September 2017, tax and business news
September 2017, taxes and business news
Business news
IKEA will open second store in Bucharest
IKEA will open a new store in Bucharest by the end of 2018, on bd. Theodor Pallady area. The constructor will be Bog’Art, and the investment value will reach 80 Mil. EUR.
The Comarnic – Brasov highway will be constructed under the supervision of EBRD
The Prime Minister recently announced the intention of the Government to grant the supervision and technical management of the construction of the Comarnic – Brasov highway to EBRD, recognizing in this way the incapacity of the Transport Ministry to implement it.
This highway would link the south of Romania with Transylvania, and has more than 20 years since it is intended to be realized by the Romanian authorities.
Tax news
New tax rules – “split VAT”
The Romanian Finance Ministry issued the Ordinance regarding the ”split VAT” payment procedure (please also see the August Newsletter).
This system will be applied optionally as of 01.10.2017 and compulsory as of 01.01.2018.
New tax rules – salary taxes for part time work contracts
As of 1st of August 2017 the companies pay for the part time employees the employer social insurance (CAS) and health insurance at least at the value to be paid for the full time minimum gross salary (1,450 RON).
The Government issued an Ordinance explaining the way this new rule will be applied: the employees having more than one part time contracts will add the salaries and compare the total with the minimum gross salary (MGS):
– the employees having the total salary exceeding the MGS will not generate for the company additional salary taxes,
– the employees having the salary below MGS will generate for the company additional salary taxes, calculated at MGS
In order to enable the companies to determine whether an employee generates or not additional salary taxes, the ordinance introduced a draft of solemn statement which will have to be filled each month by the employees having part time contracts and whose total salaries exceed MGS.
In case the total salaries do not exceed MGS the statement is not compulsory, and the employee will generate additional salary taxes.
The statement is to be deposited till 5th of each month for the previous month salaries.
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
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%
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%
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