April 2017, tax and business news
Business news
Draft of Law to increase the salaries in State Budget sector
The Government recently communicated the principles on which the new Law of Unitary Remuneration of the Budget Sector Employees will be issued.
According to this draft of Law, all the State employees will be paid using the same indicators and the same salary thresholds, according to their skills, experience and studies.
The draft of Law proposes big increases of the salaries in the State sector, between 50% and 250% for following 4 years.
The additional impact of the salary increase to the State Budget is 32 billion RONs (cca 7 billions EURs) till 2022.
There are already a lot of discussions regarding the way this amount will be obtained from the State, as the loans are not a valid option, due to EU financial constraints. It seems that the most facile one will be an abrupt increase of the taxes.
Ford employs 1,000 people at Craiova plant
In the near future, Ford will employ almost 1,000 people, workers and technicians, to support the increase of production of small class SUV Ford EcoSport.
The investment made by Ford to produce the new model is around 200 million EURs. The cars will be sold all over Europe, except Russia.
Tax news
Possible future change regarding dividend’s payment
Currently, a group of members of the Senate and of the Deputy Chamber registered a draft of Law to modify the Romanian Company Law and of the Bookkeeping Law.
One of the modifications would allow the shareholders of the companies to take dividends during the year, each trimester, in amount of half of the accounting profit.
Romania has the smallest gross minimum salary in Europe, but the most taxed one
A recent study realized by KPMG stressed the fact that, despite its rapid increase of the last years, the minimum gross salary from Romania is the smallest from Europe (except Bulgaria).
In the same time, Romania is on 8th place in Europe regarding the taxation of the minimum gross salary, with cca 60%.
Making a ratio, it resulted almost the highest taxation of the minimum gross salary from Europe.
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
31.12.2016: 4.4511
31.01.2017: 4.5006
28.02.2017: 4.5115
31.03.2017: 4.5446
Inflation rate evolution
2011: 5.79 %
2012: 3.33 %
2013: 3.98 %
2014: 1.07 %
2015: – 0.90%
2016: – 0.54%
Jan. 2017 / Jan. 2016: 0.05%
Feb. 2017 / Feb. 2017: 0.20%
Key indicators
– VAT: 19%
– Profit tax: 16%
– Microenterprise tax: 3% / 1%
– Dividend tax: 5%
– Income tax: 16%
– Total salary taxes: cca 60-70% in addition to the negotiated net salary
– Minimum gross salary: 323 EUR
– Tax deductible loan interest rate:
– RON: 1.75%
– EUR: 4%