength not exceeding 22% vol;register for customs purposes. payable for the goods. resulting from such operations to be released for free • a total of 4 litres of still wine, andAlso, the statute of authorized economic operator may circulation at the rate of import duty appropriate to • 16 litres of beerbe granted upon request under certain conditions. The 5.3 Customs procedures them. The duty exemption mentioned above for tobacco andrespective statute concedes certain administrative in- As provided by the Community Customs regulations, The temporary admission procedure allows the use alcoholic beverages does not apply for travelers undercentives to its holder. the goods may be placed under one of the customs in the customs territory of the Community, with total 17 years. procedures, as follows: or partial relief from import duties and without them5.1 Common customs tariff • Release of goods for free circulation being subject to commercial policy measures, of non- 6. Excise dutyThe specific customs duties payable upon releasing the • Transit Community goods intended for re-export without hav-goods into free circulation, are established based on • Customs warehousing ing undergone any change except normal depreciation Excise duty is a consumption tax payable on certainthe Community Customs Tariff (adopted for each year • Inward processing due to their use. categories of goods including alcoholic beverages, gas-by the Commission) and related preferential tariff mea- • Processing under customs control The outward processing allows Community goods to oline, tobacco products, coffee, electricity and certainsures. There is an online EU customs tariff database • Temporary admission be exported temporarily from the customs territory of other items. The tax is payable on import and sales of(TARIC) which comprises the following: • Outward processing the Community in order to undergo processing opera- locally produced items on the domestic market and is• The combined nomenclature of goods • Exportation tions and the products resulting from those operations set as fixed EUR amount per unit (“specific excises”) or• The rates and other items of charge normally appli- • Free warehouse to be released for free circulation, with total or partial as a percentage of a specified taxable base.cable to goods covered by the combined nomencla- • Free zone relief from import duties. The excise duties in respect to the main categories ofture, as regards customs duties and import charges laid The release for free circulation confers non-Communi- The export allows Community goods to leave the cus- goods are given in EUR in the table below:down under the common agricultural policy, or under ty goods the status of Community goods. This means toms territory and entails the application of exit for-the specific arrangements applicable to certain goods that the customs duties and charges have been paid malities, including commercial policy measures. EXERCISE DUTY RATES VALIDresulting from the processing of agricultural products and, as a result, the goods may freely move within the Free zones and free warehouses are parts of the cus- CATEGORY OF PRODUCTS FOR 2010• The preferential tariff measures contained in agree- territory of the European Community from a customs toms territory of the Community or premises situated Alcoholic products up to EUR 750 per hlments which the European Community has concluded perspective. in that territory and separated from the rest of it inwith certain countries or groups of countries and which The specific customs procedures suspending the pay- which non-Community goods are considered, for the Cigarettes EUR 48.5/1,000 cigarettes + 22% of the declared maximum retail priceprovide for the granting of preferential tariff treat- ment of the import duties are generally subject to au- purpose of import duties and commercial policy importment thorization from the customs authorities. measures, as not being on Community customs terri- Coffee EUR 153-EUR 900 per ton• Preferential tariff measures adopted unilaterally by The transit procedure allows the movement of non- tory, provided they are not released for free circulation Car fuel EUR 347-EUR 547 per tonthe European Community in respect of certain coun- Community goods from one point to another within or placed under another customs procedure or used or Electricity EUR 0.5 or EUR 1/MWhtries, groups of countries, or territories the customs Community territory, without such goods consumed under conditions other than those provided• Autonomous suspensive measures providing for a being subject to import duties and other charges or for in customs regulations.reduction in, or relief from, import duties chargeable to commercial policy measures for a certain period of Taxpayers are normally required to submit monthly taxon certain goods time. Certain Community goods meant for export 5.4 Customs regime for individuals returns and pay the excise duties for excisable goods by• Other tariff measures provided for by other Commu- could also be placed under the transit procedure. Customs regulations provide for specific customs duty the 25th of the following month, with certain excep-nity legislation A customs warehouse is any place approved by, and treatment for the personal belongings of individuals tions. In case of imported goods, the related exciseCustoms duties are expressed as a percentage of the under the supervision of, the customs authorities establishing domicile or residence in the Community, duty, if applicable, should be paid at the time of mak- Page 62 Page 63
    • ing import declaration at customs. in Romania, regardless of their residence. The tax rate lic performances at a rate of between 2% and 5% of 9.2 TaxpayersA special supervision and control system is provided for ranges between 0.10% and 0.20% for individuals and revenues, or a fixed fee depending on the surface area Individuals liable to income tax fall into the followingthe production and distribution of excisable goods. between 0.25% and 1.50% for legal entities. For of the premises. The show tax is payable monthly, in two categories:A specific reimbursement procedure for harmonized buildings not revaluated three years prior to the con- arrears by the 15th of the month following the per- • Residents, Romanian individuals domiciled in Roma-excise duties based on fiscal risk analysis is available for cerned year, the tax payable by legal entities may vary formance. nia for income obtained from any source, both fromsupplies of certain excisable goods. between 5% and 10%. The tax is applied to the value Romania and abroad, and residents other than Roma- of the building (established values are provided) for in- 7.8 Other local taxes nian individuals domiciled in Romania - only for Roma-6.1 Fiscal warehouse regime dividuals and to the book value of the building for legal The local councils may impose a daily fee for temporary nian-sourced income;The fiscal warehouse regime allows the production, entities. The tax must be paid annually, in two equal use of public places and for admissions to museums, • Non-residents, who either:transformation and/or storage of products subject instalments by 31 March and 30 September. memorials, or historical, architectural, and archaeologi- - Carry out independent activities through a perma-to harmonized excise duties (e.g., beer, wines, other cal monuments, and also for the ownership or use of nent establishment in Romania, for the net incomefermented beverages, intermediary products, ethyl 7.2 Land tax equipment that is held for the purpose of obtaining attributable to the permanent establishment, oralcohol, tobacco products, mineral oils) without the Land tax is payable by owners of land. Generally, the income using public infrastructure, as well as fees for - Carry out dependent activities in Romania, for thepayment of related excise duties. Generally, the fis- tax is established as a fixed amount per hectare, de- activities with an impact on the environment. net income from such dependent activities, orcal warehouse regime cannot be used for retail sale of pending on the location of the land within certain de- - Earn other types of incomesuch products. termined zones, towns or villages and depending on 8. Stamp duty If a non-resident individual complies with the secondThe Fiscal Code allows production (and storage) of land use. The tax is payable annually, in two equal in- or third condition, mentioned in the Residence sectionelectricity and natural gas outside fiscal warehouses. stallments, by 31 March and 30 September. Stamp duty is payable on most judicial claims, issue of above, for a period of three consecutive years, he/she certificates and licenses, and documentary transactions becomes subject to taxation on worldwide income6.2 Excise duty suspension regime 7.3 Vehicle tax which require authentication. starting from the fourth year. Until the end of theIn certain condition, the excisable goods could be Vehicle tax is payable by owners of land/water vehicles, There are two types of stamp duty, which include the three year period, the respective individual is subjectmoved under an excise duty suspension regime within which should be registered in Romania. The tax de- following: to Romanian income tax only for Romanian-sourcedthe territory of the Community. The movement of the pends on the engine capacity or vehicle characteristics • Judicial stamp duty income.excisable goods under the suspension of excise duty (e.g. number of axles, suspension system, weight, etc.). • Extra-judicial stamp duty Individuals who are tax residents in countries that havemust be covered by an administrative document. The tax is payable annually, in two equal installments, Judicial stamp duty is levied on claims and requests signed double tax treaties with Romania may benefitThe paper document that previously accompanied the by 31 March and 30 September. filed with courts and the Ministry of Justice, depending from a reduced tax rate or a tax exemption under themovement of the excisable goods under the suspen- on the value of the claim. Quantifiable claims are taxed terms of the respective treaties. Individuals who aresion of duty (the Administrative Accompanying Docu- 7.4 Tax for construction authorizations under the regressive tax mechanism. Non-quantifi- tax residents in countries that have not entered into ament or AAD) was replaced with an electronic message The tax is established as a percentage on the construc- able claims are taxed at fixed amount levels. A judicial double tax treaty with Romania may become subjectfrom the consignor to the consignee, certified by the tion value and is payable upon obtaining the construc- stamp duty may also be levied at the transfer of real to Romanian taxation from the first day of presenceauthorities of the Member States involved. tion authorization. estate property under certain circumstances. in Romania.For this purposes, a computerised system for monitor- Extra-judicial stamp duty is charged for the issue ofing movements of the harmonised excisable goods 7.5 Publicity and advertising tax various certifications such as identity cards, car regis- 9.3 Categories of income subject to taxationunder suspension excise duty within the Community, Advertising tax is payable by the 10th of each month trations, etc. A flat income tax rate of 16% applies to the followingnamed EMCS (Excise Movement and Control System) during the execution of the contract by the suppliers of categories of income:was implemented starting with 1 April 2010. For publicity and advertising services rendered in Romania, 9. Individual taxation • Income from independent activitiesmovements of excisable goods under the suspension except for publicity and advertising services through • Salary incomeof duty on the Romanian territory, the component audio, video and the print medium. The tax rate is Romanian citizens domiciled in Romania are considered • Rental incomeEMCS - RO of the computerized system is used. established by the local councils and ranges between to be Romanian tax residents and are taxed in Romania • Pension income 1% and 3%. It is applied to the value of the publicity on their worldwide income. Foreigners and Romanian • Prizes • Agricultural income7. Local taxes and advertising services. Users of outdoor advertising individuals without a Romanian domicile may be sub- • Other income must pay an outdoor media advertising tax computed ject to taxation in Romania on worldwide income un-Local taxes in Romania are regulated by the Fiscal as a fixed amount established by the local councils per der certain circumstances. The Fiscal Code provides special tax rates in case of in-Code. Local taxes represent a distinct category of taxes square meter, depending on the surface used for ad- come obtained from investments, gambling, and trans-set by the local administration, which are payable by vertising. Such tax should be paid in four equal instal- 9.1 Residence fer of real estate from personal patrimony.both individuals and entities in Romania. ments by 15 March, 15 June, 15 September and 15 An individual is considered to be a Romanian tax resi-The local councils may annually increase local taxes November. dent if he/she fulfils at least one of the following con- 9.4 Employment incomeover the level established for any local tax provided by ditions: Taxable compensation includes salaries, benefits inthe Fiscal Code up to 20%, with a few exceptions. 7.6 Resort tax • Individual is domiciled in Romania cash or in kind, wage premiums, rewards, temporaryThe legislation also provides for some exemptions, for The tax is payable by individuals over 18 years for their • Individual’s centre of vital interest is located in Ro- disability payments, paid holidays, and any other in-example local councils may grant building and land tax stay in resorts and is included in the accommodation mania come received by an individual based on an employ-exemptions to legal entities, provided these are in line tariff. The tax rate is established by local councils and • Individual is present in Romania for a period or pe- ment agreement. Taxable compensation also includeswith the state aid legislation. ranges between 0.5% and 5% on the accommoda- riods exceeding in aggregate183 days during the 12 compensation received by daily or temporary workers,These local taxes include: tion tariff. months to the end of the calendar year concerned fees and compensation paid to directors and manag- • Individual is a Romanian citizen working abroad as an ers of private commercial companies, to members of7.1 Building tax 7.7 Show tax employee of the Romanian state. the board of directors and General Shareholders Meet-Building tax is payable by owners of buildings located Show tax is payable by individuals and entities for pub- ing, to members of the administration council, and to Page 64 Page 65
