Accounting, business and tax news September 2016

Accounting, business and taxes news September 2016

Business news

Finance Ministry intends to simplify the property tax

Bureaucracy regarding the local tax on properties will be simplified so it does not require evaluation anymore, declared recently the Romanian Finance Ministry.

Currently, the evaluation is necessary to determine the taxable value of the properties owned by the companies, as well as by individuals who own non-residential buildings or property that is used both for housing and an economic activity.

For residential buildings, the taxable value is currently determined based on a table in the Fiscal Code. The intended modification is to create a data base with different coefficients for the residential and non-residential segment.

Naspers CEO: Romania is among our top 4-5 markets

Romania has massive potential to become a tech hub in the region and in Europe due to its engineering and software creation talent, Bob van Dijk, the CEO of Naspers – one of the biggest technology investors in the world, said in a press conference in Bucharest.

“Romania is one of our core markets. In fact, it’s among our top 4-5 countries around the world in terms of return on investment” van Dijk said.

The fund’s local investments, which include eMAG, the largest local online retailer, and OLX, the biggest classifieds site, are on a loss, but that is due to massive investments carried out in the past few years.

The Naspers executive thinks that they will develop into profitable companies in a few years as the local online market grows. He bases his optimist estimates on the population size and the increase in quality internet access, the fast growth pace of the local eCommerce market, as well as the quality of the people running the local businesses.

Tax news

Possible upcoming modification of salary taxes

There are some rumours regarding a possible upcoming modification of the main salary taxes – pension insurance and health insurance.

The modification would regard the elimination of the pension insurance and health insurance to be paid by the company, but would increase the ones paid by the employee (almost with same amount).

In this way, the net salary agreed when the employee at the time he/she was hired would be siggnificantly diminished, which would lead to a re-negociation of the salaries in order to bring them to the same level, but by generating large aditional salary expenses.

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

31.07.2016: 4.4654

31.08.2016: 4.4488

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 %

Jun. 2016 /Jun. 2016: – 0.70%

Jul. 2016 / Jul. 2015 : -0.78%

Tax deductible loan interest rate

RON: 1.75%

EUR: 4%

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