Accounting, business and tax news July 2016
Accounting, business and taxes news July 2016
Business news
Danish firm and Dutch pension fund – partners to buy land in Romania
FirstFarms, a company owned by Danish investors, and Dutch pension fund AP Pension are about to close a financial partnership to acquire land in Romania.
They plan to exploit 20,000 hectares in the next four years. FirstFarms exploits land in Romania and Slovakia, and is currently close to completing a transaction of EUR 50.4 milion for selling 3,000 hectares in the east of Romania, a granary and some buildings to the Dutch pension fund AP Pension.
After the deal is completed, FirstFarms will continue exploiting the plor, but as tenant.
Romanian construction market increased by 10% in 2015
The local construction market increased by 10% in 2015 over the previous year, reaching EUR 16.4 billion.
The Romanian market still shows a high potential, due to the gap between Romania and European Union on real estate development and construction.
The residential segment accounted for the biggest share in the construction field last year, namely 34%, followed by the non-residential sector, with 26%, and infrastructure, with a 23% share.
IMF: Minimum salary increases faster than productivity
The minimum salary increased in Romania faster than labor productivity, which affects the local companies’ productiveness, discourages investments, and curves the employees’ desire to improve, according to the IMF’s resident for Romania and Bulgaria.
He also added that a higher minimum salary can determine more employees being transferred to the gray economy, which means that their revenues will not be fully declared and taxes will not be fully paid.
Tax news
Finance Ministry: Romania cannot afford to cut social security contributions
The Romanian Finance Ministry, Mrs Anca Dragu, recently declared that the social security contributions (CAS) cut by 5 percentage points, which has recently been approved by the Senate, would deprive the State budget of some EUR 1.7 billion per year.
She added that there is no room for such measure in 2017, as Romania is already expected to reach a budget deficit limit of 2.8% of its GDP next year, without the CAS cut.
Macroeconomic indicators
RON / EUR ex-rate evolution
31.12.2011: 4.3197
30.12.2012: 4.4287
31.01.2013: 4.4847
31.12.2014: 4.4821
31.12.2015: 4.5245
31.01.2016: 4.5386
29.02.2016: 4.4634
31.03.2016: 4.4582
30.04.2016: 4.4774
31.05.2016: 4.5039
30.06.2016: 4.5220
Inflation rate evolution
2011: 5.79 %
2012: 3.33 %
2013: 3.98 %
2014: 1.07 %
2015: – 0.90%
Jan. 2016 / Jan. 2015: -2.23%
Feb. 2016 / Feb. 2015: -2.68%
Mar. 2016 / Mar. 2015: -2.98%
Apr. 2016 / Apr. 2015 : – 3.25%
May 2016 / May 2015: -3.46 %
Tax deductible loan interest rate
RON: 1.75%
EUR: 4%