    • members of the audit committee. obligation. Income from all types of independent ac- of interest other than the following exempt incomes: the following month. The final tax of 16% is computedFor employment income, the taxable amount is de- tivities is subject to an annual regularization, which is • Interest from current account/on-sight deposits by the taxpayer when filing the annual tax return.termined by deducting the following from the gross performed by applying a 16% tax rate to the annual • Interest from on term deposits and saving instru-income: taxable income, less carried forward tax losses (if any) ments realized starting with 1 January 2009 9.10 Income from pensions• Mandatory social security contributions for a period of five consecutive years. • Interest related to debt instruments and municipal Income from pensions comprises any amount received• Personal deductions allowed, if any Taxpayers who earn income from independent activi- bonds in form of pension from funds created from manda-• Monthly trade union contribution ties, for which 10% advance income tax is withheld The tax rate applicable to interest income is 16%, and tory social contributions made to a social insurance sys-• Contribution to the voluntary occupational pension at source, can choose for final taxation with 16% at is calculated, withheld and paid by the payer of interest tem. Income from pensions includes any amount fromscheme (up to EUR 400 per year) source. Final taxation is allowed also for income from by the 25th of the month following the interest pay- optional occupational pension schemes and those fi- intellectual property rights, sale of goods in consign- ment. The interest tax represents a final tax. nanced by the state budget. Monthly pension income9.5 Income from independent activities ment, commercial mandate, agent, commission agree- The withholding tax applied to interest income earned of up to RON 1,000 is not taxable. The tax is final, andIncome from independent activities includes the fol- ments, accounting, technical, legal expertise (allowed by non-resident individuals, as per the domestic legisla- is to be determined by levying 16% on the taxablelowing: before only for income paid based on civil services tion, is 16% or a more favorable rate if a double tax amount. The tax computed for pension is withheld on• Income from commercial/freelance activities agreements). treaty is applicable. the date of actual payment of the pension and remit-• Income from intellectual property rights Gains from transfer of securities ted to the state budget by the 25th of the followingIncome from commercial/freelance activities 9.7 Rental income Capital gain represents the positive difference between month.The net taxable income from commercial/freelance Gross rental income consists of amounts in cash or in the sale price and the purchase price of different types The withholding of tax on income from pensions isactivities is computed as gross income less specified kind stipulated in the rental agreements and related to of securities, reduced by related costs, as the case may not applicable in case of individuals with severe dis-deductible expenses that may be subject to certain lim- a fiscal year (regardless of the time of effective cash- be. In case of transfer of shares in a limited liability abilities.its. Individuals authorized as freelancers are obliged to ing), as well as certain expenses borne by the tenant company, the capital gain represents the difference be-maintain single entry books. and which, based on the law, are the landlord’s liabil- tween the sale price and the nominal value/purchase 9.11 Income from agricultural activitiesAlternatively, income earned by certain categories of ity. price of such shares. In case of redemption of invest- Taxable income from agricultural activities is deter-freelancers who do not have employees is subject to The taxable amount is determined by deducting a 25% ment titles held in open investment funds, the capital mined on income quotas issued by specialized territo-income tax based on income quota(s), which are an- expense quota from the gross income. Tax on rental gain is the positive difference between the redemption rial directorates of the Ministry of Agriculture and Ruralnually established by the Ministry of Economy and Fi- income is determined by applying 16% on the taxable price and the purchase/subscription price. A capital Development, and shall be approved by the territorialnance. amount. As an exception, taxpayers may opt for the gain on share sale obtained as a result of a stock op- general directorates of public finance. Alternatively,Freelancers are required to make anticipated payments determination of the net rental income based on single tion plan is defined as the difference between the sale taxpayers earning income from agricultural activitieson a quarterly basis, by the 15th of the last month of entry accounting. price and the preferential acquisition price. A concept may choose to determine the income based on singleeach quarter. of “net capital gain” has been introduced as represent- entry bookkeeping. The tax is computed by levyingIncome from intellectual property rights 9.8 Investment income ing the difference between gains and losses registered 16% on the taxable income.The net income from intellectual property rights results Investment income includes: during one year (i.e., positive or negative differences Income derived from sale of agricultural products ob-by deducting from the gross income the following: • Dividend income between the sale and purchase price, less the related tained after harvest under certain conditions is subject• Deductible expenses representing 40% of gross in- • Interest income transfer costs). to a reduced income tax rate of 2%.come • Gains from transfer of securities Losses generated from transfer of shares starting with• Compulsory social security contributions • Income from futures/forward transactions with for- 2010 can be carried forward to the following year. 9.12 Prizes and gambling incomePayers of intellectual property rights compensation are eign currencies and other similar operations This provision does not apply for the losses incurred The tax on prizes is 16%, and is levied on the net in-required to compute, withhold, and pay a 10% ad- • Income from liquidation in 2009. come representing the balance between gross realizedvance income tax by the 25th of the following month. Dividend income The net capital gains from sale of shares in open com- income and the tax free amount (i.e., currently RON Dividends are defined as any grant of benefits in cash panies and open investment funds has been subject 600). The tax is payable by the 25th of the following9.6 Income from other independent activities or kind by a legal entity to shareholders or associates as to 16% tax applied to gains obtained from the sale of month and the liability to compute, withhold, and payIncome from the following sources is also taxed at a consequence of holding participation titles (with cer- the shares sold within 365 days inclusive of acquisition, the tax rests with the payer of the income. The tax is fi-10% advance income tax: tain exceptions). Any amount paid by a legal entity for and 1% tax for those shares held for a period exceed- nal. The tax on gambling is also final and is determined• Income from sale of goods on consignment goods or services provided by a shareholder is treated ing 365 days. by applying a tax rate of 20% on the net income, not• Income from agent, commission or commercial man- as dividend for the portion of the value of such goods Gains from transfer of shares and participation titles in exceeding RON 10,000, and a tax rate of 25% on thedate agreements or services that exceeds the market value. closed companies are subject to 16% tax. net income that exceeds RON 10,000. The net income• Income from civil conventions based on the Civil The tax rate applicable to dividends distributed to resi- During the period 1 January 2009 – 31 December in the case of gambling income is computed similarlyCode dent individuals is 16% and is calculated, withheld, and 2009, income from shares of listed companies was to income from prizes.• Income from accounting, technical, judicial and ex- paid by the payer of dividend. The tax should be paid non-taxable for income tax purposes.tra-judicial expertise by the 25th of the month following the dividend pay- Income from futures/forward transactions with foreign 9.13 Taxation of real estate transactionsPayers of such income are required to compute, with- ment. In case of dividends distributed but not paid until currencies and other similar operations The real estate transfer tax, which has to be paid byhold and pay the advance income tax by the 25th of the end of the year, the tax is payable by 25 January of Gains from sale-purchase transactions of foreign cur- the taxpayer on the transfer of the property right or itsthe following month. Separately, payers of income the following year. The dividend tax is final (i.e., the in- rencies with subsequent term settlements, as well as divisions, is computed as follows:required to compute, withhold, and pay the advance come is not subject to regularization). The withholding from any other similar operations, are taxable at the fi- • For buildings and their related land, as well as landincome tax are also required to submit a statement for tax for non-resident individuals is either 16% or a more nal rate of 16%. An anticipated tax of 1% is computed without constructions, acquired and sold within aeach individual by the end of February for the previous favorable rate if a double tax treaty is applicable. and withheld by the intermediary of such transactions three-year period inclusively:year. Interest income (e.g., a bank), upon finalization of the operation. Sub- - 3% of the sale amount, if this amount is up to RONOnly payers of salary income are exempt from this Taxable income from interest is any income in the form sequently, the anticipated tax is payable by the 25th of 200,000 inclusively Page 66 Page 67
