Tax incentives for business angels


Individuals who invest in micro-enterprises in Romania will benefit from a number of tax exemptions starting with July this year. These investors, also known as business angels, will be able to benefit from tax incentives after acquiring shares in Romanian companies through investments in small and micro enterprises. Our Romanian accountants can give you details about tax incentives, if you want to invest in Romania.

Registering for VAT purposes


Companies that want to register for VAT purposes in Romania must complete Form 088 to justify the intent and ability to carry out economic activities. Although there are no instructions for filling the form, there are some issues companies should pay attention to when preparing the documentation for obtaining the VAT code. Our accounting firm in Romania can help you prepare any documents and obtain the VAT number.

Changes for the mandatory reporting of financial transactions


The New Code of Fiscal Procedure has been adopted by the Senate and, according to the latest changes in the document, lawyers in Romania and banks will not have to report information about their clients to the Romanian National Agency for Fiscal Administration (NAFA). Certain legal provisions have been reformulated so that lawyers, notaries, accountants in Romania, tax consultants and banks will no longer have to report the transactions to their customers, as it would have been the case if the document would have been adopted in its earlier version.

The new reduced VAT rate for food to be applied starting June


The Value Added Tax in Romania will be reduced starting 1 June for all foodstuffs. The measure is part of a bill amending the Tax Code and was published in the Official Gazette. The reduction will apply without distinction, even for soft drinks and food services. This measure targets the suppliers of goods and services in Romania. Our accountants in Bucharest are ready to offer you any additional information about how this change may influence your business.

Romanian companies maintain a positive outlook on the future


Romanian companies are more optimistic about the future, compared to foreign companies in Romania, as revealed by a new study performed by EY Romania. The business morale is reflected in the previsions made by business owners regarding the turnover growth, potential investments and the growth forecast. The predictions were also positive for employment in 2015.

Rules for single entry accounting


The rules for single entry accounting have been changed starting March 2014 and taxpayers must observe some essential rules. The new requirements are not substantially different from the previous ones and, to some extent, they even simplify the process for some taxpayers.

Stimulating economic activity will depend on the implementation of the tax changes


The plan the Government announced concerning fiscal changes is definitely a move in the right direction. Experience has shown that the way to increase state revenues through taxes is to increase the tax base.

Changes for micro-enterprises


The new Fiscal Code could bring changes for the indexation of wages and the indexation on the income produced by micro-enterprises. Also, the personal deduction from the net monthly income will be increased for employees who earn salaries above a certain amount. The new Code must be approved by the Romanian government and then be sent to the Parliament for debate.

The stamp tax in 2015


The stamp tax for the compulsory execution application maintains a fixed value this year. However, for appeals rates may vary depending on the amount of debts or the type of assets. Natural and legal persons in Romania must pay the legal stamp taxes for actions and requests submitted to any Romanian court and also for application made to the Ministry of Justice. The stamp duty is thus the payment for the legal services performed by courts, the Ministry of Justice and the Prosecutor’s office attached to the High Court of Cassation and Justice.

The productivity of the Romanian workforce has improved

Last year, the productivity of the Romanian workforce grew by 4% to 1.3. This indicator measures the gross income generated by each employee for each unit of currency (euro, dollar or lei) paid by the employer as compensation. At a European level, the Romanian workforce is 16% more productive than the European average (which has an average of 1.12) and also when compared to the average recorded in Central and Eastern Europe (1.28). This illustrates a previously acknowledged fact, well known even by foreign investors - the Romanian workforce is highly qualified and productive.

How the reduced VAT rate in tourism will be applied


Foreign business owners who want to invest in tourism in Romania will benefit from a reduced VAT rate for a number of new services. The Romanian government has recently approved a decision for the modification of the methodological norms of the Fiscal Code in order to make this change in the VAT rate for tourism companies. This measure is likely to encourage business owners to invest more in tourism and open new facilities and resorts in Romania's most beautiful and attractive touristic destinations.

New rules for VAT registration


A new procedure for the VAT registration will enter into force starting with February 1. The reason for registration will be stated by completing form 088 which will soon be available. The new regulations issued by the National Agency for Fiscal Administration apply for three distinct situations that require the tax payer to register for VAT purposes. Our accountants in Romania can help you with information about the rules for filling the form as well as additional information.

