June 2018, tax and business news
Business news
Salary evolution
According to the Romanian Statistic Institute, in April 2018 the biggest salaries have been paid to the employees working in the IT and insurance sectors (net salary of cca 1,150 EUR).
In the same month, the average gross salary was cca 970 EUR.
Tax news
Shareholders of the Romanian companies will be allowed to take dividends in advance
The Parliament approved a Law to modify the Company Law and the Bookkeeping Law, which needs now only the signature of the President in order to enter on force.
This Law allows the companies to distribute dividends each trimester, not only after closing the financial year, like in present.
The quarterly distribution of dividends will be in the limit of the net bookkeeping profit realized each trimester. In case the yearly calculus of the profit will determine a profit less than the dividends already distributed, the shareholders will have to reimburse the difference within 60 calendar days after approval the financial statements.
Forecasted change in Intra Community transactions legislation
The European Commission just launched a proposal to change the actual system of taxing the Intra Community transactions with goods. The new system is proposed to be implemented in 2021 – 2022 and is intended to eliminate the VAT fraud.
Currently, the goods sold to a company from another EU country generate VAT collected and also deductible, the result being zero, no VAT to be paid effectively.
The new system says that, for instance, in case a German company sells good to a Romanian company, it has to issue the invoice by adding the Romanian VAT quota. The German supplier will collect the VAT, will declare it and pay it to the German Tax Authority, which will transfer if afterward to the Romanian State Budget.
The major impact will be on the cash flow of the companies, as currently the VAT is not actually paid in such cases.
According to some financial analysts, the Romanian Tax Authority will not be able to implement this system, as its IT system is obsolete. Being part of EU and obliged to manage the VAT cashing for 27 countries, the Romanian Tax Authority will have to modernize urgently in order to be able to fulfil this task.
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
28.02.2018: 4.6564
31.03.2018: 4.6569
30.04.2018: 4.6618
31.05.2018: 4.6485
Inflation rate evolution
2012: 3.33 %
2013: 3.98 %
2014: 1.07 %
2015: – 0.90%
2016: – 0.54%
2017: 3.32%
Mar. 2018 / Mar. 2017: 4.95%
Apr. 2018 / Apr. 2017: 5.22%
May 2018 / May 2017: 5.41%
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