Accounting, business and taxes news August 2015

Business news

The Romania’s GDP increased by 3.7% in semester I comparing to same semester of 2014​

Romanian National Statistic Institute officially declared that the Romania’s GDP increased by 3.7% in semester 1 comparing to same semester of 2014.

Also, GDP of trimester II of 2015 increased by 0.1% comparing to trimester I of 2015 and by 3.2% comparing to trimester I of 2014.

Flash news: VAT quota modification

This morning the Government and opposition parties held discussions regarding the modification of the Fiscal Code.

Main agreement was regarding the VAT quota: this will decrease to 20% as of 01.01.2016 and to 19% as of 01.01.2017.

They declared that the modifications of Fiscal Code will be approved by the President of the country and will finally enter in force.

Tax news

New modification of the documents needed to VAT registration

ANAF President Order no 1966/24.07.2015 modifies the form 088 „Declaration on its own responsibility for evaluating the intention and capacity to run VAT transactions“.

Any Romanian company intending to become VAT payer must file this form, joined by cca other 15 documents:

– when the company is set up

– when the company VAT code was cancelled by the tax authority and it wants a new one

– when the company did not exceeded the turnover of 220,000 RON, but it wants to become VAT payer

– when the company exceeded the turnover of 220,000 RON. This last option can generates a hilarious situation: it is possible that a company obliged to register itself as VAT payer because exceeding the threshold turnover, to not meet the legal conditions to become VAT payer listed by form 088. In this case it receives a VAT code, which will be in the same cancelled by the tax authority!

Salary tax exemption for IT employees

Finance Minister Order no 835/16.07 regarding the IT activities details the conditions to apply article 55 align. (4) of the Romanian Fiscal Code, which stipulates that the IT employees are salary tax exempted:

– type of the job and job description

– the minimum content of the justifying file

– conditions to be met by the employer company, e.g which activities are recognized as IT activities

Basically, the exemption can be applied by the companies having as object of activity the IT activities, and which realized in the previous year sales of IT software of at least 10,000 USD/employee (the maximum number of employees who will benefit of this exemption is to be calculated by dividing the previous year sales of IT software at 10,000 USD).

Macroeconomic indicators

RON / EUR ex-rate evolution

31.12.2010: 4.2848

31.12.2011: 4.3197

30.12.2012: 4.4287

31.01.2013: 4.4847

31.12.2014: 4.4821

31.01.2015: 4.4424

28.02.2015: 4.4381

31.03.2015: 4.4061

30.04.2015: 4.4031

31.05.2015: 4.4395

30.06.2015: 4.4931

31.07.2015: 4.4075

Inflation rate evolution

2010: 6.09 %

2011: 5.79 %

2012: 3.33 %

2013: 3.98 %

2014: 1.07 %

Jan. 2015 / Jan. 2014: 0.41%

Feb. 2015 / Feb. 2014: 0.40%

Mar. 2015 / Mar. 2014: 0.79%

Apr. 2015 / Apr. 2014: 0.65%

May 2015 / May 2014: 1.16%

Jun. 2015 / Jun. 2014: – 1.55%

Jul. 2015 / Jul. 2014: – 1.67%

Tax deductible loan interest rate

RON: 1.75%

EUR: 6%

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