March 2018, tax and business news
Business news
Romanian and foreign investors: 5 major problems for doing business in Romania
The “Coalition for the Development of Romania”, an organization composed from representative of significant Romanian and foreign investors, having as members, among others, AMCHAM (US-RO Chamber of Commerce), AHK (DE-RO Chamber of Commerce and Industry), CCIFER (FR-RO Chamber of Commerce), Council of Foreign Investors etc, recently had a meeting with representatives of the Romanian Government asking it to find solutions to the main important problems which affect the Romanian business environment:
the lack of work force, especially the qualified one, as a consequence of the emigration and of the poor educational system
the lack of predictability of the law system, of the transparency and of the dialog between legislators and the business environment
the suffocating bureaucracy, coming mainly for the lack of digitalization of the public institutions, and especially of the Tax Authority
the bad image of Romanian outside the country, which affect the exports, the foreign investments and the tourism
the big increase of the salaries in the State sector, which force the private sector to increase the salaries as well, without having a correspondence in the work productivity.
Romanian National Bank refused to agree the purchase of the Banca Romaneasca bank by the Hungarian bank OTP bank
This week the Romanian National Bank officially announced that it opposes to the purchase of the Greek owned Banca Romaneasca bank by the Hungarian owned bank OTP bank. The reasons have not been disclosed.
Distance sales increase in Romania
As an example of a the strong increase tendency of the distance sales market, the Czech online store Bonami, selling furniture and home appliances recently announced a 27 mil EUR turnover in 2017. More than 10% of it was registered in Romania, immediately after entering on the Romanian market.
Tax news
The sole tax statement for Romanian physical persons
The Government issued a decision by which the Romanian tax residents will have to deposit in the future only one tax statement instead of seven. Also, the income tax will be paid according to an estimate revenue, till 31st of March of the tax year, for incomes like dividends, rent, etc.
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
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%
Feb. 2018 / Feb. 2018: 4.72%
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