Accounting, business and tax news June 2016

Accounting, business and taxes news June 2016

Business news

Competition Council investigates big pharma groups

Romania’s Competition Council has started an investigation at Novartis Pharma Services Romania, the local subsidiary of the Swiss pharma group Novartis.The investigation targets a posible abuse of dominant position by implementing a pilot project for direct distribution to certain pharmacies.

The Competition Council also investigates the local subsidiary of the British group GSK for a possible breach of the competition law.

Continental expands its activity in Romania

German automotive group Continental will invest 12 mil EUR to expand its electronic car parts factory in Timisoara by 12,000 sq.m. The work will be completed by the end of this year, the total surface being 21,000 sqm. The additional space will be used for offices, storage and social areas.

The company also wants to employ over 1,000 new people in Romania in Research & Development and production segments. Continental has seven production units and four R & D centers in Romania, which are located in Timisoara, Sibiu, Carei, Brasov and Iasi. The total investment of the group in Romania amounts 1,1 bil. EUR.

Romania – high economic increase

The Romanian National Institute announced that the Romanian economy increased in the first quarter of 2016 by 4.3%, one of the highest rate from EU countries.

Tax news

Procedure of obtaining the VAT code, to be simplified

Recently, the President of ANAF (National Agency for Tax Management) confirmed that there are advanced discutions regarding the simplification of the legal framework of obtaining the VAT code.

ANAF intends to ask less documents from the companies wanting to become VAT payers: document proofing the head office address and documents regarding tax history of the shareholders and administrators.

New law regarding public acquisitions

The recently published Law no 98/2016 regarding the public acquisitions is the new legal framework to be respected by the contractant public authorities when buying goods, services or works and by the companies intending to sell them to State entities.

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

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%

Tax deductible loan interest rate

RON: 1.75%

EUR: 4%

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