October 2017, tax and business news
Business news
Standard&Poor’s confirmed the rating of Romanian public debt
The financial evaluation agency Standard&Poor’s confirmed yesterday the ratings for the short and long term debts of Romania expressed in hard currency and RON as being “BBB minus”, with a stable perspective.
The opinion of the agency is that the general Government’s debt and the external one will probably increase, but only gradually, within the next two years.
The rating “BBB minus” is of “investment grade” type (recommended for investments).
Tax news
New VAT registration rule
The Romanian Finance Ministry issued an Order changing the way the Romanian Tax Authority will analyze the request of a company to become VAT payer by option.
The new procedure is in place starting 03.10.2017.
The Order presents 15 indicators which generates fiscal risk for a company intending to become VAT payer:
– the company has the head office at a lawyer address,
– the shareholders/administrators have been previously shareholders/administrators of companies in insolvency,
bankruptcy or inactivity without reactivation, or which registered unpaid tax duties etc.,
– the shareholders/administrators have fiscal record,
– the administrators who are individuals did not have incomes in the past year,
– at least one administrator is foreigner and the share capital of the company is below 45,000 RON,
– the company does not have at least one bank account,
– the company does not have declared activity at the head office address or at the working point address,
– the company does not have employees,
– the company does not have an accountant or a contract with an accounting company.
The Order also refers to the companies which are already VAT payer.
They could lose the VAT code if the below indicators are met:
– the company has the head office at a lawyer address,
– the company does not have employees,
– the company does not have an accountant or a contract with an accounting company,
– at least one of the administrators is foreigner and the share capital of the company is below 45,000 RON,
– the tax statements are often wrongly drawn and do not correspond with the tax statements deposited by the
business partners.
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
31.07.2017: 4.5558
31.08.2017: 4.5943
30.09.2017: 4.5991
Inflation rate evolution
2012: 3.33 %
2013: 3.98 %
2014: 1.07 %
2015: – 0.90%
2016: – 0.54%
Mar. 2017 / Mar. 2016: 0.18%
Jun. 2017 / Jun. 2016: 0.85%
Aug. 2017 / Aug. 2016: 1.15%
Key indicators
– VAT: 19%
– Profit tax: 16%
– Microenterprise tax: 3% / 1%
– Dividend tax: 5%
– Total salary taxes: cca 60-70% in
addition to the negotiated net salary
– Minimum gross salary: 323 EUR
– Local tax on buildings:
– residential: 0.08% – 0.2%
– business: 2% – 1.3%
– Tax deductible loan interest rate:
– RON: 1.75%
– EUR: 4%