January 2018, tax and business news
Business news
OMV Petrom has a new CEO
OMV Petrom, one of the largest Romanian company, activating in oil industry, has a new CEO.
The Romanian Mariana Gheorghe, who managed the company 12 years (all the period after the privatization of the company), will be replaced till May 2018 by Cristina Verchere, a Scottish who has made a carrier in British Petroleum.
It seems that this move will allow OMV Petrom to have a more international approach and to also participate to some projects involving Russia, to which Mariana Gheorghe constantly opposed.
Bancpost will be taken over by Banca Transilvania
Recently was released the news that Bancpost will be taken over by Transilvania Bank, the only Romanian owned bank, in Q2 2018.
Banca Transilvania is the second largest bank in Romania and has a market share of 13% and assets of 12 bil. EUR.
Inflation rate of 2017
The inflation rate registered in 2017 was of 3.32%, the biggest one since 2013.
Following the same trend, the ex-rate RON/EUR as of 31.12.2017 was of 4.6597 RON/1 EUR, the highest one ever.
But, despite of these, the economic growth rate of Romania in Q3 2017 was of 8.8%, the highest one from EU countries.
The level of the net salary in November 2017
According to the Romanian Statistic Institute, in November 2017 the average net salary at the national level was of 2,464 RON, e.g. cca 530 EUR.
Tax news
Tax statement to be deposited by Romanian tax resident individuals
In January 2018, the Romanian tax resident physical person who obtained last year incomes other than salary over 22,800 RON (cca 4,900 EUR) must deposit at the Tax Authority a statement in order to be identified and pay health insurance and pension insurance, according to the type of the income.
These insurance contributions will be paid no matter the person is also employee (e.g. paying them already for the salary incomes) or not.
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
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:
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