    • - For a sale amount over RON 200,000, the due tax income tax payment deadline will be also 25 May of ployees, whose activity was temporary interrupted for the confidentiality of information pertaining to taxes is RON 6,000 plus 2% of the amount which exceeds the following year. economical, technical, structural or similar reasons are and taxpayers. RON 200,000 Taxpayers earning only salary income throughout the exempt from paying the social security contributions• for buildings and their related land, as well as land entire fiscal year fulfill their tax obligations through for a period not exceeding 90 days. This exemption 10.2 Representation and certificationwithout constructions, acquired and sold after three employer withholdings. Employers withhold the in- period will be counted in the individual’s total contribu- Taxpayers may appoint representatives in their relationsyears: come tax on a monthly basis. Expatriates employed tions period. with the tax authority. Representatives of taxpayers - 2% of the amount, if the amount is up to RON abroad but performing an activity in Romania should Furthermore, the indemnities received during the em- without Romanian tax residence should themselves be 200,000 inclusively file monthly tax returns and pay monthly tax in Roma- ployment suspension period, of at least 75% of the Romanian tax residents. - For a sale amount over RON 200,000, the due tax nia by the 25th of the following month if certain condi- base salary, are not included in the salary income and Starting from 1 January 2010 annual profits tax decla- is RON 4,000 plus 1% of the amount exceeding RON tions are met. are not taxable for a period not exceeding 90 days, rations must be certified by an authorized tax consul- 200,000 starting from February 2010, but no later than 31 De- tant, except where auditing is mandatory. 9.17 Social security cember 2010.9.14 Income from other sources Under Romanian employment regulations, both em- 10.3 General procedure provisionsIncome from other sources includes, inter alia: ployer and employee are required to contribute to the 9.20 Contribution to the health fund by foreign Competence of tax authorities• Insurance premiums borne by a freelancer or any social security system. individuals The tax authorities are empowered to administer taxother entity on behalf of an individual who is not an Citizens of the European Union countries and Switzer- claims, perform tax audits, and issue application normsemployee of the respective freelancer/entity. Such in- 9.18 Social security contributions at the individual land (as of 1 June 2009) benefit from coverage of med- for the tax legislation. Customs authorities are empow-come is taxable in the hands of the recipient at 16%, level ical expenses incurred on Romanian territory, as well as ered to manage customs related duties.through withholding, the tax being final • Social security contribution (i.e., pension) – 10.5% on exemption from the social security contributions based The competent tax authority for administration of• Income received by pensioners who are former em- the gross monthly income on certificates of coverage (E101 forms) issued accord- taxes is the tax authority of the district, locality or Bu-ployees arising out of the employment contracts con- • Health fund contribution – 5.5% on the gross ing to the EU legislation on social security. charest where the taxpayer or the income payer has itscluded with their former employers or based on cer- monthly income However, if an individual is not subject to social contri- tax domicile. In the case of taxpayers performing activi-tain special laws, in the form of price differences for • Unemployment fund contribution – 0.5% on the butions in the home country, that person will fall under ties through a permanent Romanian establishment, thecertain goods, services or other rights. Such income is gross monthly income the jurisdiction of the Romanian social security system competent tax authority is determined based on thetaxable in the hands of the recipient at 16%, through 9.19 Social security contributions at the employer level and will be liable to pay social security contributions place where the permanent establishment is located.withholding, and the obligation for the calculation and • Social security contribution – between 20.8% and due under Romanian regulations. Correction of material errorswithholding rests with the payer of such income 30.8% depending on working conditions, of the total The tax authority may proceed to correction of mate-Tax on income from other sources is payable by the gross amount paid to employees on a monthly basis 10. Fiscal Procedure Code rial errors identified in the tax administrative acts on its25th of the month following the realization of the in- • Health fund contribution – 5.2% of the total gross own initiative, or further to an application submittedcome. amounts paid to employees on a monthly basis The Fiscal Procedure Code regulates the rights and ob- by the taxpayers. • Unemployment fund contribution – 0.5% of the total ligations of parties engaged in fiscal juridical relations Material errors are errors or omissions with respect to9.15 Personal deductions gross amount paid to employees on a monthly basis regarding: the name, capacity of parties of the fiscal legal rela-Romanian individuals domiciled in Romania, as well • Contribution for medical leave and indemnity – • Administration of taxes (i.e., activities related to fiscal tionship, computation errors or other errors similar toas foreigners meeting the residence criteria for three 0.85% of the total gross amount paid to employees on registration, declaration, assessment, verification and these, and do not refer to the substance of the taxconsecutive years, are entitled to personal deductions, a monthly basis, capped at 12 national minimum gross collection of taxes, solving of appeals against fiscal as- act.which vary depending on the gross monthly income salaries multiplied with the number of insured persons sessments) provided by the Fiscal Code The corrected act will be notified to taxpayers.and the number of dependents, as follows: • Contribution to the National insurance fund for work • Administration of customs duties Obligation to provide information• For gross monthly income up to RON 1,000, the accidents and professional diseases – the contribution • Contributions, fines, and other revenues of the gen- Taxpayers or their appointed representatives are obligedmonthly deductions vary between RON 250 for per- ranges between 0.15% and 0.85% of the total gross eral consolidated budget to provide, in writing, the tax authorities with the re-sons without dependents and RON 650 for at least amount paid to employees on a monthly basis, de- The Fiscal Procedure Code constitutes the common law quested information necessary for the determinationfour dependents pending on the risk category for administration of taxes and if silent on certain mat- of the facts regarding the tax position. The tax authori-• For gross monthly income between RON 1,000 and • Labor Chamber commission – 0.25% or 0.75% of ters, provisions of the Civil Procedure Code are to be ties may request information from other persons, suchRON 3,000, personal deductions are regressive in com- the total monthly salary fund, depending on whether applied. information being considered only if confirmed byparison to the above and shall be set by order of the the company or the Labor Chamber keeps the work- other evidence.Minister of Economy and Finance books 10.1 General principles for administration of tax- Charge of proof• For gross monthly income higher than RON 3,000, no • Contribution to the Guarantee fund for payment of es Taxpayers are held responsible to prove the facts andpersonal deductions are granted salary debts – 0.25% of the total gross amount paid to Consistent application – states the obligation of the tax deeds supporting their declarations and appeals to the employees on a monthly basis authorities to apply in a consistent manner the provi- tax authorities, whereas the latter have the obligation9.16 Filing and payment requirements In 2010, employers hiring unemployed persons on the sions of tax legislation with a view to correctly assess to motivate the amount payable by taxpayers.Taxpayers, with certain exceptions, have to file an an- newly created jobs and maintaining such work relation- taxes due by taxpayers.nual income tax return with the tax authorities by 15 ship for at least 12 months, are entitled, under certain Right to be heard – according to this principle, the tax 11. Fiscal sanctionsMay of the following year. circumstances, to an exemption from paying the social authorities are obliged to allow the taxpayer to expressHowever, for the incomes earned starting with 2010, security contributions related to such employees for a its position with respect to the deeds and circum- Failure to submit tax returns and failure to pay taxes inthe deadline will be 25 May of the following year. period of 6 months. stances relevant for decision-making prior to making due time entails fines and penalties as follows:Moreover, the taxpayer will be responsible for comput- From February 2010 until 31 December 2010, em- a decision. The Fiscal Procedure Code stipulates severaling the annual income tax on the basis of the infor- ployees whose labor contracts were suspended on the exceptions from this general principle. 11.1 Failure to file tax returnsmation provided in the annual income tax return. The employer initiative and employers of the respective em- Confidentiality – tax authorities are obliged to ensure Non-filing of tax returns by the respective deadline may Page 68 Page 69
    • attract the following fines: dividend income and non-residents’ income), a fine• RON 500 to RON 1,000 for individuals ranging between RON 1,000 and RON 27,000 be ap-• RON 1,000 to RON 5,000 for legal entities plied, depending on the fiscal obligations.Failure to submit the recapitulative statement shall besanctioned with a fine of 2% of the total amount of 11.3 Deferral of outstanding tax liabilitiesintra-community supplies/acquisitions of goods that Fiscal liabilities under the administration of the Nationalhave not been declared/undeclared differences due to Agency for Fiscal Administration could benefit from thesubmission of Recapitulative statements that contain deferral of payment, as an incentive to ease the effectsincorrect or incomplete amounts. The fine will be re- of the economic downturn.duced by 50% if the taxable person corrects the Reca- The deferral can be granted for a period of maximumpitulative statement by the legal term of submission of 6 months, which cannot exceed 20 December of thethe next statement. year in which it was granted. In this case the interest isFailure to provide transfer pricing documentation in charged at 0.05% for every day of deferral.conditions requested by the tax authorities is subject to In order to benefit from and to maintain this fiscal in-a fine of up to RON 14,000. centive, tax payers must submit a formal request andTaxpayers remain liable for the payment of fines for late meet certain conditions, including inter-alia the follow-filing of returns regardless of the payment of the tax ing:due. • They have submitted all tax returns due • They should establish a guarantee or offer certain11.2 Interest and penalties on delays in payment goods (covering both the deferred liabilities and theof tax due late payment liabilities due for the deferral period)Failure to pay taxes at the prescribed date is penalized • They should pay within the legal term the current taxwith late payment penalty, which is currently 0.1% for obligationsevery day of delay. This tax incentive is granted only once for a given cal-Additionally, for failure to withhold or failure to pay endar year. The provisions are applicable until 30 Junetaxes withheld at source (taxes on salary type income, 2010. Avocat Magos Venkatesh Srinivasan Partner, Head of Tax and Legal venkatesh.srinivasan@ro.ey.com www.ey.com This update is accurate to the best of our knowledge at the time when this overview was prepared. It is, however, meant as a gen- eral guide and comes with the recommendation that professional advice be sought before any action is taken Page 70
    • the Supervisory Board, in case of the dualist system, by the company (for instance, offering them to the may not conclude a labour agreement with the com- managers); pany. A services provision agreement (management c) the entrepreneurs plan to list the company on a agreement) is required instead. stock exchange or on the OTC market; c) Representative office – usually set up by foreign com- d) the entrepreneurs contemplate financing the com- panies in Romania in order to carry out non-commer- pany through issue of bonds or other financial instru- cial activities, such as advertising and market research ments; on behalf of the parent company. Representative of- fices cannot conduct commercial activities in Romania. The other forms of doing business are not common In order to register a representative office, company among foreign investors in Romania. However, foreign investors still use representative offices if their activity Legal considerations for officials should apply to the Ministry Economy, Com- merce and Business Environment and pay an annual only involves promoting one of their group companies fee of the RON equivalent of USD 1,200 for the license. in Romania. Branches are mainly used in cases where foreign investors plan for a short presence in Romania foreign investors in Upon the authorization, the representative office must be also registered with the Ministry of Public Finances or if the investors decide, for capitalisation (in the case and with the Romanian Chamber of Commerce. An of banks) or commercial reasons, not to legally sepa- rate the Romanian entity from the parent company. Romania annual income tax of the RON equivalent of EUR 4,000 must be paid. d) Branch of foreign company – does not have its own 2. Mergers and acquisitions legal personality or share capital. Being a unit of theForeign investors coming to Romania would be well minimum statutory capital for a joint-stock company parent company, branch activities cannot exceed the After completing the first investment stage – establish-advised, before starting their business, to inform them- shall be RON 90,000, approximately EUR 21,428 (cal- scope of activity of the parent company. ing a Romanian legal entity – foreign investors may,selves about every available option to set up and carry culated at the exchange rate of RON 4.2/EUR). Shares e) Consortium – domestic legislation allows for the during the course of business, restructure their activi-out their activities in a profitable manner that corre- must be held by a minimum of 2 (two) shareholders, conclusion of a joint venture agreement (in Romanian ties through mergers and acquisitions as stipulated bysponds to their business profile and investment plans. individuals and/or legal entities (there is no maximum “contract de asociere in participatiune”). Under this Romanian law.This overview provides basic information about the le- limit), and can be open to either public or private par- agreement, parties act together for the accomplish- Law 31/1990 (the Romanian Company Law), asgal requirements for a foreign investor in Romania. ticipation. The par value of 1 (one) share shall not be ment of a common business goal. This form of doing amended and republished, and the methodological less than RON 0.10. business in Romania does not create a legal entity. norms approved under Order 1376/2004 (regarding1. Choosing a form of company Generally, one party is in charge of the bookkeeping accounting procedures for mergers, spin-offs, dissolu- The shareholders may empower the administrators to of the joint venture. tion, liquidation of companies, withdrawal and exclu-For a foreign investor coming to Romania to set up increase the share capital of the company with a speci- sion of shareholders, as well as the fiscal regime of such f) Societas Europaea (SE) – A SE may be created onbusiness, choosing a form of company, as provided by fied amount (the Authorized Capital). Such Authorized operations) represent the general legal framework for registration in any of the EU member states in accor-Romanian legislation, represents the first step of the Capital may not exceed half of the value of the share mergers and acquisitions in Romania. The Romanian dance with the EC Regulation 2157/2001. Europeaninvestment. The most frequently used forms of com- capital. Companies Law regulates both merger by absorption law requires member states to treat an SE as if it werepanies are: For the administration of joint-stock companies two (whereby one or more existing companies are absorbed a public limited company, formed in accordance witha) Limited liability company (SRL) – the shareholders’ li- alternative systems may be elected: the unitary and the by another existing company) and merger by fusion the law of the member state in which it has its regis-ability is limited to the amount subscribed as participa- dualist system. (whereby a new company is created by integrating two tered office. By using the SE, businesses operating intion to the company’s share capital. The share capital 1. The unitary system - the company shall be managed several member states can establish themselves as a or more existing companies), as well as spin-offs. Theof an SRL must be at least RON 200, approximately EUR by one or several administrators, always in an odd single company, rather than following different rules merger/spin-off should be decided separately, by each47 (calculated at the exchange rate of RON 4.2/EUR), number, organized as a Board. The Board may assign for each country in which they have subsidiaries. SEs participating company voting in the General Meetingdivided into shares with a par value of at least RON the management of the company to one or several are only suitable for large companies. of Shareholders. Following this, a merger/spin-off plan10 each. A limited liability company may be formed directors. For those companies whose financial state- Limited liability companies are the most popular ve- is prepared and registered with the Trade Registry, inby a minimum of one shareholder and a maximum of ments are subject to auditing, such an assignment is hicles among local and foreign investors for carrying order for it to be examined by an expert and to get the50 (fifty). These shareholders may include individuals compulsory and the minimum number of administra- out business activities in Romania, because they have approval of the delegated judge, as well as to have itand/or legal entities. A person, either natural or legal, tors is three. fewer administrative requirements and greater flexibil- published in the Official Gazette.cannot be the sole shareholder of more than one SRL. 2. The dualist system – the management of the com- ity in operations than other types of companies. They Regarding the completion of the merger/spin-off op-If a person intends to form several companies, it would pany is ensured by a Directorate and a Supervisory also have a low initial capital requirement. However, eration, two situations may arise:be necessary for a minimum of one share to be held Board: the number of joint-stock companies in Romania is a) where pursuant to the merger/spin-off new com-by another person or entity. Moreover, a limited liabil- • The Directorate carries out exclusively the activity and increasing, because of their attractiveness to investors panies resulted, the operation takes effect upon theity company cannot have, as sole shareholder, another management of the company and reports to the Su- interested in equity investing. A joint-stock company incorporation date of the new company or the last oflimited liability company that is also owned by a sole pervisory Board; must be set up whenever: the new companies.shareholder. • The Supervisory Board exerts permanent control over a) the company wants to carry out certain types of ac- b) for the other cases (e.g. merger by absorption,b) Joint-stock company (SA) – the shareholders’ liability the Directorate of the company and reports to the tivities (e.g. insurance, banking activities etc.); spin-offs where the transfer is made to already exist-is limited to the amount subscribed in the company’s General Meeting of the Shareholders. ing companies), the operation takes effect on the date b) the entrepreneurs foresee any advantage or neces-share capital. Further to the amendments introduced The administrators and the directors, in case of the uni- when the resolution of the last company approving the sity with respect to the acquisition of its own sharesby Law 441/2006 to the Romanian Companies Law, the tary system, and the members of the Directorate or of operation is registered with the Trade Registry, save for Page 72 Page 73
    • where the participating companies jointly agree on a in the General Meeting of Shareholders are required), change the specific purpose of such land. conditions should be met by Romanian legal entities bydifferent date. However, this date cannot be prior to whilst shares in a joint-stock company are not subject For foreign citizens, stateless persons and legal enti- 31 December of the previous year:the end of the last financial year of the company/com- to specific restrictions regarding their transferability to ties from non-EU states, ownership over land may be • More than 50% of the total revenues obtained frompanies that transfer its/their assets and liabilities and third parties, if not otherwise provided for. acquired in accordance with the provisions of interna- activities other than consulting and managementcannot be later than the end of the current financial There are also some instances where companies in- tional treaties, based on reciprocity terms.year of the absorbing or the beneficiary companies. • At least one employee, but not more than nine volved in a merger or acquisition are subject to certainGovernment’s Emergency Ordinance 52/2008 amend- competition regulations. However, as a general rule, • Annual turnover less than EUR 100,000 4. Investment incentivesing Romanian Company Law regulates both cross bor- there are no competition issues to be considered when • Share capital owned by natural persons or legal en-der mergers and Societas Europaea. companies participating in a merger and/or acquisition Foreign and domestic investors are offered equal op- tities, other than the state, local authorities or publicThe amendments regulate the cross-border mergers in- are part of the same group of companies. Mergers portunities to invest in Romania. In general, incentives institutionsvolving limited liability companies (Romanian: societati and acquisitions involving at least one public company are intended to boost the economic development of For 2009 micro enterprises were required to pay 3%cu raspundere limitata – SRL), joint stock companies must be done in accordance with Capital Market Law the country, particularly the acceleration of industriali- tax on any income, except certain items of revenue(Romanian: societati pe actiuni – SA), joint stock part- 297/2004 and by observing the regulations issued by sation in disfavoured zones, as well as the development specifically provided (e.g., income from stock varia-nerships (Romanian: societati in comandita pe actiuni the National Securities and Exchange Commission of small and medium enterprises (SMEs), and micro en- tions, income from provisions). In case the resulting in-– SCA) and Societas Europaea having their registered (CNVM). terprises. come tax is lower than the minimum annual corporateoffice in Romania and companies established pursuant tax, the amount to be paid will be the equivalent of theto the law of a member state and having their regis- 3. Real estate 4.1 Small and medium enterprises latter sum. The tax is paid quarterly, by the 25th of thetered office, central administration or principal place of Law 346/2004 provides incentives for private investors month following the reporting quarter.business within the European Union. Pursuant to Romania’s joining the EU, as of 1 January who set up or run small and medium-sized enterprises Companies complying with the above conditions andSupplementary obligations are provided for the del- 2007, foreign investors interested in real estate acquisi- (SMEs). taxed under the general profits tax legislation may optegate judge and for the Romanian Trade Registry that tions should note that EU nationals and entities, as well Domestic legislation defines an SME as a company for the special tax regime for the year 2010. Newly set-shall undertake cooperation duties with similar institu- as stateless persons domiciled in any EU state, accord- that: up companies may indicate their option, with respecttions of the member states where companies involved ing to the provisions of Law 312/2005, can acquire land (i) has an annual average number of employees below to the applicable tax regime, during registration within the merger process are headquartered, in order to in Romania, under the same conditions as Romanians, 250; and the Trade Registry.verify the legality of the procedures. provided they reside in Romania. The above terms do not apply to buildings, which may be owned by any (ii) whose net annual turnover does not exceed EUR 50Furthermore, the implication of the employees in the million, or whose total assets value does not exceed 5.1 Disfavored zonesdecision-making process of the companies that are individual or legal entity irrespective of nationality or Emergency Ordinance 24/1998 regulates disfavored residence status in Romania (such individual or entity EUR 43 million, according to the latest approved finan-parties of the cross border merger is evidenced. cial statements; and zones. Such zones are determined by Government De- will not, however, own the land on which the building cision for a period of at least three, but not more thanThe cross border merger procedure (meaning terms, is situated). (iii) fulfils the independence criterion: it should not holdconditions, documents, information to be provided and 10 years. However, regardless of the above mentioned legal more than 25% of the shares or voting rights of anoth-included in the respective documents) is more or less er entity and not more than 25% of its share capital or Currently, there are 3 disfavored zones situated inthe same as the procedure provided by the Romanian framework in regards to mandatory components of the mining areas of the country, valid until December land acquisitions, in practice, the Notaries Public are voting rights should be held by other entities that areCompany Law with respect to the local mergers. There- not SMEs or by natural persons that are authorised to 2010.fore, there are several steps that should be considered reluctant in authenticating the sale purchase/transfer independently carry out commercial activities. Legal entities that obtained a permanent certificate ofwhenever such a project is envisaged, as follows: agreements. The said situation is also due to the nu- Regarding the independence criterion, the following investor in a disfavored zone before 1 July 2003 benefit merous controversies between the legislator, lawyersa) Drafting the merger project, containing specified in- exceptions are allowed: enterprises owned by public from a tax exemption for profits on new investments, and Notaries Public.formation, shall be published at least 1 month before investment companies, venture capital companies, in- for the period during which the disfavored zone statusthe date of the general meeting to decide upon the Moreover, Law 312/2005 which regulates the condi- exists. tions under which EU