August 2017, tax and business news
August 2017, taxes and business news
Business news
Major change of the Work Code
The Goverment recently issued an Ordinance to modify the Work Code in order to discourage the work without contract:
– All the companies must keep at the head office a copy of the work contract of all employees and of the daily record of the presence, clearly stating the daily starting and finishing work hours of each employee;
– The companies not declaring the work contracts at the Work Chamber one day before starting day or having employees working full time although they have part time contracts will be considered as having “notdeclared”
workers.
The activity of the companies having even one “not-declared” worker can be stopped immediately by the Work Chamber inspectors, in addition to enforcing increased penalties.
Tax news
New tax rules – salary taxes for part time work contracts According to a newly issued Government Ordinance, as 1st of August 2017 the companies pay for the part time employees the employer social insurance (CAS) and health insurance at least at the value to be paid for the full time minimum gross salary (1,450RON).
The minimum amount for CAS and CASS will be 304 RON.
New tax rules – “split VAT”
The Romanian Finance Ministry issued a draft of Ordinance regarding a major change of the VAT system, the so called ”split VAT” payment procedure:
– All the VAT payer companies will be obliged to open a new bank account;
– Any invoice issued by the VAT payer suppliers will be paid separately, the value of the service or good into the old account of the supplier, and the VAT in the newly opened VAT account of the supplier;
– Any invoice issued to the clients will be paid in the same way by them;
– The bank account for VAT will be used only for paying the VAT of the purchasing invoices or to pay the VAT to the State Budget;
– The companies will not be allowed to take money from this VAT account without special permission of the Tax Authority.
There are big penalties intended to be introduced:
– The payment of the VAT into another account of the supplier than the VAT account, although the supplier communicated it correctly: 50% of the VAT wrongly paid;
– Not-opening the VAT account: 2,000 – 4,000 RON;
– The money received in cash must be deposited into bank accounts according to “split VAT” procedure too: 10% of the VAT not deposited into VAT account.
This system is intended to be introduced as of 01.10.2017.
Macroeconomic indicators
RON / EUR ex-rate evolution
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
30.04.2017: 4.5289
31.05.2017: 4.5636
30.06.2017: 4.5503
31.07.2017: 4.5558
Inflation rate evolution
2012: 3.33 %
2013: 3.98 %
2014: 1.07 %
2015: – 0.90%
2016: – 0.54%
Mar. 2017 / Mar. 2016: 0.18%
Jun. 2017 / Jun 2016: 0.85%
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%