Accounting, business and taxes news January 2016

Accounting, business and taxes news January 2016

Business news

Interbank reference interest rate in RON has historically decreased

The interbank reference interest rate (ROBOR), which is the reference rate for the calculation of the loans granted by the Romanian banks in RON, historically dropped under 1%, as a consequence of the low inflation rate and of the high market liquidity.

The banks usually use this reference rate when they grant a loan, to which they add a margin.

As a consequence, the lending rate in RON is expected to decrease under 6.6%, the level registered in November 2015, which is one of the lowest from recent Romanian history.

Romania’s EU funds absorption rate

Romania’s EU funds absorption rate for the period 2007 – 2013 reached 74% at the end of 2015, much more than the 60% level reached at the end of November 2015.

Tax news

VAT registration procedure – update

The Romanian companies that intend to declare as VAT payer must follow a procedure which basically means a credit scoring – a company that wants to be VAT payer is obligated to obtain a certain number of points after providing data regarding:

– The head office of the company

– The background of the Shareholders and Administrators

– The economic field it activates

– The way the bookkeeping is kept

– The fact if the Administrator(s) is/was Shareholder or Administrator in a Romanian company with high fiscal risk (e.g. having unpaid fiscal debts, being declared fiscal inactive by the tax authority etc).

Starting 2016, the Romanian companies that modify the head office address or replace one of the Shareholders / Administrators must follow the above mentioned procedure, otherwise they will lose the VAT registration code.

Microenterprise definition in 2016

The Romanian Fiscal Code stipulates that a microenterprise is the company that registered in 2015 a turnover less than 100,000 EUR. It must be privately held and the incomes from consulting services must be less than 20% of the turnover.

The taxation of the microenterprise is:

– 3% of the turnover for the microenterprises having no employees

– 2% of the turnover for the microenterprises having one employee

– 1% of the turnover for the microenterprises having more than two employees

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

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%

Tax deductible loan interest rate

RON: 1.75%

EUR: 4%

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