Romania: one of the leaders in real estate transactions in Central and Eastern Europe


The total value of real estate transactions in Central and Eastern Europe decreased by 13% last year to 9.8 billion euros. However, investors in Romania did not experience any fall in business activities since Romania remained one of the countries that managed to record impressive investments in the real estate field, being the fourth most popular destination for real estate investments after Poland, Russia and the Czech Republic. 

Positive predictions for employment in 2015


Many Romanian employers believe they will continue to make new employments during the first months of 2015. Employers have predicted positive growths in employment during the last four years and have continuously declared every quarter that the employment rate will grow during the next quarter. The number of jobs in Romania has grown from one quarter to another and employees looking for a new workplace can remain optimistic during the first months of 2015.

Regular verification for high-risk VAT payers


The National Agency for Fiscal Administration will check the registration criteria for all taxable individuals who require re-registration for VAT purposes, after they have had their registration cancelled. Also, the agency will regularly assess some categories of taxable individuals who are considered high-risk VAT payers.

New work notice needed for hiring employees


Employers need a new special work notice in order to be allowed to hire certain types of employees. In order to obtain the document, employers must pay the equivalent in lei of 200 euros. Business owners who do not observe the regulation could be fined with an amount between 1,000 and 3,000 lei. The Government Ordinance no. 25/2014 regarding the employment and secondment of foreigners in Romania and regarding the amendment and supplementing of certain normative documents for the applicable regime for foreigners in Romania was already published in the Official Gazette and it entered into force.

Romania avoided entering into technical recession


Romania’s economy grew by 1.9% in the third quarter of 2014, compared to the second quarter, and by 2.8% in the first nine months, with 0.4% higher than the annual advance recorded in June this year. The revised data issued by the Romanian National Institute of Statistics indicates that the country avoided entering into technical recession. The data is encouraging for foreign investors in Romania and the economic outlook remains positive.

Fiscal provisions for business protocol expenses


Almost every company in Romania, regardless of its size, will invest in protocol expenses for various occasions. These expenses include corporate gifts, business lunches or dinners and other expenses incurred for the purpose of strengthening business relations. Our accountants in Bucharest can tell you all about the fiscal provisions for these expenses. 

Higher taxes for insolvency practitioners in Romania


The National Association of Insolvency Practitioners in Romania announced that the prices paid by insolvency practitioners who want to obtain certain documents will increase starting November 2014. New provisions were also made regarding new taxes and the conditions in which insolvency practitioners are allowed to do business and work based on collaboration agreements.

Incentives for entrepreneurs in Romania


The Romanian state offers several programs to entrepreneurs who want to develop their businesses in Romania or who need to reduce the costs that come with hiring employees in Romania. The programs are diverse and range from several amounts destined for investments in certain fields to various tax exemptions. They are available for small and medium sized businesses which comply with the eligibility criteria.

Predictions for Romania’s economic growth


Romania’s government plans to register a medium term economic growth of 5 - 6% per year. The target will be fulfilled by maintaining fiscal discipline in order to reach other European countries and recuperate the existing shortcomings. The country’s economic growth will be encouraged through a set of measures that aim to sustain the business environment in Romania.

New rules for the fiscal administration of secondary offices


Medium sized taxpayers who own secondary offices need to observe new rules regarding the administration of these headquarters, after an order of the Romanian National Agency for Fiscal Administration changed the previous regulations for administration.

The excise tax will most likely decrease in 2015


The Romanian Prime Minister declared that the excise tax for 2015 will certainly be lower and mentioned that the way this tax is calculated is set according to the Ministry of Finance, along with international partners.

Fiscal obligations for individual taxpayers


The Romanian National Agency for Fiscal Administration (NAFA) recently published a fiscal guide for taxpayers who derive income form independent professional services in Romania. This regulates the fiscal obligations for self-employed individuals who perform professional services, either individually or in a form of association.

Social security contributions reduced by 5%


Romanian authorities reduced the social security contributions by 5% according to a law passed earlier in September. This measure will encourage the creation of new workplaces and it will encourage foreign investors to open companies in the private sector. This change will have a significant impact starting with 2015.