Accounting, business and tax news March 2016
Accounting, business and taxes news March 2016
Business news
Piraeus Bank closes 19 branches in Romania
Romanian subsidiary of the Greek bank Piraeus will close 19 branches in the near future.
This operation is seen in the market as a preparation in view of the future selling of the Romanian subsidiary intended by the Greek shareholders.
Statement of European Commission’s representative about Romania’s economic growth
“Romania is in the top of the economic growth in European Union, but in the same time it is in the top of the poverty. This fact tells me that the current growth model does not work in citizen’s interest. It is not a model to be encouraged by us” has recently declared Mrs Filote when presented the country report of European Commission delegation in Romania.
But, she highlighted the explanation of this paradox: in Romania, competitiveness is based on low salaries, not on quality of goods or services produced.
She also specified that a key-element of the present economic environment is the re-launching of the public investments, stating that Romania “is still well” regarding the State Budget deficit, but the European Commission is worried about the trend forecasted for following months, as the economic discipline is based on cutting the expenses and not on increase of incomes.
Decrease of Romanian work force
Every year, around 80,000 Romanians go work abroad, e.g. the equivalent of the population 24 villages. Some 80% of the Romanians working abroad are from the rural areas.
About 2.5 million Romanians are currently working in other countries whereas only 5 million Romanians are active in the country.
A recent study of the Romanian National bank showed that the 2.5 million migrant workers would have brought an additional 11.2 billion EUR to the GDP if they had been worked in the country.
Tax news
Minimum gross salary will increase as of 01.05.2016
The Finance Ministry recently confirmed that the minimum gross salary will increase at 1,250 RON (cca 280 EUR) as of 01.05.2016.
All the work contracts including gross salaries below this limit will have to be amended accordingly.
Also, the pension insurance contribution, which is limited for high salaries according to this minimum gross salary, will increase starting same date.
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
Inflation rate evolution
2011: 5.79 %
2012: 3.33 %
2013: 3.98 %
2014: 1.07 %
2015: – 0.90%
Jan. 2016 / Jan. 2015: -2.23%
Tax deductible loan interest rate
RON: 1.75%
EUR: 4%