February 2018, tax and business news
Business news
Economic growth of Romania in 2017
According to Eurostat and Romanian Statistic Institute, the economic growth rate of Romania in 2017 was of 7%, the highest one from EU countries (almost triple than the EU average rate).
Salaries’ evolution in 2017
In 2017, the average net salary was of 2,629 RON (cca 570 EUR). Comparing with the 2016 average net salary, the increase was of 11.7%.
Same time, the increase of the same average net salary in the public sector (State companies or institutions) was almost double, of over 24% comparing with 2016 indicator.
Tax news
The local tax for the buildings owned by companies The companies owning buildings as of 31.12.2017 must pay in 2018 the local tax for the whole year, even if the building would be sold during this year. The tax is set by the local council of every city and must be paid in two tranches (till 31.03.2018 and 30.09.2018) or in advance for whole year.
In case of the buildings owned by companies, the local tax is calculated as follows:
the local tax for residential buildings (the ones used to be rented for living or which are built to be sold as residence) is calculated by multiplying the tax value of the building with a quota between 0.08% and 0.2%;
the local tax for non-residential buildings is calculated by multiplying the tax value of the building with a quota between 0.2% and 1.3%;
the local tax for the building with mixed destination is calculated by adding the local tax for the surface used for living with the local tax for the surface used for business activity. The taxable value of the has to be updated at least once every three years, on the basis an evaluation report drawn by an authorized valuator according to the valuation standards in place at the date of the valuation, deposited at the local tax authority till the first payment deadline of the reference year. In case the owner have not updated the taxable value of the building in the previous last three years, the tax quota is 5%. As a consequence, the companies which made the last valuation of the buildings before 31.12.2014 can avoid the increase of the local tax quota to 5% by performing a valuation till 31.03.2018.
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
31.12.2017: 4.6597
31.01.2018: 4.6474
Inflation rate evolution
2012: 3.33 %
2013: 3.98 %
2014: 1.07 %
2015: – 0.90%
2016: – 0.54%
2017: 3.32%
Jan. 2018 / Jan 2017: 4.32%
Key indicators
– VAT: 19%
– Profit tax: 16%
– Microenterprise tax: 3% / 1%
– Dividend tax: 5%
– Total salary taxes: cca 50% in addition to the negotiated net salary
– Minimum gross salary: 1,900 RON (e.g. cca 408 EUR)
– Local tax on buildings:
– residential: 0.08% – 0.2%
– business: 2% – 1.3%
– Tax deductible loan interest: 200,000 EUR + 10% of the gross profit