Accounting, business and taxes news September 2015
Business news
The biggest Romanian insurance company got bankrupt
Romanian Financial Surveillance Auhority decided that the Astra Asigurari, the biggest Romanian insurance company (4 milions of insured persons) would be declared bankrupt. Same time, its functioning authorization was withdrawn.
The decision was taken after the failure of the attempts to improve its financial situation (Astra planned in the past a 400 million EUR share capital increase or a taking over by AXA).
Banca Transilvania took over Volksbank
The Romanian National Bank authorized the taking over of Volksbank by Banca Transilvania, as of 31.12.2015.
Banca Transilvania is the third bank in Romania according to the assets’ value, after BCR and BRD, having a market share of 9.8%.
Nicolae Danila, counselor of the RNB Governor: „Romania will not join Euro zone before 2022“
Nicolae Danila recently stated that Romania will not join Euro zone before 2022 because it needs at least 30 months of preparation and the process supposes a country project still not yet drafted.
Tax news
Fiscal Code modifications have been approved by the deputies
In the near future, the modifications will be approved by the President Klaus Johannis as well, who does not have the right anymore to reject them.
The main modifications are:
– VAT quota – will decrease from 24% to 20% as of 01.01.2016 and to 19% as of 01.01.2017
– Dividend tax for physical persons: will decrease from 16% to 5% as of 01.01.2017
– Local tax quota for physical persons houses – instead of a fixed quota of 0.1% from the value, it will be introduced a variable quota of 0.08 – 0.2% as of 01.01.2016
– Microenterprises tax – as of 01.01.2016 a new 1% quota will be introduced for the new set up microenterprises, for two year after the set up, if they have at least one employee
– Local tax quota for physical persons houses used as company’s office – in case the company runs an economic activity in a house which is its head office, the local tax will be 10 to 20 times bigger than the normal tax
– Local tax for the buildings owned by companies – currently, the tax quota is between 0.25% and 1.50% from the bookkeeping value, no matter the destination of the building. As of 01.01.2016, the local tax quota will be:
For residential buildings – a tax quota of 0.08% – 0.25%from the bookkeeping value,
For non-residential buildings: a tax quota of 0.2% – 1.3%from the bookkeeping value,
For buildings with mixed usage: a prorated tax according to the square meters used for the two above mentioned destinations.
The taxable value of the buildings will have to be updated every 3 years on the basis of a re-evaluation report. If not, the tax quota will be 5% (currently, the tax quota for the buildings not re-evaluated in the last 3 years is between 10% and 20% and for the buildings not re-evaluated in the last 5 years the tax quota is between 30% and 40%).
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
31.08.2015: 4.4302
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%