citizens and entities, stateless stitutional investors, business angels (on condition thatmerger; the total investment amount of such investor into the The incentives granted under this law are subject to persons and other foreigners may acquire land in Ro-b) Drafting the report of the management, report of an same company does not exceed EUR 1,250,000), uni- the limitations imposed by state aid regulations. Most mania, provides that EU persons that do not reside inindependent expert; versities and non-profit research centres, local public of the disfavored zones had ceased to be valid after Romania may acquire land here only after the expira-c) The approval of the merger by the general meeting administration authorities. Banking companies, insur- April 2009. tion of a 5-year period after Romania’s accession tois also required; EU. ance and reinsurance companies, companies manag- ing investment funds, financial investment companies 5.2 Industrial parksd) Publicity formalities related to the merger project With respect to agricultural and forest land, there is (i.e., security trading companies), and companies whichand the merger resolutions. According to Government Ordinance 65/2001, indus- a 7-year freeze during which no EU national (save for have foreign trade as the sole object of activity cannot trial parks are strictly delimited areas where researchThe Romanian Company Law provides for simplified Romanians) or other foreigner may acquire such type qualify as SMEs. and development, industrial production, and techno-procedures in the case when a parent company merges of land. However, farmers carrying out independent Romanian legislation provides certain financing incen- logical development activities are carried out.by absorption with a subsidiary it wholly owns. activities and who are: (i) citizens of member states or stateless persons domiciled in a EU member state, tives to SMEs such as state assistance and loans guar- An industrial park may be set up through collaborationWith regard to acquisitions, Company Law regulates anteed by the state. between central and local administration authorities who have established their residence in Romania, or (ii)the acquisition of shares in any type of company. In and companies, research and development institutes, stateless persons domiciled in Romania - may acquirecase of limited liability companies and joint-stock 5. Micro enterprises and/or other interested partners. The duration of the agricultural and forest land under the same conditionscompanies, the acquisition procedures are different as industrial park is granted at founders’ request, but it as any Romanian citizen commencing with 1 Janu-shares in a limited liability company are not freely trans- The Fiscal Code establishes the taxation regime for mi- cannot be lower than 15 years. An industrial park is ary 2007, without the possibility for such persons toferable to third parties (a special quorum and a majority cro enterprises. To qualify for this regime, the following administered by a Romanian legal entity, called the ad- Page 74 Page 75
    • ministrator-company. No shareholder company using Foreign operators should set up a permanent subsid-the facilities and/or infrastructure of the industrial park iary in Romania within 90 days of obtaining the min-can hold direct or indirect control over the administra- ing license, to be maintained throughout the periodtor-company. of operation.The following incentives currently apply to the settingup and development of industrial parks: 5.5 Petroleum Law Petroleum Law 134/1995 regulating all operations• Exemption from taxes due on conversion of agricul- involving oil and gas reserves within Romania wastural land used for industrial parks abolished and replaced by Law 238/2004 as further• Buildings, constructions and land located inside in- amended by the Government Emergency Ordinancedustrial parks are exempt from local property tax 101/2007, as approved by Law 262/2009.• Other incentives granted in compliance with the law Oil resources located on Romanian territory are exclu-by the local administration sive public property of the Romanian state. Financial reporting in The Romanian state’s interests in the mineral oil sector5.3 Free trade zones are represented by the National Agency for Mineral Re-Law 84/1992, as further amended, regulates the free sources. Through its representative authority, the statetrade zones regime. Romania can grant a Romanian or foreign legal entity the rightFree trade zones are characterized by a specific cus- and the obligation to perform oil operations, based ontoms regime: the customs supervision is limited to the an oil concession. The concession period may not ex-borders of such areas. ceed 30 years, with the possibility to extend the said period with up to 15 years. The main legislation currently regulating the account- the national currency. For internal information pur-Means of transport, products and other goods areadmitted into the free trade zones, regardless of their The oil operations can be conducted through exploita- ing and financial reporting environment comprises poses, entities may choose to draw up statements incountry of origin or destination. However, the import tion licenses or exploration permits only within some the Accounting Law 82/1991 (Accounting Law), re- another currency.of goods, subject to prohibition under domestic law or perimeters, as delimited by the National Agency for published in 2008, and Minister of Public Finance Legal entities or individuals have to keep written evi-under international agreements to which Romania is a Mineral Resources. Titleholders of an oil license are li- Order 3055/2009 (MoF Order 3055/2009) including dence of all transactions and record these transactionsparty, is forbidden. able to pay a petroleum royalty, in accordance with the subsequent modifications and related legislation. The in their accounting books. The records required by the provisions of Petroleum Law 238/2004. Accounting Law indicates the requirements for the Accounting Law include: Journal Registers, Stock Reg- general accounting framework for Romanian entities ister (based on an annual inventory of assets and liabili-5.4 Mineral resources Foreign operators should create a permanent establish- and MoF Order 3055/2009 covers financial reporting ties), and Nominal Ledger (based on analysis of the ac-Romania is rich in natural resources, especially oil, gas, ment in Romania (i.e. a branch or company) within 90 and related accounting requirements. The provisions of counting information posted from source documentssalt, gold and silver ore and non-ferrous metals. Recent days of obtaining the oil and gas license, to be main- MoF Order 3055/2009 have been prepared to reflect or Journal Registers). The books and the accountinggeological and geophysical studies have shown there tained throughout the period of activity. relevant European Directives in force, namely Directive records may be hand-written or in an electronic formatare many mineral deposits (gold, silver, lead, zinc, cop- Unlike Law 134/1995, Law 238/2004 does not grant IV for stand-alone financial statements and Directive VII and can be used as evidence in court and are subjectper, iron and manganese) and oil reserves (both on land any incentives to the holders of an oil license. for consolidated financial statements. to review by Romanian fiscal and judicial authorities.and offshore), with considerable potential for exploita- In this article we focus on the following financial re- Accountants should prepare a trial balance from thetion. These offer substantial opportunities for foreign porting legislation: nominal ledger on an annual basis and this trial bal-investors interested in these sectors. • Approval of Accounting Regulations to comply ance is the basis for preparation of periodic financialMining Law 85/2003, as further amended, regulates with European Directives – Minister of Finance Order statements.mining activities in Romania. Its defined scope is to 3055/2009 (MoF Order 3055/2009) Accounting regulations issued require a specific chartensure maximum transparency in mining activities and • Conformity of Accounting Regulations with Inter- of accounts and specific reporting disclosure contentsfair competition, without discrimination between op- national Financial Reporting Standards and respecting and formats for entities. From 1 January 2006 up to 31erators, depending on the property type and the origin conformity of accounting regulations with European December 2009, MoF Order 1752/2005 and startingof the capital. Directives – Minister of Finance Order 907/2005 (MoF with 1 January 2010 MoF Order 3055/2009 providesSubterranean and aboveground mineral resources lo- Order 907/2005) the applicable base to be followed in two accompany-cated on Romanian territory, within the continental • Application of International Financial Reporting Stan- ing regulations:shelf and within Romania’s Black Sea economic area dards – Minister of Finance Order 1121/2006 (MoF Or- • Accounting regulations for compliance with the 4thare part of the state’s public property. der 1121/2006) Directive of the European Economic Communities (AR4) andMining is carried out through a mining license granted Eirinikos Platis Sources of accounting principles • Accounting regulations for compliance with the 7thby the National Agency for Mineral Resources for a Partner Directive of the European Economic Communitiesmaximum period of 20 years, and the right to extend eirinikos.platis@ro.ey.com Accounting in Romania is regulated by the provisions (AR7)it for successive five-year periods in exchange for an www.ey.com of Law 82/1991, republished in June 2008 (Accounting MoF Order 3055/2009, applicable from 1 Januaryannual mining royalty and surface tax. Law) and modified by Law 259/2007. 2010, in conjunction with the accompanying account-Each mining license is established by Government De- This update is accurate to the best of our knowledge at the time when this overview was prepared. It is, however, meant as a gen- In accordance with the Accounting Law, it is manda- ing regulations issued, provides: prescribed layout andcision, and its provisions will remain valid throughout eral guide and comes with the recommendation that professional tory for all legal entities and authorized individuals to content of the annual financial statements, accountingthe license period, under the conditions in which they advice be sought before any action is taken keep accounting records in Romanian language and principles and valuation rules, rules on the preparation,were concluded. Page  Page 
    • approval, auditing and publication of the annual finan- Any departures from the above principles are seen as ration of annual financial statements. are not included in Mof 3055/2009.cial statements. being exceptional and would require disclosure in the There is no direct mention of International Financial • IAS 19’’ Employee Benefits”- MoF 3055/2009 in- explanatory notes indicating reason for not applying Reporting Standards (IFRS) in MoF Order 3055/2009 cludes for post employment benefits an indication ofFundamental concepts and the effect on the disclosure of assets and liabili- or the accompanying accounting regulations (AR4 and the criteria to be considered in determination of post ties carrying value, the financial position and period AR7). employment benefits provisions (age, length of servicesMoF Order 3055/2009 , as was the situation for MoF results. There is, as far as AR4 and AR7 are concerned, a con- and personnel turnover) and that the provision shouldOrder 1752/2005, looks to cover in one piece of leg- MoF Order 3055/2009 also stipulates that the follow- sistency in many areas with IFRS, and it can be assumed be established by a specialist in the field.islation the financial reporting applicable to entities ing qualitative characteristics of financial statements (although there is no definitive guidance), that where • IAS 11 “Construction contracts, IAS 40 “Investmentof all sizes, with differing level of disclosure relating should apply: further guidance is required, IFRS could be referred to Property”; and IAS 41 “Agriculture”-are touched to ato size and public interest consideration. MoF Order • Understandability: information provided in financial for applicable accounting policy disclosures required in very limited extent or even not at all (e.g. IAS 41).3055/2009 is, in the main, largely providing further statements should be readily understandable by us- the notes to the financial statements. In many areas, • For intangible assets, there are some specific treat-clarification on matters already included in MoF Order ers, assuming users have a reasonable knowledge of IFRS will provide further guidance on valuation meth- ments prescribed that are not in all cases consistent1752/2005. business and economic activities and accounting and ods and accounting policies. with IAS 38 “Intangibles”. This includes treatment forMoF Order 3055/2009 stipulates that the following a willingness to study the information with reasonable At the same time, there are some IFRS that are not ap- depreciation of goodwill arising from acquisition.general principles apply: diligence. plied or have only limited comment in AR4, such as: • Errors from previous periods are included as a current• Accruals basis – Transactions and other events are • Relevance: information must be relevant to the deci- • Deferred taxation MoF Order 3055/2009 does not year retained earnings adjustment, with appropriaterecognised when they arise and are entered in the ac- sion-making needs of users. Information has the qual- make any reference to deferred taxation. disclosure and a requirement that any loss generatedcounting records and reported in the financial state- ity of relevance when it influences the economic deci- • For “financial instruments” there is some mention of is to be covered by current year profit before any profitments for the related period. sions of users by helping them evaluate past, present treatment, but it is very limited and certainly includes distribution from the current year is made. Compara-• True and fair view – Annual financial statements are or future events or confirming, or correcting, their past little of what is included in IAS 32 “Financial Instru- tives are not adjusted for any prior period item. IASto be prepared to give a true and fair view of the as- evaluations. Relevance is determined by the nature and ments – Disclosure and Presentation”, IAS 39 “Finan- 8 “Accounting Policies, Changes in Accounting Esti-sets, liabilities, financial position and period results of the materiality of the information. cial Instruments – Recognition and Measurement” and mates and Errors” requires adjustments to be madean entity in accordance with the provisions indicated in • Reliability: information has the quality of reliability IFRS 7 “Financial Instruments – Disclosure”. to previous year comparatives for certain accountingMoF Order 3055/2009. when it is free from material error and bias and can be IAS 17 “Leases”, there are definitions included in MoF policy changes and previous period errors.