News – Romania
Check changes in accounting, tax and advisory services.
The Romanian market, underestimated for many years, is now increasingly popular among exporters. If your company already has or is planning to do business in this country, read the table below in which we present the most important changes in the laws in 2020.
| Topic | Commencement of the act | Effects |
| Employment | 01.01.2020 | The minimum gross monthly salary increases by RON 150 to RON 2,230. |
|
Employment
|
01.01.2020 | The overcharging of the part time labor contracts is canceled. Until the end of 2019 the social securities for part time contracts are calculated at a minimum basis equivalent to the minimum gross salary for a full time job. |
| VAT | 01.01.2020 | The EU Directive to regulate the criteria to apply VAT exemption for Intracommunity supplies of goods enters into force in 2020. The Romanian Government is still expected to issue a rule accordingly. The purpose of the Directive is to have consolidated regulations regarding the documents in proof to apply the VAT exemption, thus to reduce the Intra EU VAT fraud. |
| VAT | 01.02.2020 | The VAT split system will be canceled |
| Special taxes | 01.01.2020 | The overcharged Excise duty for fuel is canceled but the regular excise duty for fuel increases. |
| Administrative | 23.07.2019 | Companies are expected to declare their UBO to the trade registrar within 12 months from 23.07.2019. |
|
General comment
|
01.01.2020 | The tax authorities have recently published the strategy to improve the tax collection: designing new criteria to determine the tax risk for each taxpayer, improving the use of digital tools, reducing the administrative burden, SAF-T implementation, actions against companies with a negative capitalization, special attention to transactions between related parties. – still pending
|
|
General comment
|
01.01.2020 | The Parliament postponed the vote over a Law to reduce the VAT to 16%. A new vote is expected within 10 days. |
|
General comment
|
01.01.2020 | The Romanian Government is expected to implement the reporting obligations brought by DAC 6. |
The above data received in cooperation with KRESTON ROMANIA.
