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Kinstellar launches its regional, comprehensive Tax Service Line
Kinstellar is pleased to announce the launch of the Tax Service Line, marking a significant step in the continued development of the Firm’s integrated, full-service platform. The new Tax Service Line strengthens Kinstellar’s ability to deliver comprehensive, end-to-end tax and legal support across its jurisdictions. The regional Tax Service Line will be led by our reputable tax lawyer and tax advisors and Co-Heads Maja Mayrhuber (Partner, Austria) and Theodor Artenie (Counsel, Romania), who will drive the strategic direction of the practice area and oversee the rollout of the Service Line across the Firm. They will be supported by a core regional team of experienced tax experts, including Atanas Mihaylov (Counsel
When a ‘group instruction’ becomes a transfer pricing and directors’ liability problem
A recent Czech Supreme Administrative Court decision (3 Afs 165/2024‑67) is a timely reminder that transfer pricing is not only about invoices and formal agreements. For tax purposes, economic reality prevails: if a Czech subsidiary absorbs costs or risks arising from a parent company’s strategic decision without arm’s‑length compensation (or other adequate consideration), the tax authorities may deem it a controlled transaction and adjust the tax base. This remains true even if the strategic instruction is wholly informal or unwritten. There is also a second, often underestimated, layer not explicitly addressed in the judgment: the legal obligations of local management under Czech law. And although this may
Romania abolishes the 1% deductibility cap for intra-group IP and management/advisory expenses
At the beginning of 2026, we informed you about a significant tax reform enacted by the Romanian legislature, introducing a new limitation on the deductibility of certain intra-group expenses. Under this measure, taxpayers with turnover below EUR 50 million (not subject to the minimum turnover tax, i.e., IMCA) were allowed to deduct expenses related to intellectual property rights and management and advisory services received from non-resident affiliated parties only up to 1% of total expenses, with any excess being treated as non-deductible for corporate income tax purposes. The measure has now been repealed. Through Government Ordinance no. 6/2026 published on 30 January 2026, the Romanian legislature
Profit or price? Decoding the new divide in VAT and transfer pricing
For a long time, tax authorities and practitioners lived with the growing fear that every Transfer Pricing (TP) adjustment would automatically trigger a VAT consequence. However, two recent developments at the CJEU have provided a much-needed map for this terrain. While the Court’s ruling in Arcomet (C-726/23) reinforced the transactional nature of VAT, AG Kokott’s recent Opinion in Stellantis Portugal (C-603/24) suggests a vital stopping point: VAT cannot simply "swallow" profit-level adjustments. The Arcomet Standard: VAT follows the transaction, not the method The CJEU’s judgment in Arcomet sent a clear message. When a contract includes price remuneration and revision clauses, using a TNMM-based mechanism
Major tax and procedural changes in Romania
On 15 December 2025, the Romanian Parliament adopted Law no. 239, which will enter into force on 18 December 2025. The law introduces significant amendments to the Fiscal Procedure Code, the Fiscal Code, and other related regulations. The main changes are presented below: Legislative updates regarding legal entities As of 1 January 2026, taxpayers which had in the previous year a turnover below EUR 50 mil. (note: those not subject to IMCA), incurring expenses related to intellectual property rights, management, advisory from non-resident affiliated parties, where such expenses exceeded 1% of the total expenses according to 2024 accounts, may deduct these expenses, in the current tax year, up to 1%
New obligations for companies: what you need to know about the second 2025 Tax Package
The law recently published in the Official Gazette no. 1160 of 15 December 2025 brings important changes to tax and corporate legislation. Obligation to hold a bank account All legal entities will be required to open a payments account in Romania for the entire duration of carrying out their activity; This formality must be completed within 60 days since incorporation, for companies established after the entrance into force of the law; Sanctions: Penalties ranging from RON 3,000 to RON 10,000. Being declared inactive by the fiscal authority. Companies organised and functioning as provided by Law no. 31/1990 that remain inactive for more than
