News

Daily Newsletter - 9 August 2017

Summary

FIC (1)

Reactions to proposed VAT payment system (Source: wall-street.ro)

The Coalition for Romania's Development has warned the Cabinet that the proposal to implement the split VAT payment system would create major cash flow problems to honest tax-payers and significant blockages to all the parties involved: Treasury, lenders and ANAF.

Business community issues warning (Source: ziare-pe-net.ro)

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Macroeconomic News (2)

Reactive and chaotic taxation is back (Source: cursdeguvernare.ro)

The Cabinet released this week the regulations needed to adjust the national taxation system in order to cope with the growing budget deficit. The business community was surprised again with a reactive and chaotic procedure, the result of a lack of long-term plans.

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BNR revised this year's inflation forecast (Source: cursdeguvernare.ro)

The National Bank of Romania (BNR) has revised the inflation forecast for the end of 2017 to 1.9%, up from 1.6%. The estimated inflation rate for the end of 2018 was revised from 3.1% to 3.2%. "The domestic pressure is beginning to translate into higher production prices, as the disinflationary effect of the foreign situation is vanishing," said BNR Governor Isarescu.

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Financial News (5)

MFP wants to limit NPL sale deduction (Source: profit.ro)

The Ministry of Finance wants to lower the loss deduction cap for selling bad loans from 100% to 30%, according to a draft decree. Government officials have been speaking against the full deductibility lately on grounds that it had allowed some banks to avoid paying the profit tax for years.

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Andreas Treichl annoyed by local taxes (Source: bursa.ro)

Gernot Mittendorfer, CFO of Erste Bank, said that the bank had received a letter from ANAF regarding the results of its BCR inspection. The letter seems to have annoyed Andreas Treichl, the president of Erste Bank. Treichl said on Friday that he cannot discuss Romanian taxation without getting angry.

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PSD scares private sector again (Source: romanialibera.ro)

The Coalition for Romania's Development has warned the Cabinet that the proposal to implement the split VAT payment system would create major cash flow problems to honest tax-payers and significant blockages to all the parties involved: Treasury, lenders and ANAF.

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Joining hands against VAT account (Source: adevarul.ro)

The Coalition for Romania's Development has warned the Cabinet that the proposal to implement the split VAT payment system would create major cash flow problems to honest tax-payers and significant blockages to all the parties involved: Treasury, lenders and ANAF.

Separate accounts (Source: manager.ro)

The Coalition for Romania's Development has warned the Cabinet that the proposal to implement the split VAT payment system would create major cash flow problems to honest tax-payers and significant blockages to all the parties involved: Treasury, lenders and ANAF.

Investment News (4)

UniCredit hopes for liquidity (Source: bursa.ro)

UniCredit bonds worth RON 610 million made their debut yesterday on the Bucharest capital market. More than 30 investors bought the bonds, including pension funds, insurers and the European Bank for Reconstruction and Development. This move is part of the bank's efforts to diversify its financing sources, according to strategy consultant Gabriel Tinta.

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Transgaz bids for DESFA (Source: cursdeguvernare.ro)

Transgaz has teamed up with French company GRTgaz to send a letter of intention regarding the acquisition of the 66% stake in Greek natural gas pipeline operator DESFA, according to a press release. DESFA is linked to the Bulgarian and Turkish pipe networks.

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MMA released information (Source: startupcafe.ro)

The Ministry for the Business Environment (MMA) released on Tuesday official information regarding the period during which SMEs can register with the Commerce 2017 program. The program offers grants of up to EUR 50,000 per company for investments.

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Private investment hurt by general chaos (Source: agerpres.ro)

Private investment is generally low because of the "general chaos" that discourages investment, according to statements made on Tuesday by BNR Governor Mugur Isarescu.

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Legislative News (2)

Dividends could become revenue tax exempt (Source: agerpres.ro)

The revenues reported by private individuals from dividends paid beginning with January 1, 2018, could be exempt from the revenue tax, according to a draft decree.

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Romania is only EU member to make split VAY payments mandatory (Source: cursdeguvernare.ro)

The implementation of the new split VAT payments system on September 1 is bound to have a significant impact on the companies operating in Romania, while also making Romania the only EU member state to have mandatory split payments, according to PwC's tax experts.

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