The Chamber of Deputies approved the legislative project that will introduce a new type of flat tax starting with 2017. This type of tax will apply only to certain types of businesses, including those companies that operate in tourism and/or accommodation, restaurants and bars. Our Romanian accountants can give you more information about this tax, including how it will influence the current applicable reporting requirements.
The 1st of November 2017 is the deadline for companies to change old cash registers with registers with electronic journals. For this purpose, the Ministry for Public Finances has recently published a guideline for companies required to replace old cash registers. The guideline establishes the method through which electronic cash registers must be enrolled with the National Registry of Cash Registers which will be enabled by the National Agency for Fiscal Administration.
Small and medium-sized enterprises (SMEs) in the urban and rural areas will be eligible to apply for financial aid offered by the European Funds Ministry (EFM). SMEs could benefit from amounts starting with 200,000 euros and up to 1 million euros provided that these companies carry out non-agricultural activities. Our Romanian accountants can provide information about governmental grants for SMEs.
The National Agency for Fiscal Administration (ANAF) announced that starting this fall companies and individuals will be able to pay their taxes and other contributions online. According to the minister for public finances, ANAF has started to work on the enrollment procedures on the online platform. Our Romanian accountants can offer detailed information on the tax system in this country.
Social contribution quotas could go down if a recent bill passed by the Senate will also be voted favorably by the Chamber of Deputies. The new Fiscal Code could be amended so that these contributions decrease by 5%. Our Romanian accountants can offer information on the current contributions employers must pay.
In Romania, the standard corporate tax is 16%, applicable to both Romanian businesses and to foreign enterprises functioning through a permanent establishment in the country. In case of the Romanian corporation registered as a subsidiary of a foreign company profits may be send home solely by way of dividend circulation, which, according to domestic law, is permitted only after the annual monetary reports are accepted by the stockholders.
The new Tax Code in Romania carries, along with its implementation on the 1st of January 2016, adjustments regarding the fiscal regime applicable to listed sole traders and to small businesses, raising questions about the selection of the best method to make the activities, from the fiscal viewpoint.
At the end of May, a new law which provides for several fiscal facilities for companies setting up business incubators was passed. Our Romanian accountants can provide you with more information about the conditions under which a company can set up a business incubator in this country.
The new Fiscal Code brings certain changes to the local taxes payable by individuals who own residential or non-residential buildings. This local building tax is calculated according to the scope for which the building is used. Foreign investors in Romania who own property and lease it can request the services of our Romanian accountants for tax assistance.
The rules for the enforcement of the provisions of the new Fiscal Code have been amended for the second time. These new provisions will be entered into force as soon as the document adopted by the Government will be published in the Official Gazette. Our Romanian accountants can highlight the most important implementing rules and can help you adjust to these changes.
From the 1st of January 2016, Romania has introduced a new Tax Code, in which are specified important changes to excises and several taxes, such as: corporate income tax, value added tax, personal income tax, social contributions and local taxes. The new legislation has the purpose of simplifying the process of tax collection, decreasing taxes paid by both individuals and companies, and stimulating economic growth; our team of Romanian accountants can offer you an insight of the main effects of the tax modifications.
Since the beginning of 2016, the standard VAT (value added tax) in Romania is applicable at a rate of 20%, as an effect of the new Romanian Fiscal Code. Until the end of 2015, the standard VAT applicable to both companies and individuals was established at a rate of 24%. According to the new Fiscal Code, the VAT will be further reduced from the 1st of January 2017, from 20% to 19%; our Romanian accountants can offer you a detailed presentation on the new VAT.
Nonresident legal entities in Romania will need to fill in Form 101 for the profit tax and submit it to the National Agency for Fiscal Administration. The change is in line with the latest modifications from the new Fiscal Code regarding the manner in which nonresidents can request the regularization of the withholding tax. If you are a foreigner deriving income from a Romania source our Romanian accountants can help you with tax compliance.
The laws governing the registration procedure for VAT purposes have changed at the beginning of the year when an Order from the National Agency for Fiscal Administration entered into force. As a result, starting with this year the registration process is more complex but with the help of our accountants in Bucharest you can register your company and comply with all the current requirements.
The new Fiscal Code includes significant changes for micro enterprises. The new changes will apply starting with January 1, 2016. Starting with this date, the limit at which an individual who wants to register as a micro enterprise will increase to 100,000 euros. Also, this type of company will have a differentiated tax rate system. Our team of Romanian accountants can help you prepare your micro enterprise for these tax changes.
One of the most important changes in the new Fiscal Code is a reduced value added tax rate from 24% to 20%. Business owners will need to prepare for this change and comply with the new requirements in order to avoid any risks that might become associated with failing to perform the transition in time. Our Romanian accountants can help you understand the implications of this new measure on your business activities.
The Romanian Fiscal Code suffered successive changes over the past months and the additional legislation hasn’t been clarified through secondary laws. These yet unclear regulations have made it possible for some taxpayers to face additional taxes. Our accountants in Bucharest can help you with specialized consulting services so that you can clarify any questions regarding the new Code.
The National Agency for Fiscal Administration (NAFA) in Romania has implemented a new set of measures concerning the liability of taxpayers in the country. According to the new rules, those who were removed from the fiscal record can still be held liable for any violations of the tax law. Our Romanian accountants can tell you more about how these new rules apply and how you can observe the fiscal rules.
Taxpayers who need to verify their current tax situation can use an online service that allows them to find out what are their due taxes. This online verification was implemented by the National Agency for Fiscal Administration at the end of 2014 and it is a quick and easy option for taxpayers to be up to date with their fiscal obligations in Romania. The experts at our Bucharest accounting firm can help you observe the current tax regulations in the country.
Companies must prepare their consolidated financial statements until August 31st this year. These statements include, among others, the consolidated balance sheet, the consolidated profit and loss account and the notes adherent to these documents. Legal entities that do not comply with the filing regulations risk penalties of up to 30,000 lei. Our Romanian accountants can give you detailed information about how to prepare these documents.
Legal entities and sole traders registered in Romania will be identified using an additional number, apart from that assigned when registering with the Romanian Trade Register. The new identifier will be used at a European level and it will apply starting with 2017. Our Romanian accountants can give you additional information about the requirements for registering a company and complying with tax regulations in Romania.
A new judgment issued by the Romanian Constitutional Court established that it is unconstitutional for an employer in Romania to suspend the employment contract of the employee when formulating a criminal complaint against that said employee. Although the judges believe that the measure was intended to protect the interests of the company, the decision is final and will be published in the Official Gazette. Our accountants in Bucharest can give you detailed information about the legal termination of employment contracts in Romania.