December 2017, tax and business news
Business news
Minimum gross salary as of 01.01.2018
The Romanian Government recently issued a Decision to increase the minimum gross salary to 1,900 RON, e.g. 413 EUR starting with 01.01.2018.
According to the new taxation structure in place as of same date, the related net salary will be 1,162 RON, e.g. 253 EUR.
New office building in north of Bucharest
The Greek construction company Octagon Engineering has started the works to the foundation of the Ana Tower building project, owned by the Romanian businessman George Copos.
The building will have 24 floors and more than 100 m height. The surface to be rented will be 33,000 sqm.
Tax news
The Government Ordinance regarding the change of structure of salary taxes was approved by the Senate
Last week, the Romanian Senate (one of the two bodies of the Parliament) adopted a draft of Law approving the Government Ordinance moving the salary taxes from the employer to the employees, without modifications.
New Law regarding the punishment of the not-payment of the taxes withheld from employees’ salary or income – draft
The Romanian Government issued a project of Ordinance, to enter in force starting next year, severely punishing the administrators of the companies who intentionally do not pay to the State budgets the withholding taxes retained from the salary or from the income of employees or other physical persons.
According to this draft of Ordinance, the responsible person of a company who withholds the below types of taxes, but intentionally do not to pay them to the State, will be punished with sentence to jail from 1 – 6 years (according to the value of the unpaid taxes, the number of the years could be increased up to 50%):
all the types of salary taxes
dividend tax
tax on intellectual property rights
other taxes, like rent tax, tax on selling a land, etc
The same draft of Ordinance says that the same kind of penalties (2 – 7 years of jail) will be applied for a various range of facts which will be considered tax evasion in case they are done intentionally:
not declaring and booking of taxable assets
not booking of commercial transactions
booking expenses without having supporting documents
destroying of accounting documents or of data storage devices
double bookkeeping
not correctly declaring of the company’s office in such way the Tax Authority could not control the company.
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
31.03.2017: 4.5446
30.06.2017: 4.5503
30.09.2017: 4.5991
30.11.2017: 4.6422
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%
Sep. 2017 / Sep. 2016: 1.77%
Oct. 2017 / Oct. 2016: 2.63%
Key indicators
– VAT: 19%
– Profit tax: 16%
– Microenterprise tax: 3% / 1%
– Dividend tax: 5%
– Total salary taxes: cca 60-70% in addition to the negotiated net salary
– Minimum gross salary: 323 EUR
– Local tax on buildings:
– residential: 0.08% – 0.2%
– business: 2% – 1.3%
– Tax deductible loan interest rate:
– RON: 1.75%
– EUR: 4%