Accounting, business and taxes news February 2016

Accounting, business and taxes news February 2016

Business news

Romanian population decreases and gets older

A recent study shows that in 2015 in Romania 203,000 children have born and 263,000 people have died. This is a trend which will continue in the next years, due to economic and social conditions: in 2050, Romania will have 14 million people, comparing with 18 million today

Another worrying issue is the fact now one of the seven Romanians is older 65 years, but in 2016 the ratio will be one out of three.

It will lead to important difficulties of the educations health, unemployment and pension insurance systems which will require immediate fiscal and economic actions.

Tax news

Tax deductibility of medical services offered to employees in 2016

The work medicine expenses are fully tax deductible.

In case of the contracts concluded by the company with medical services providers for supplying medical services to the company’s employees or relatives on the basis of monthly subscription, the expenses are not tax deductible.

In case of the payments made by the company for its employees for private pension or private medical insurance, they are fully deductible. Still, these payments are considered as salary benefit at the level of the employee if they exceed 400 EUR/year/employee for each of them.

Tax deductibility of various aids offered to employees in 2016

At the level of the employee

The gifts / the gift vouchers are not considered as salary benefit if they are under the limit of 150 RON/employee and 150 RON/employees’ child, for the following occasions: Easter, Christmas, Woman’s day (8th of March) and Child’s Day (1st of June).

Also, the gifts / the gift vouchers are not considered salary benefit when distributed in case of social events: funeral help, disease help, birth help, house calamity help etc. They should be randomly granted, not on recurrent basis.

All the other repartition of gift vouchers to the employee or employees’ children, or a repartition above the mentioned limit, is considered as salary benefit and taxed as a gross bonus on the payroll of the month they have been distributed.

At the level of the company

In order to be considered as tax deductible, the value of the gifts, gift vouchers or money granted for social events do not have to exceed the limit of 5% of the salary expenses.

It is strongly recommended that the situations when the help for social events is due to be clearly listed in the Internal Regulation Book of the company. With this occasion the company could include activities like a various range of gifts, Company’s Day activities, team building etc.

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: 4.5337

Inflation rate evolution

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%

Aug. 2015 / Aug. 2014: -1.87%

Sep.2015 / Sep. 2014: – 1.73%

Oct. 2015 / 0ct. 2014: – 1.64%

Nov. 2015 / Nov. 2014: – 1.14%

Dec. 2015 / Dec. 2014: – 0.93%

Tax deductible loan interest rate

RON: 1.75%

EUR: 4%

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