• Comparative figures are to be disclosed for all state- depended upon by users. Reliability of the information Order 3055/2009 of a “finance lease” and an “operat- • For the preparation of consolidated financial state-ments prepared. can be attained through faithful representation, sub- ing lease”, as well as the accounting treatment to be ments (see further comments below) there are some• Going concern – The entity is presumed to be carry- stance over form, neutrality, prudence and complete- applied for these items, but there is more limited disclo- differences compared to IFRS 3 “Business Combina-ing on its business as a going concern. If this principle ness. sure requirements than IAS 17.. MoF Order 3055/2009 tions” including:is not appropriate and the administrator(s) are aware • Comparability: users must be able to compare the provides also guidance on sale and leaseback arrange- • Treatment of amortization of the goodwill arising onof this, there is a doubt on the ability of an entity to financial statements of an entity through time in order ments treatment. acquisition over 5 years; IFRS carry at full value less im-continue its activities. This should then be disclosed in to identify trends in its financial position and perfor- • IAS 23 “Borrowing costs”- MoF 3055/2009 gives the pairment assessment.the explanatory notes. mance. Also, they must be able to compare the finan- option to entities to capitalize interest and commissions • Negative goodwill on acquisition is recognised in• Consistency – There should be an application of valu- cial statements of different entities in order to evalu- paid for obtaining the financing directly attributable to the income statement only to the extent that certaination rules on a consistent basis from year to year. ate their relative financial position, performance and qualifying assets. criteria are met; IFRS 3 requires immediate expensing• Prudence – In particular: changes in financial position. • IFRS 6 “Exploration for and Evaluation of Mineral Re- through the income statement. −Only profits made at the balance sheet date are to sources”-some definitions and accounting treatments • If on acquisition values cannot be determined, then be included. Valuation principles and accounting is included in MoF 3055/2008 which are similar to IFRS a value based on acquisition date or nearest available −Includes all liabilities relating to financial year or pre- policies 6. However there are no details included for testing of date carrying values can be used for consolidation and vious years, even if such liabilities become apparent impairments of exploration and evaluation assets. for determination of goodwill on acquisition. or become known between the balance sheet date Valuation in general is based on purchase price or pro- In addition matters covered in a number of IFRS stan- • IAS 2 “Inventories” allows FIFO, weighted average and the date of completion of preparation. duction cost. In specific situations, contribution value dards are only touched on to a limited extent or not at and in specific cases, by item identification basis and −All depreciation (value adjustments) is to be includ- and fair value (including revaluations) may be used. all, such as: retail price method. MoF Order 3055/2009 in addition ed irrespective of whether the result for the financial MoF Order 3055/2009 mentions that assets and liabili- • IFRS 2 “Share-based Payment”-:there are some defi- to the cost determination basis indicated above allows year is a loss or a profit. ties will be valued according to the contents of this Or- nitions for share based payments granted to employees that a LIFO method can be used.• Independence – Income and charges relating to the der and to norms issued by the Ministry of Finance. and an accounting treatment to be applied to these • The extent of specific disclosure requirements underfinancial year are recorded irrespective of the date of Accounting principles are meant to reflect cost values, items included in MoF 3055/2009 but these are very MoF Order 3055/2009 is more limited than IFRS re-receipt or payment. but “fair value” should also be considered for carrying limited described and limited disclosure requirements quirements, however to reflect a “true and fair view”• Separation – Components of asset and liability items values for annual financial statement preparation. This than in IFRS 2. as indicated in MoF Order 3055/2009, it is consideredare valued separately. includes revaluations of tangible assets. It is indicated • IFRS 5 “Non-current Assets Held for Sale and Discon- that appropriately detailed disclosure notes should be• Intangibility – Opening balance sheet for each finan- that valuations should be completed by a professional tinued Operations”- MoF 3055/2009 only makes ref- completed.cial year must correspond to the closing balance sheet valuator (i.e., a member of a relevant professional body erence to reclassification of fixed assets to inventories • IFRS provides far more guidance on accounting poli-for the previous financial year. with national or international recognition) and that re- when the entity decides to modify the destination of a cies and principles in specific areas and for specific in-• No offset – Offset between asset and liability items in valuations of tangible assets can only occur for assets fixed assets. dustries.the period end balance sheet is not allowed. existing as of the year end. • IFRS 8 “Operating Segments”- MoF 3055 mention In MoF 3055/2009 there is further guidance, amongst• Economic substance and reality of events – Carrying MoF Order 3055/2009 includes guidance on valuation some definitions of segments and factors to be con- other points, on:values and transactions should be considered and not methods and accounting principles to be considered in sidered for identification of such segments. However • Where IFRS consolidated financial statements areonly the legal form and/or substance. the maintenance of financial records and in the prepa- all criteria size and all disclosures as requested in IFRS 8 prepared there is no requirement to also have MoF Page 78 Page 79
    • 3055/2009 consolidated financial statements. two consecutive financial years or that is a listed com- ments. • Average number of employees by main categories• Provisions, including the involvement of an expert, pany is required to annually complete financial state- Specific details for compulsory explanatory notes prep- and related personnel costsfor determination of pension provisions and introduc- ments that comprise: aration are included in MoF Order 3055/2009 (AR4). • Information on payments to Administrator/(s), man-tion of “constructive obligation” concept for consider- • Balance sheet These include: agement and supervisory boardsation of recognition of reorganization provisions. • Profit and loss statement • Non-current assets • Amounts paid under lease agreements and ongoing• The concept that the time-value of money should be • Statement of changes in equity • Provisions obligations under lease agreementsconsidered when recognizing a provision is included • Cash-flow statement • Profit distributionstarting with 1 January 2010. • Explanatory notes • Analysis of operating result Report of the Administrator(s)• What should be recorded in chart of account catego- Some subcategories of main balance sheet items can • Statement of receivables and payablesries. This is included as an Annex. be combined, where amounts are immaterial or where • Accounting principles, policies and methods A Report of the Administrator(s) is to be completedIn relation to accounting policies, AR4 indicates that: combination would provide greater clarity. This does • Interest and financing sources with each financial year to accompany the annual fi-• Specific principles and policies adopted by the entity not apply for listed companies. • Information regarding employees, administrators, nancial statements.in preparing, drafting and completing its annual finan- Entities that do not meet the size criteria are required management and supervisory bodies The Report is to provide comment on the current year’scial statements to prepare: • Computation and analysis of the main economic and activities of the entity, the financial position and a de-• The management of each entity shall set the account- • Abridged balance sheet financial indicators scription of the main risks and uncertainties facing theing policies for the operations carried out, to reflect the • Profit and loss statement • Other information entity. Disclosure of financial ratios and non-financialspecific activity of the entity • Explanatory notes to the simplified financial state- If there is any departure from the indicated general ratios is encouraged.• In establishing accounting policies, an entity needs to ments accounting principles (“fundamental concepts”) thatensure that the general accounting principles (“funda- • At their own discretion, entities below the size thresh- underlie MoF Order 3055/2009 requirements, then dis- Specific items to be addressed, as applicable are:mental concepts”) as included in AR4 are observed old may prepare a statement of changes in equity and/ closure of the reason and impact is required. • Significant events that occurred during the financial• Accounting policies should be: or cash-flow statement. MoF Order 3055/2009 in AR4 details disclosures that year − Relevant for the needs of the users in the decision- In addition, the annual financial statements for all enti- are required as part of explanatory notes to the annual • Probable evolution of the entity making process ties (regardless of size) should be accompanied by a financial statements. • Research and development activities − “Credible” – present a “true and fair” situation, be written declaration of the responsibility for entity man- Specific disclosure requirements are also indicated for • Purchase of own shares neutral, be prudent and be complete in all significant agement for the annual financial statement and an matters such as: • Branches of the entity aspects Administrator(s) Report on operations. • Accounting policies, including valuation methods • Use of financial instruments and potential associated − Only be changed if required by law or to present Certain groups may be required to complete consoli- and basis for conversion of transactions into national risks more relevant or “credible” information dated financial statements (see further comment be- currency, as applicable • Corporate governance code (for listed entities moreA limitation with MoF Order 3055/2009 is the extent low). • Changes to accounting policies, including impact on details are to be included).to which entities have flexibility in choosing accounting MoF Order 3055/2009 details a specified chart of ac- current financial year results (no retrospective periodpolicies to be applied, meaning that there may not be counts listing to be applied and includes direction for adjustments are made under MoF Order 3055/2009 for MoF 3055/2009 includes comments on aspects of in-consistency in reporting under MoF Order 3055/2009 the mapping of individual accounts to the balance changes to accounting policies) ternal controls and procedures