Romanian minimum wage increases on 01/01/2020

In the Official Journal no. 1,010 dated December 16, 2019, Government Decision No. 935/2019 on the Romanian minimum wage was published. Starting on 01/01/2020, the minimum wage is determined as follows: a) The gross minimum wage is 2230 lei, for an average full-time job of 167.333 hours per month, i.e. 13.327 lei / hour. No grants or other benefits are included in this amount. b) For employees whose job description requires a university degree and have at least 1 year of professional experience in this area, the gross minimum wage is 2350 Lei. If you have employees in your company who are paid with the minimum wage, you must create additional agreements to the employment contracts and report them in the electronic system of the employment office (REVISAL). Date: Dec 20, 2019 Source: Official Journal...

Social security contributions Romania from January 2018

Changes to social security contributions from January 2018: The changes provide for the following measures: Reducing social security contributions in three ways Employer taxes are greatly reduced The taxes are mostly shifted to the employee and increased for him From 01/01/2018 there are the following fees: Employer: Employment insurance: 2.25% of the gross salary Exceptions: for special working conditions: 4%, for heavy working conditions 8%. Employees: Pension insurance: 25% of the gross salary Health insurance: 10% of the gross salary Conclusion: by transferring the social security obligation to the AN and by increasing the social security contributions of the AN from the current 16% to 35%, their net income decreases accordingly. By reducing wage tax from 16% to 10% (see also point C: Change in income tax) this is partially offset. In order to enable employees to have a constant net wage, an increase in gross wages would be necessary. Basically, an increase in the gross salary does not mean any significant additional costs for the AG, since on the other hand the AG’s taxes have been reduced. A corresponding gross wage increase has been set by law for state employees. In industries in which employees are exempt from wage tax (IT, research, development, seasonal work, employment for the disabled), the AG can expect a larger increase in gross wages and thus additional total costs of around 7%. According to the government, measures are being taken to compensate for this, but nothing specific has been published to date. If a constant net salary of the MA is desired, we recommend that the AG perform a separate calculation for each...

Taxes Romania from 01.01.2018: 1% tax for an annual turnover of up to 1 million euros

All companies that achieve an annual turnover of less than EUR 1,000,000 will be classified as “micro companies” from 01.01.2018. The previous year’s sales are used as the basis for the sales calculation. Micro companies pay no profit tax (equivalent to German corporate tax) but a tax of 1% of sales if at least one employee is employed or 3% of sales if there are no employees. The condition that a maximum of 20% of sales may be generated from consulting activities in order to be classified as a micro company has been removed. At the same time, this classification also benefits other company activities that were previously excluded: insurers, capital markets, banks, competitions. The option that corporation tax payment (16% of profit) can be selected in the case of share capital of at least RON 45,000 has been abolished. Conclusion: for many companies whose annual turnover is less than EUR 1,000,000, this means an interesting tax cut. For companies with a small profit margin, this type of taxation could have disadvantages, the 16% profit tax would have been more advantageous in such cases. Source: Urgent Ordinance O.U.G no.79 / 2017 (Publication in the Official Journal on November 10,...

VATID Romania

VATID The companies that have a valid Romanian VAT ID number (in Romania are subject to VAT) no longer have to make an entry in the register of intra-Community operators (ROI). The Romanian VAT ID no. is automatically valid in the EU’s intra-Community trade in goods and services. The extremely complex preparation of form 088 for registration as a company subject to VAT is no longer necessary. Source: Tax Office Regulation No. 210 / January 13, 2017 Conclusion: these are particularly good and important changes. They eliminate a lot of red tape and unnecessary expenses. Date: Jan 31,...

Romanian Green Certificates – Values 2016

The new limit values of the GC in 2016 according to the Order no.3/2016 are as following : The minim value is 132,4045 ron (29,3971 eur). The maxim value is 269,7247 (59,8856 eur).
Registration as VAT payers 2015 and necessary documents

Registration as VAT payers 2015 and necessary documents

Registration as VAT payers 2015 and necessary documents The company was founded on the basis of the Law 31/1990 (partnership, limited partnership, corporation, limited liability company) and are registered with the Chamber of Commerce, the application can request as VAT payers, as follows: in founding after the founding when the turnover of the calendar year is less than 220,000 lei (exemption limit) only when the situation has led to the resolution, stop Process of registration as VAT payers When it was founded – must be submitted to the tax office: the form 098 application for registration for value added tax, according to Tax Law Article 153 paragraph (1) letter a) and the Form 088 statement on their own responsibility concerning the review of the intention and capacity to cover the activities. field of VAT. The deadline of this explanation is the same day of submission of the application for registration in Handelsregiter. These forms 098, 088 are filled in electronically in pdf format. They are submitted to the tax office but not online. After the establishment, if sales of a calendar year is less than the exemption limit in the amount of 220,000 lei – The following forms are the tax office issued: the form 010 Statement of tax registration / Declaration of mentions for legal persons, associations and other companies without legal personality, and the form 088 statement on their own responsibility concerning the review of the intention and capacity for activities in the field of VAT. The deadline of these statements on the day of the application for registration. Only if the situation has led to the resolution, stop...
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