July 2017, tax and business news
Business news
Romania has a new Government
After few weeks of political fights inside the Goverment party PSD (Social Democrat Party), the Prime Minister Grindeanu was replaced by Mr Mihai Tudose, the former Ministry of Economy.
The big majority of ministries kept their seated.
Tax news
New tax rules proposed by the new Government Last week the Romanian new Government presented in Parliament the Governing Program, which includes some measures which are already extremely criticized:
Tax on incomes for all Romanian companies According to this Governing Program, starting 2018, all the Romanian companies should pay an income tax of 1% to 3%, instead of the profit tax.
After the big wave of critics raised by this intention, it was already denied by the Prime Minister, and it is not clear if it will be applied or not yet.
Solidarity tax
The employees having a gross salary exceeding 10 minimum gross salaries (e.g. 14,500 RON, e.g. 3,200 EUR) would pay a solidarity additional tax to be applied to the value exceeding 14,500 RON.
The percentage value of this tax was not communicated yet.
Employees working without work contract. The Work Chamber inspectors will have the right to shut down the activity of a company which uses the employees without signing work contracts.
Minimum wage
The minimum gross wage for 2018 would be 2,000 RON (cca 450 EUR), 2,200 RON in 2019 (cca 490 EUR) and 2,400 RON in 2020 (cca 530 EUR). The employees having University degree should receive a minimum gross salary 20% higher.
On the other hand, Liviu Dragnea, the chief of PSD communicated that these figures communicated by the Prime Minister are wrong (!) and the correct ones are 1,550RON, 1,650 RON and 1,750 RON, so in this moment it is not clear which will be the evolution of the minimum gross salary of the next years, although PSD overwhelmingly won the recent elections and has a comfortable Parliament majority.
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
Inflation rate evolution
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%
Mar. 2017 / Mar. 2016: 0.18%
Apr. 2017 / Apr. 2016: 0.61%
May 2017 / May 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%