June 2017, tax and business news
Business news
Romania registered in Q1 2017 the biggest economic growth from the EU countries
According to the Romanian Statistic Institute, Romania registered in Q1 2017 an economic growth of 5.6% comparing to the same period of 2016
Comparing to Q4 2016, the economic growth was of 1.7%.
Romania has the biggest economy in Balkan area
The Romanian Gross Domestic Product of Q1 2017 was bigger than the Greece’s GDP of the same period. Greece was till now the biggest economy of Balkan area, excepting Turkey.
Also, Romania‘ GDP was very close to the one of Czech Republic and Portugal.
Tax news
Multinational companies running activity in Romania will file the reports in the state of their tax residency, which will be followed by exchange of information between EU member countries
Last week the Romanian Government adopted an Ordinance regarding the introduction of new measures for fighting against the tax evasion and tax planning, by settling the automat exchange of information from the reports which the multinational groups of companies will have to deposit in the EU country of the mother company.
This Ordinance introduce in Romania the EU Directive no 2016/881 regarding the automat exchange of information.
According to these documents, Romania will use the information for analyze the transfer prices and the risks related by the tax base erosion and the transfer of profits.
In this respect, the Department of the Tax Authority monitoring the transfer prices will be strengthened, as recently declared as well.
Companies having no turnover or in loss position will be monitored by the Tax Authority
According to the Government program, the Tax Authority will create a new Department, specialized in monitoring the companies having no turnover and/or loss for more than three years in a row.
Also, the same Department will monitor the loans granted by the shareholders to their companies.
Macroeconomic indicators
RON / EUR ex-rate evolution
30.12.2012: 4.4287
31.01.2013: 4.4847
31.12.2014: 4.4821
31.12.2015: 4.5245
31.12.2016: 4.4511
31.01.2017: 4.5006
28.02.2017: 4.5115
31.03.2017: 4.5446
30.04.2017: 4.5289
31.05.2017: 4.5636
Inflation rate evolution
2012: 3.33 %
2013: 3.98 %
2014: 1.07 %
2015: – 0.90%
2016: – 0.54%
Jan. 2017 / Jan. 2016: 0.05%
Feb. 2017 / Feb. 2017: 0.20%
Mar. 2017 / Mar. 2016: 0.18%
Apr. 2017 / Apr. 2016: 0.61%
Key indicators
– VAT: 19%
– Profit tax: 16%
– Microenterprise tax: 3% / 1%
– Dividend tax: 5%
– Income tax: 16%
– Total salary taxes: cca 60-70% in addition to the negotiated net salary
– Minimum gross salary: 323 EUR
– Tax deductible loan interest rate:
– RON: 1.75%
– EUR: 4%