March 2017, tax and business news
Business news
European Commission’s concerns about Romania’s economy
Last month the European Commission sent a letter to the Romanian Finance Ministry expressing its concern regarding the inflation and budget deficit for 2017, in view of recent tax changes and salary increases in the State sector.
In line with all the formal statements made by the political leaders on this subject, the Romanian Finance Ministry answered that the assumed targets would be respected despite the recent financial evolutions.
But, some economic journalists presented few alarming indicators, among them a serious decrease of VAT cashing, comparing to last year, which cannot explained only by the decreasing of the quota from 24% to 20%.
Tax news
New tax registration requirements for non-resident persons
Starting 2017 a new informative tax statement was introduced: “Informative statement regarding the retained tax and exempted incomes from/of non-resident physical persons”, code 207. The deadline for depositing it is 28th of February for previous year.
The Romanian companies paying dividends, interest, royalties, commissions and services provided on Romania’s territory to non-resident physical persons must pay and declare the retaining tax taken from the gross incomes. The tax exempted incomes must be declared as well.
The most usual situations are:
– shareholders of Romanian companies receiving dividends, or interest for the loans granted;
– non-resident physical persons receiving commissions or fees for services provided on Romania’s territory.
The issue here is the fact this statement must declare the tax/exempted income individually, for each person, and requires to input the Romanian Tax Identification Number (TIN).
Consequently, every person in this situation will have to apply for and obtain such number.
The procedure is not very clear in this moment, but it seems that the application file is to be prepared and deposited by the Romanian company paying the income and retaining the tax.
The main important piece of the file is the document showing the relation of the non-resident person with the Romanian company and which proofs the necessity of obtaining the Romanian TIN:
– Trade Registry excerpt showing the fact the non-resident individual is shareholder of the Romanian company;
– The above one plus a copy of the loan agreement in the case of interest incomes etc.
Macroeconomic indicators
RON / EUR ex-rate evolution
31.12.2011: 4.3197
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
Inflation rate evolution
2011: 5.79 %
2012: 3.33 %
2013: 3.98 %
2014: 1.07 %
2015: – 0.90%
2016: – 0.54%
Jan. 2017 / Jan. 2016: 0.05%
Key indicators
– VAT: 19%
– Profit tax: 16%
– Microenterprise tax: 3%
– Dividend tax: 5%
– Income tax: 16%
– Total salary taxes: cca 60-70% in addition to the negotiated net salary
– Minimum gross salary: 322 EUR
– Tax deductible loan interest rate:
– RON: 1.75%
– EUR: 4%