Category Taxation in Romania

Romania Embarks on Massive Tax Overhaul

June 30, 2017 Taxation in Romania

Tax overhaul in RomaniaBUCHAREST – Romania, one of Europes most corrupt countries, is taking steps to claw back tax revenues from businesses continually dodging their tax obligations.

On June 29th the government of Romania announced that it intends to overhaul the national tax system to support economic growth and tax collections.

Currently, businesses in Romania pay a flat-rate corporate tax of 16 percent on profits.

However, under the new proposal businesses would pay a turnover tax, as it is believed that the change would help boost tax collections from businesses which continually report losses.

The tax would be levied at a rate of 1 percent to 3 percent, based on the level of turnovers seen by the business, with the lowest tier applying only to micro-sized operations seeing less than EUR 500 000 per year...

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Romania Launches Extra Tax Probe

August 7, 2015 Taxation in Romania

BUCHAREST – Pop stars and personal money lenders in Romania will soon be subject to intense scrutiny by tax authorities, as greater efforts are made to stamp out tax evasion.

In a statement made on August 6th the head of the National Fiscal Administration Agency Gelu Stefan said that the national tax authority would soon be conducting extra investigations on the tax affairs of hundreds of thousands of individual taxpayers in an effort to catch out rampart tax evaders.

The investigations will be on people who have recently made purchases of items worth more than EUR 70 000 or purchased cars worth in excess of EUR 25 000.

Currently approximately 7 800 individuals have been identified for such checks, and, according to Gelu Stefan, a significant portion of them being celebrities, popstars a...

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Romania Sets Out to Slash Taxes

February 19, 2015 Taxation in Romania

BUCHAREST – Romania hopes to create at least 325 000 new jobs by cutting income taxes, VAT rates, excise duties and dividend taxes.

On February 18th the government proposed an extensive number of tax cuts aimed at boosting economic growth, and fostering job creation, while easing some of the harsh austerity measures implemented over the last four years.

The measures proposed include the reduction in the rate of VAT from 24 percent to a rate of 20 percent on all goods and services, excluding meat, fish, fruits and vegetables, which would see an even lower rate of 9 percent.

The changes would take effect in January next year, with a further 2 percent cut proposed for the following year.

Other proposed changes include the removal of the currently active 1 percent tax on new construction p...

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Romanian Energy Sector Facing New Tax

August 14, 2012 Taxation in Romania

New Tax For Energy Companies in RomaniaBUCHAREST – Power companies in Romania are set to face a new tax on their profits, as the government looks for means to raise tax revenues and provide subsidies to low income households.  

In an interview with the national news agency of Romania AGERPRES on August 15th the deputy Finance Minister of Romania Liviu Voinea announced that a new tax will be levied from 2013 on all energy producers who will see their profits grow after the upcoming deregulation of the national energy industry.

The revenues raised from the tax will be used to fund new programs and welfare systems to assist low income families who will be affected by the expected rise in energy prices following the deregulation. It is planned that the subsidies will be offered to individuals with monthly incomes below EUR 350...

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Romania to Reorganize Tax Administration Systems

April 18, 2012 Taxation in Romania

Tax Administration in RomaniaBUCHAREST – Romania will soon reevaluate its tax administration system, which is currently regarded as having some of the most complex tax environments in the world.

On April 17th the Prime Minister of Romania Mihai Razvan Ungureanu dismissed the head of the National Agency of Fiscal Administration (ANAF), after the department failed to reach its goal of reducing the occurrence of tax evasion in Romania and raising tax revenues by EUR 2 billion by 2012. The Prime Minister also announced that ANAF would undergo a reevaluation of its structure and a reorganization of its operations.

According to the Minister of Finance of Romania Bogdan Dragoi, the optimization of ANAF’s operations will lead to profound changes in the administration of taxes in Romania, with a greater emphasis on electronic ...

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