that an entity shouldbetween similar entities (in terms of industry, type of sheet and income statement formats. • Name of entity, main place where activities are per- have in place in relation to its financial records and fi-business and size of operations). The general chart of accounts has the following cat- formed and registered office, main activities, name of nancial reporting. egories: parent and ultimate holding companyDisclosure, reporting and filing • Class 1 – Equity accounts • Related parties for relationship, balances at period Approval and publicationrequirements • Class 2 – Non-current assets end and transactions during the period • Class 3 – Inventories and work in progress • Non-current asset details and movements The annual financial statements include details of theMoF Order 3055/2009 has been effective from 1 Janu- • Class 4 – Third party accounts (receivables and pay- • Information on revaluations, including method of re- persons that have prepared the financial statements.ary 2010 for reporting year ending on or after 31 De- ables) valuation and impact The Administrator (or Chairman of the Administrationcember 2010. • Class 5 – Treasury accounts • Information on financial instruments Board) and the preparer are required to sign the annualMoF Order 3055/2009 differentiates between entities • Class 6 – Expense accounts • Details on participating interests and investments financial statements.that need to meet all financial reporting requirements • Class 7 – Revenue accounts • Disclosures by category for receivables, payables and On completion the annual financial statements andand those that can complete abridged financial report- • Class 8 – Special accounts (off-balance sheet) inventory and other relevant information the Report of the Administrator(s) are presented to theing. The entities are differentiated by “size criteria”. • Class 9 – Management accounts • Provisions, for comments on composition and move- general meeting of shareholders. Specified formats are provided in AR4 for: ments The annual financial statements, the Report of theThe size criteria indicated are: • Balance sheet (full and abridged) • Reconciliation between accounting results and fiscal Administrator/(s) and the Report of the Financial Audi- • Profit and loss statement result and tax payable at period end tor are published in compliance with legislation. Total assets Average • Statement of changes in equity • Information on composition of share capital by type Current publication requirements are for the annual fi- Turnover (at year end) number of (for the period) employees • Cash-flow statement. and securities issued during the year nancial statements and related reports to be submitted EUR million EUR million for the Explanatory notes are to be completed to: • Turnover details by separate activities and geographic to the Trade Register in the location where the entity period • Present information on the accounting regulations markets is registered. underlying the preparation of the annual financial • Information on distribution of net profits, including 31 Dec. year end Over 7.3 Over 3.65 50 statements and the accounting policies used; details on dividends proposed and/or paid A company which does not have its own accounting • Provide additional information that is not disclosed • Commitments and contingencies department and/or a qualified person in charge of the in the financial statements , but which is relevant for • Events after balance sheet date accounting records, and which has turnover greaterAn entity that meets two out of three criteria during the information user to understand the financial state- • Financial auditors fee disclosures than the lei equivalent of EUR 50,000, must contract Page 80 Page 81
    • an authorized person (individual or firm) to prepare its There are certain considerations as to whether consoli- Banks and insurance companiesfinancial statements dated financial statements are required, the first con- MoF Order 3055/2009 provides that where an entity is sideration is if the group parent is a listed company or preparing IFRS financial statements (see comment be- Over recent years, there have been changes in financialCompany Law 31/1990, as modified by Law 441/2006 if the preparation is required by a state institution or for low), then its consolidated financial statements can be reporting for banks and insurance companies to bringindicates that: employees’ information. on the same basis and it does not need to prepare MoF Romanian requirements in line with European Union• Annual General Assembly of Shareholders (AGM) is If the above is not the case, then the next consideration Order 3055/2009 consolidated financial statements. directives and International Financial Reporting Stan-to be held within five months from the financial year is if the company group meets “size criteria”. The re- dards for banks.end [Art. 111 (1)]. quirement for the preparation of consolidated financial The timing for submission of consolidated financial As indicated above, MoF Order 905/2005 requires• Company is to submit the approved annual finan- statements, in this case, is to meet two of the follow- statements is by 31 August following the reporting compliance with IFRS for banks and insurance entitiescial statements (including Administrators’ Report and ing three criteria based on the latest annual financial year end (Law 259/2007). The consolidated financial for the financial year 2007 and subsequent years.Financial Auditors’ Report/Censors Report, where ap- statements: statements are to be audited by a financial auditor and For statutory purposes, lending institutions are requiredplicable) to the Trade Register [Art. 185 (1)] within 15 there should be an accompanying Administrators’ Re- to follow the regulations included in NBR Order 5/2005 Total assets Averagedays of the AGM. Turnover (at year end) number of port and are to be approved by a General Assembly of which harmonizes the accounting regulations applying (for the period)• The Trade Register is to forward an electronic version employees Shareholders and published in accordance with legisla- to lending institutions with those included in European EUR millionof the information contained in the annual financial EUR million for the tion in force. Directives. periodstatements to the Ministry of Finance according to Requirements for insurance / re-insurance brokers re-Norms [Art 185 (4)]. 31 Dec. year IFRS application in Romania porting to CSA are covered under CSA regulations, Over 35.04 Over 17.52 250Modifications to the Accounting Law have extended end which include CSA Order 7/2007.the period for submission of annual financial report the MoF Order 907/2005 provides that credit institutionsMinistry of Finance to 150 days after year end (Law have to prepare an additional set of financial state- Considerations for investors and users of259/2007). Even if a company group meets the requirements of ments prepared in accordance with IFRS for the year financial reporting information the “size criteria”, as indicated above (and it is not list- ending 31 December 2006, while “public interest” en-In addition there are specific submission requirements ed), it is not required to prepare consolidated financial tities are allowed to prepare an additional set of IFRS Historically, Romanian accounting records have beenfor: statements if the Romanian parent entity of the group financial statements. heavily influenced by the use of information for tax• Entities regulated by the National Securities Com- is also a subsidiary entity and its own parent entity is “Public interest” entities are defined as being: compliance purposes.mission (CNVM) where submission of annual financial governed by Romanian law or EU member state law • Lending institutions The primary function of financial/accounting detailsstatements accompanied by the financial auditors’ re- and: • Insurance / re-insurance brokers collection and recording process has been seen byport is required within four months of the financial year • Where the parent entity holds all the shares in the • Entities trading securities on a regulated market many Romanian entities and management/staff withinend. exempted entity, or • Listed companies the entities (both State and private) as being for taxa-• Insurance / re-insurance entities that are regulated by • Where the parent entity holds 90% or more of the • National companies tion compliance and taxation reporting purposes. AsInsurance Supervision Commission (CSA) where sub- shares in the exempted entity and the remaining share- • Entities part of a group for which the parent com- a result of this, the reported information has tendedmission of annual financial statements accompanied holders in or member of the entity have approved the pany prepares consolidated financials statements in ac- to reflect a “form over substance” disclosure, that is,by the financial auditors’ report is required within four exemption cordance with IFRS greater importance is placed on having particular docu-months of the financial year end. A subsidiary does not need to be included in the group • Entities financed by loans not reimbursable or loans ments or recording something in a specific way, rather• For Banks individual financial statements (prepared in consolidation if: guaranteed by the state than in “accurately” reflecting the financial position ofaccordance with NBR Order 5) and consolidated finan- • It is not material to provide a true and fair view of the enterprise at a point in time or indicating whethercial statements (where applicable) are to be submitted the assets, liabilities, financial position, results for the MoF Order 1121/2006 provides further guidance on the results for the period are an appropriate represen-to the National Bank of Romania within four months of period for the consolidated group as a whole the completion of financial statements in accordance tation of what has occurred.the financial year end. • The individual entity: with IFRS for the years ended 31 December 2007 and − Has severe long-term restrictions to hinder opera- onwards. MoF Order 1121/2006 requires that in ad- Audit requirementsDividend distribution tions dition to credit institutions, listed companies that are − Information necessary for the preparation of con- required to prepare consolidated financial statements All entities meeting the size criteria requirements andDividend distribution is based on the statutory account- solidated accounts cannot be obtained without dis- should do so in accordance with IFRS for the year end- public interest entities are required to have a financialing profit of an individual entity. proportionate expense or undue delay ed 31 December 2007 and for subsequent years. There audit. Entities preparing simplified financial statements − The shares of that entity are held exclusively with a is not a requirement to have IFRS financial statements do not require a financial audit, unless required by oth-Consolidated financial statements view to a subsequent resale for non-consolidated listed entities, except for entities er legislation (such as Company Law). AR7 provides guidance for consolidated financial state- in specific regulated sectors (such as financial institu- The financial auditor issues a report, which as indicatedIn addition to comments in MoF Order 3055/2009 [Art ments in relation to: tions). in the Company Law is addressed to the shareholders11 and 12], specific guidance is provided in the accom- • Preparation principles (or equivalent) at the Annual General Meeting of Share-panying “Accounting Regulations – Compliance with • Content of explanatory notes Individual entities, whether preparing IFRS financial holders. Matters to be included in the Report of the fi-the 7th Directive of the European Economic Communi- • Report of Administrator(s) statements or not, is required to prepare and submit nancial auditor are indicated in MoF Order 3055/2009,ties” (AR7). • Audit requirements to the AGM and to the relevant Romanian authorities as well as in the Romanian national auditing standardsConsolidation is required where an entity has the ma- • Approval, execution and publication an annual set of financial statement prepared in accor- and Company Law.jority of voting rights in another entity or substantially • Layout of consolidated balance sheet and consoli- dance with MoF Order 3055/2009. Law 278/2008 (7 November 2008) approved Emergen-controls another entity. dated profit and loss statement cy Order 90/2008 (EO 90/2008). Law 278/2008 enactsIf any entity in the group is a listed company, then con- The guidance provided is consistent with the EU 7th in Romanian legislation the European Union 8th Direc-solidated financial statements must be prepared. Directive. tive requirements for the conduct of statutory audits Page 82 Page 83