Austria’s Crypto Reporting Act: Clear rules and tax transparency for investors
With the new Crypto Reporting Act ("Krypto-Meldepflichtgesetz" – Krypto-MPfG) effective from 1 January 2026, Austria aligns with international standards for transparency and tax compliance in the digital asset space. This reflects the EU’s broader push for harmonised regulation under DAC8 (the eighth amendment to the Directive on Administrative Cooperation in Direct Taxation, which mandates the automatic exchange of information on crypto-asset transactions between the Member States), the OECD’s Crypto-Asset Reporting Framework ("CARF"), and the EU’s Markets in Crypto-Assets Regulation ("MiCAR"). The new legislation implements international standards and sends a clear message: the regulatory net is tightening
Key fiscal updates in Romania: Government Emergency Ordinance No. 22/2025 on the VAT regime
The Romanian government has adopted GEO No. 22/2025 introducing significant amendments to Romanian VAT legislation and directly affecting small enterprises and VAT registration procedures. The new rules transpose EU provisions into domestic law and aim to ensure a more uniform application of the small business exemption regime across the EU effective 1 September 2025. 1. Updates to the special VAT exemption regime for small enterprises Annual turnover limit for VAT exemption eligibility has increased from RON 300,000 to RON 395,000 (approx. EUR 77,000). Transitory provisions are introduced for companies that exceeded the previous eligibility threshold in August 2025. 2. Cross-border VAT simplification
DR-23: New non-reimbursable funding opportunity in Romania for companies in the food industry through European Funds
A new funding opportunity in Romania—the DR-23 Investments for the Processing of Agricultural Products Aid Scheme—has been launched following its publication in the Official Gazette, offering significant financial support to businesses operating in the agri-food sector. With a total budget of approximately EUR 165 million, this scheme is designed to support a wide range of companies operating in the food industry in Romania, including but not limited to bakeries, milling units, biscuit and pasta producers, chocolate and cocoa manufacturers, ice cream producers, and even beer makers. Who can apply? The funding scheme is open to a variety of Romanian enterprises in the agri-food sector, including:
Legislative amendments in Romania regarding advance pricing agreements
The Romanian tax authorities have recently enacted legislative changes concerning advance pricing agreements (APAs), with the aim of enhancing the regulatory framework and supporting tax compliance. Key amendments include: The introduction of the possibility to request the issuance of an APA for historical transactions, with retroactive application of up to five years, subject to conditions that will be detailed in secondary legislation. The option for the tax authorities to suspend tax audits for periods covered by submitted APA requests, in order to prioritise their resolution. A revision of the mutual agreement procedure for the avoidance of double taxation, aimed at facilitating the resolution
Important fiscal changes in Romania starting August 2025 / January 2026
On 25 July 2025, the Romanian Parliament adopted Law 141/2025 regulating a series of important fiscal changes that will enter into force starting August 2025, as summarised below. ⇒ Increase of the dividend tax from 10% to 16% for all taxpayers obtaining income from dividends, i.e., companies, individuals, and non-residents. The increased tax applies to dividends distributed starting 1 January 2026. Certain transitory rules will apply to dividends distributed based on interim financial statements prepared during 2025 (or a modified fiscal year starting in 2025). ⇒ Increase of the supplementary turnover tax for credit institutions (including banks) as follows: from 2% to 4% for the period 1 July
Kinstellar advises Special Flanges on the acquisition of Romanian industrial manufacturer Vilmar
Kinstellar is pleased to announce that it has advised Special Flanges, a leading Italian manufacturer of high-performance forged components, on the acquisition of 100% of the shares in Vilmar, a Romanian industrial company with over 50 years of experience in the production of engineered equipment for critical applications. The transaction marks Special Flanges’ first direct investment in Romania and represents a key milestone in the group’s strategic expansion across Central and Eastern Europe. The acquisition was carried out by the Wise Equity V fund managed by Wise Equity SGR – through its subsidiary Special Flanges – and involved the transfer of Vilmar from the French group Genoyer. The integration will create