Nexia ABS expertise in agriculture
Agriculture continues to be supported by increasing State-guaranteed credits that farmers can access under advantageous conditions. These credits are now equivalent to the amount of the subsidy due for five years compared to three years as it was initially and are granted based on the certificates issued by the Payments and Intervention Agency for Agriculture (APIA).
e-Invoice to be implemented gradually
Electronic invoicing will be a mandatory task for companies starting with 2024 in B2B relations. Now all measures are taken to implement this in time and systems are tested to have a smooth transition. Although neither the companies nor the State are prepared to use it, a gradual use is planned, backed by the traditional reporting system. New changes will also be adopted for Fiscal Code to support this initiative. Also the VAT situations will be improved especially for reimbursements.
Indirect State Aid for Digital Innovation
SMEs will soon be able to access an indirect non-financial aid for consultancy on digital innovation from specialized hubs which will request finances from the State budget. Two projects are already released on this matter.
Minimum wage increase
Starting with the 1st of October 2023 the minimum statutory wage (gross amount) increases by 10% to RON 3300, equivalent in EUR 660. For the construction field the minimum amount rises also to RON 4500, equivalent in EUR 900. The previous increase was effective since January 2023, due to inflation rise to 15% and a trend to align to EU average. Over 30% of the workforce is still paid with the minimum wage, a critical issue in the system.
Financial Aid for Young Farmers
Young farmers can receive State aid through DR – 30, Strategic Plan 2023 – 2027, only on a commercial entity.
Special tax rules
The Government is looking to set special tax rules in order to limit the large profits on banks and multinationals. For meal tickets issuers are also willing to transform them in money. New rules are also implemented for taxation on expensive properties and cars.
VAT increase
VAT for real estate to rise from 5 to 9%, plus complying with certain conditions.
Inactive Firms
Companies can request the Trade Register to be set up to three years period as inactive. During this period, it is not necessary to submit fiscal declarations, but it is mandatory to submit the annual financial situations.
Limit the tax evasion
Few measures are implemented to limit the tax evasion: cash transactions are limited by 80%, non-identified income sources are taxed by 70% and B2G payments are processed only if invoices are registered through e-invoice platform. Also fines are applied and even assets confiscation is performed in case of unregistered activities or no provenience documents are provided.
e-Seal to be added to e-Transport
A new system e-Seal to monitor goods is added to e-Transport, that use electronic devices and IT application to allow the competent authorities to determine the potential diversion points of road transport of goods, regardless of whether they are in transit or have as their final destination an economic operation on national territory. This is implemented in order to track the traceability of goods on road transportation routes, to increase drivers responsibility and avoid tax evasion.
Fiscal Reform adopted
New taxes are approved by the Government to stabilize the deficit and inflation for the end of 2023 but increasing business vulnerability is pointed out. Further debates are performed in many structures.
EU directive on Profit Tax
Starting with 2024 the large groups of companies will have to comply with the EU directive nr 2523 regarding the minimum of 15% on Profit Tax. This is aimed to harmonize jurisdictions, increase transparency and ethics, decrease tax evasion and create a more equitable business environment.
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