    • and for the operation of a public oversight body for the same transaction losses resulted from sales of fixed assets nated in foreign currencies at each month endthe statutory audit function. Aspects of the operation • The norms add clarifications regarding the applica-of Law 278/2008 are subject to issuance of further bility of the going concern principle, the permanence • Financial instruments: new developments are added • Receivables and payables from penalties: recognizedregulations. of methods, the prudence principle, the intangibility of in case of accounting treatment of derivates and trans- on a accrual basisUnder Law 278/2008 the Romanian Chamber of Au- opening balance and the offsetting principle; Clarifi- actions with derivates (spot, swap and forward, option • Correction of errors: the immaterial errors related toditors continues as the body responsible for establish cations regarding changes in accounting policies: pro- transactions) previous financial periods can be corrected through theauditing standards in Romania and to monitor the spective application, starting with the new financial • Transactions with certificates for emission of green- profit and loss accountprofession in relation to membership and qualification year after the decision has been taken house gases • Financial discounts: recorded in the period when arestandards, including establishment of examinations • The substance over form principle and the materiality • Provisions: received/ granted, regardless of the period they relateand membership criteria, ongoing training programs, principle shall be applied by all entities, regardless of − Retirement benefits provisions: additional clarifica- toethical standards and quality review procedures. Under their size (previously, they were applied only by enti- tion included • Incoterm rules are to be applied in determining trans-Law 278/2008 the Romanian Chamber of Auditors re- ties which prepared financial statements with 5 com- − The time-value of money when recognizing a provi- fer of ownership for inventories and for fixed assetsports to and is under the authority of a public oversight ponents) sion • Additional disclosures requirements to the notes tobody. • Bonuses representing the participation of employees the financial statementsLaw 278/2008 includes a requirement that Internation- 4. Modifications regarding accounting treatments: to profit • Clarification for the components of financial state-al Standards on Auditing, as translated into Romanian, • Commercial discounts: the commercial discounts • Share based payments granted to employees ments required for the newly established entitieswill be the Romanian national auditing standards and granted by the supplier, mentioned on the acquisition • Customer loyalty points: recognized as a provision • Changes to the General Chart of Accounts: someincludes additional requirements for public interest en- invoice, adjust the acquisition cost. On the other hand, and not reducing the revenues new account introduced or a change in the existingtities and the statutory audit of public interest entities. the commercial discounts received after the acquisition • Revaluation of cash/ receivable and payable denomi- ones invoice, are recorded in the accounting books sepa-Regulated industries rately, in revenues or expenses accounts, regardless of the period to which the discounts relate (new accountsIf applicable, the report of the independent financial introduced 609/709).auditor is also issued to the regulatory bodies such as • Transaction costs treatment: capitalization allowedCNVM (Securities Commission), CSA (Insurance Indus- for short term securities that are not listed on a regu-try), BNR (National Bank of Romania) and CSSPP (Pen- lated market, as well as in the acquisition cost of thesion Funds) with the annual financial statements. long term securities (for short term securities listed, not allowed).Appendix 5. Clarifications/ completions regarding the accountingThe main areas where MoF 3055/2009 (that has effect treatments:from 1 January 2010) has included additional com- • Borrowing costs: allowed capitalization for interestments and/or clarifications to those in MoF 1752/2005 and commissions related to loansare the following: • Intangible assets: − Research and development costs: additional clari-1. Extended application scope: fications• Subunits devoid of legal personality, with the regis- − Expenses with exploration and evaluation of thetered address in Romania, that belong to legal entities mineral resourceswith Romanian head office or domicile − Distinction between tangible and intangible ele-• Joint ventures between foreign legal entities, regis- ment of an assetstered in Romania, as well as joint ventures between a − Goodwill recognized in the standalone financialRomanian legal entity and a nonresident legal entity statements − Customers lists- not recognized as an intangible2. Amendments regarding the accounting concepts: − Public-private agreements for concession of ser-• Additional details for the recognition of assets (prob- vicesability of future economic benefits) and liabilities (prob- • Leasing transactions: further details and explanatoryability of future outflows of resources) notes• Definition of future economic benefits • Tangible assets:• Definition of revenues and expenses − Costs directly attributable to the construction of a• Listing of users of the annual financial statements tangible asset Camelia Horlaci Garry Collins Country Managing Partner Partner, Assurance Services• Details of qualitative characteristics of the annual fi- − Treatment of demolition costs Advisory Services garry.r.collins@ro.ey.comnancial statements − Treatment of tangible assets suspended from use camelia.horlaci@ro.ey.com www.ey.com − Extension of the useful life of a fixed asset www.ey.com3. Amendments regarding the accounting principles: − Impairment of fixed assets This update is accurate to the best of our knowledge at the time• In relation with the accrual basis of accounting prin- − Change in destination of the fixed assets (from FA when this overview was prepared. It is, however, meant as a gen-ciple, there is reference to the matching principle of to inventories) eral guide and comes with the recommendation that professional advice be sought before any action is takenrevenues and expenses resulting at the same time from − Presentation in the income statement of gain or Page  Page 
    • SYSGENIC PRODUCTSiBS Financials: specialized application suite for trading and brokerage companies: on-line tradingplatform, back-office, portfolio management, technical anlysis module.iBS Xtended – ERP modules including: BI, HR&payroll, production planning and controlling.Sub-products from the same ERP class suite of applications: • iBS Distrib - ready-to-use modules specially developed for distribution companies, integrating a SFA module for mobile devices; • iBS Xpress - ready-to-use integrated module for small companies: accountancy, HR and payroll, stocks, contracts’management, BI; • iBS SaaS – a new software as a service concept that includes the main integrated modules for any business; • iBS Production planning&controlling – customized modules for production facilities, including MRP and controlling.iBS Medicals: specialized solution for medical clinics, including accountacy, hr&payroll andcontracts’management modules. Specialized modules: iBS Laboratory, iBS Hospital.Fresh industry trading portal: www.efresh.comCustomized software development services: • Dedicated-team collaboration (virtual teams) • Fixed-price collaboration (project based)IT business knowledge: • Financial and capital markets: trading platforms, exchange connectivity solutions, back- office & front-end applications, trading portals • Banking applications • Microsoft CRM and Navision related customizations • Medical and health industry applications integrated with multiple laboratory equipments.Technology competences:Microsoft and related applications, such as: .NET, ASP.NET, C/C++, SQL 2005/2008, WPF, WCF,Silverlight, AJAX, SharePoint 3.0, CRM 4.0, Navision and Axapta, Oracle.Certifications: • CMMi Level 3 – since 2007; ISO 9001:2000 – since 2005 • Microsoft Gold Cerified Partner – since 2005 (including ISV, BI, Mobility Solutions and DMS competencies); Oracle Partner – since 2007 • ISTQB (International Software Testing Qualifications Board – Advanced level)Web: www.sysgenic.com, www.2ibs.ro; E-mail: office@sysgenic.comPhone: +40 265 218 397Dragos Pahontu – CEOAdrian Lupau – Sales Manager
    • Tirgu Mures TelevisionAcum se intampla, acum ai aflat!( You find out when it happens!). You are the first toknow and we are proud that you heard it from us! Simple, impartial and straight forward!As you like it!Tirgu Mures Television. News. Information. Events. Here, each moment is lived to thefullest!Tirgu Mures Television has first reached its audience in January 2006. 4 years later up to 90% ofMures county stays connected to their surrounding realities through us. Our professionals analyzepieces of information and events foreseeing the changes and impact they will have in the com-munity you live in. every week people that have the power to decide are brought in front of theaudience to have an open dialog and identify solutions.From the economic to the social field, from politics to public administration, from culture to health,we cover them all, our programs cover them all.Our viewer is our primary concern ! We are responsible towards our audience, we are responsibletowards our community. We know that television has the power both to identify and legitimizevalue and truth, and to destroy them. Therefore we choose and verify with outmost responsibilitythe events that become news and the news that become events.This is another reason why Tirgu Mures Television has become the most credible media source inMures county.When we talk about being informed, Tirgu Mures Television is the best choice one can make, eitheras a viewer or as a publicity client. Departments like marketing, PR , online and production give ourcustomers targeted services that have proven their efficiency.Through our social and humanitarian campaigns we try to fulfill our duty as an important player inour local community.None the less Tirgu Mures Television is recognized as being a journalism school. Many of today’sprofessional reporters and TV specialists have started their careers here and this makes us proud.Today our team is made up of media people recognized for their professionalism and training, manyof them earning their title as trendsetters.Our mission is to satisfy our viewer’s need of just information and to permanently keep him in touchwith the community. Page 89
    • Tirgu Mures Radio StationRadio Tîrgu-Mureş is a part of the National Broadcasting Company named Radio Romania, withan estimated audience of one million listeners in the whole Transylvania area. It first started tobroadcast on the 2nd of March 1958 on 1323 kHz AM (on medium frequency) and since then wehave improved our quality of radio programs and sound receiver with other five antenna, two onAM (1197 kHz and 1593 kHz) and three on FM (102.9 FM; 98.4 and 98.9 MHz frequency), the lastone being the powerful antenna. We are a regional Romanian broadcasting station located in thecenter of country and we broadcast shows and events in 3 main languages: Romanian (which is theofficial language), Hungarian (due to the large Hungarian community that lives here) and Germanlanguage. At this moment, the RTM programs are well received in 36 cities and 1100 villages in theTransylvanian districts of Mureş, Harghita, Covasna and Braşov. We also have signals of receivingour programs from listeners located in other areas of the country, such as the districts of Bistriţa,Cluj, Alba, Sibiu, Baia Mare, Vâcea and Galaţi and even abroad, from radio amateurs – as you are- coming from Finland, Germany, Holland, Norway, Israel, Ukraine and Greece.Radio Tîrgu-Mureş mainly offers the following services:• Producing of radio programs• Broadcasting• Musical recordings• AdvertisingIf you would like to find more information about our radio stationplease visit our web page at www.radiomures.ro. Page 91
    • Coperta 3Coperta Interioara Spate Coperta 
    • ƒ Maternity Coperta 4 ƒ ƒ ƒ General Surgery Plastic Surgery Cardiovascular Surgery ƒ Neurosurgery ƒ Gynaecology ƒ Urology ƒ ORL ƒ Orthopaedics ƒ Internal Medicine ƒ Neurology ƒ Oncology - Palliative Care ƒ Medical and Sports Rehabilitation ƒ Laboratory ƒ Pharmacy Coperta ExterioaraNova Vita Medical Center is one of the largest private hospitals in Romania, offering superiormedical services in a multitude of specialties.Located in the heart of Tîrgu Mureș, Nova Vita Medical Center welcomes you with a teamof experienced specialists, whose skill and dedication, combined with the use of the latestadvancements in medical technology, assure the highest quality medical services. SpatePlastic Surgery Medical and Sports RehabilitationNova Vita Medical Center offers the services The Medical and Sports Rehabilitation Centerof specialist cosmetic surgeons with at Nova Vita is one of the most well equippedextensive experience in the fields of plastic, rehabilitation centers in the country, providingreconstructive and aesthetic surgery, providing a complete range of rehabilitation services tooutstanding results at affordable prices. patients and athletes.Nova Vita Medical CenterLiviu Rebreanu str. 29/A, Tîrgu-Mureș, RomâniaTel.: +40 (0) 0265-260.460, +40 (0) 0365-882.244receptie@nova-vita.ro Coperta 4www.nova-vita.ro