- New Financial Aid from the State
- Innovative Law on Health Insurance
- Fiscal Risk is Determined by the Commercial Activity
- Commercial Content Regulation
- Inflation Rate to be Reduced
- Less Bureaucracy in Dealing with Public Institution
- FDI increased by 20% in 2022
- National Program INVESTALIM
- New VAT reduced for more goods
- Official analytics
- Nexia ABS
1. New Financial Aid from the State
A new financial support initiative will soon be launched by the State, dedicated to the construction materials sector. Through this project CONSTRUCTPLUS, the Ministry of Economy, Entrepreneurship, and Tourism (MEAT) allocates 150 million Euros during 4 years.
The objective of this funding is to reduce the trade deficit caused by material imports, as well as to stimulate investments in less developed regions and support the growth of domestic production.
2. Innovative Law on Health Insurance
Starting from July 1st, 2023, a new innovative law regulating health insurance comes into effect.
Every year, insured individuals within the healthcare system have the right to medical services for treatment and recovery. These services are provided based on a diagnosis and include access to sanatoriums and spa resorts.
3. Fiscal Risk is Determined by the Commercial Activity
One of the best indicators of financial performance is the financial behavior of a company, and the National Administration of Public Finances (ANAF) monitors the financial situation of companies to identify the risk category in which they fall. When the reasons are well-founded and a natural evolution of the indicators is observed, the companies are given support from the authorities.
4. Commercial Content Regulation
Finance Ministry is monitoring the commercial content in order to limit and eliminate any format which can be misleading or fraudulent. To promote a product or service with “ the best price” or as “the best product” will need to be proved comparing with the competitors. Penalties of up to RON 60000 can be applied.
5. Inflation Rate to be Reduced
A new Government team is in place in Romania since June 2023 with the main focus to decrease the inflation rate up to 8% until the end of 2023. NBR hss even a more ambitious target to 7%. The maximum was 16,4% reached at the end of 2022 and now is at 10,64%. Further measures are implemented and monitored to cap the prices for essential products and utilities plus steadily decrease the commercial trade markup.
6. Less Bureaucracy in Dealing with Public Institution
Starting with the 4th of July is effective a new regulation meant to reduce the bureaucracy in relation with any procedures involving Public Institution in Romania. There was a period of 180 days to prepare online forms and files to accept ID e-copy and to avoid delays or redundant information. Any requested copies for documents should be assured by the institution.
7. FDI increased by 20% in 2022
Final figures regarding the foreign direct investments in Romania for 2022 shows an increase of about 20% comparing with the previous year mainly due to reinvested local profit and less from greenfield investments. Commercial diplomacy is the key to solve many issues and add value for Romanian products.
8. National Program INVESTALIM
Amount of EUR 600 million is allocated for a food program planned between 2023 and 2026. INVESTALIM aims to develop and modernize the businesses in the food industry. Each proposal should be of a minimum of EUR 500,000 without VAT.
9. New VAT reduced for more goods
The Government has just expanded the list of goods with a reduced VAT quota from 19 to only 5%. This is applied now to wood pellets or briquettes used for heating. It is an excellent support for upcoming necessities, just in time prepared for Q4. A similar measure is being debated regarding the commercial activities of sport clubs in order to stimulate investments in this field.
10. Official analytics
The National Institute of Statistics, as a Romanian Government Agency, provided recent analytics regarding salary evolution versus cost of living. The data shows higher costs compared with small income increases. Average monthly household income is estimated at RON 7000, per person is about RON 2800 or equivalent in EUR of 570.
Over 85% of the income is cost, of which 62% representing consume.
11. Nexia ABS
Nexia ABS Financial Services is a tax and accounting consulting company that offers integrated and customized services for its clients in various fields of activity. The company is formed by a team of experienced and specialized professionals who focus on the individual needs of each client and offer solutions tailored to their specific needs.
Nexia ABS Financial Services offers accounting, taxation, payroll, reporting services for all categories of companies active in different fields of activity such as construction, real estate, energy, production and trade. Our extensive experience is gained from partnerships concluded with large companies from Türkiye, but also with European and international partners.
Moreover, Nexia ABS Financial Services is part of the global Nexia International network, which provides access to an extensive network of international experts and resources. This allows its clients to benefit from local and international expertise as well as a better understanding of global markets.
Our team of experts at Nexia ABS Financial Services are at your disposal and can offer you personalized services for your business needs. We are proud to acknowledge that we are the architects of the figures for strategic investors in Romania.
Contact: nicoleta.vrajescu@nexia-abs.com
Website: www.nexiaabs.com