From January 1 2018 Romanian Income Tax will be reduced from 16% to 10%. This will bring Romania in line with Bulgaria.
Tag - Romania
Romania currently has an outstanding deficit of uncollected taxes, totaling an estimated 7.7 billion euros. This is approximately 37.2% of all their taxes.
“The uncollected VAT is bigger than the Romanian budget allocation for 2017 for education, infrastructure investments or healthcare,” PwC Central and Eastern Europe, Daniel Anghel.
Further to our posting earlier in the month we can now inform you that the following amendments have been made to the proposed VAT legislation.
Romania is the latest EU member state to employ a VAT split payment system - meaning a major change in administrative requirements for Romanian companies. The split payment implies the use of a bank account dedicated to VAT receipts and payments.
Online retail in Romania posted in 2016 a 38% increase, the highest in Europe and almost double the European increase of 15%, said the Romanian Association of Online Retailers (ARMO), quoting the results of an Ecommerce Europe report.
Changes are to be made to speed up the reimbursement procedure for tax payers whilst maximising the use of tax administration resources – this only applies to reimbursement requests falling after 1st May 2017.
The procedure is as follows:
If registered for VAT purposes the individual can request through a submitted VAT return for the relevant reporting period. If not done at this stage the amount will be carried forward.'...'
Noting a substantial drop in the tax burden in Romania, the International Monetary Fund (IMF) has called on lawmakers to avoid further tax cuts.
Further to the news we posted last month that Form 088 will no longer be required in Romania from the 1st of February 2017, we have more details about the new VAT registration procedure to share.
Law no. 227/2015 regarding the Fiscal Code has been amended by the Government Emergency Ordinance no. 84/2016. Measures have been implemented that affect...
We can confirm that the standard VAT rate was reduced from 20% to 19% from the 1st of January 2017 despite previous reports that the Romanian VAT rate may not be lowered...
page 1 of 4 - Next Page »