Fiscal facilities for recapitalization

Fiscal facilities for the recapitalization of companies are offered, according to G.O. nr. 153/2020:

• 2% for positive capitals;
• 5 – 10% for the annual capital increase;

These measures are intended to stimulate the capitalization of commercial companies and cash flows.

New law into force to sanction fraud

In November 2022, there was a European damage of over 2 billion Euros from VAT fraud. Over 200 investigations in 14 states revealed a sophisticated scheme that led to the local issuance of a law which imposes penalties on both the act and the attempt.

Survey on workforce

Almost 50% of local workforce has second job in order to afford to live decent or for extra money. Although the official inflation rate decreased from 15 to 11% in April, due to still higher real inflation and market uncertainty this trend is expected to continue this year. The survey was conducted in 2023 by the largest online recruiter ejobs.ro.

Digital platforms

A new digital platform was launched, ROeID, for public services. This aims to cover all authorities, offering a homogeneous way to administer fiscal obligations. Until this implementation the one used was ghiseul.ro. Due to many NAFA delays, overdue and postponements new measures are taken to ease firms to comply. 

CFO in Romania to shift focus

New studies on Romania market reveal that local CFOs are currently focused more (40%) to preserve and optimize the company’s value and less (20%) to increase it. This trend should be shifted in order to have a robust growth in line with country proven potential.

EU directive on data transparency

Employers are taken measures to comply until 2026 with EU directive 54/EC in discussions since 2006, in order to be able to offer more payment transparency, gender and role equality. No more than 5% are accepted between men and women on the same role. The difference is still at 13% in workforce but critical at 30% as observed in pensions, thus with a long term impact on quality of life.

Top problems faced by SMEs in the CEE – SEE region

Analyzing the data from the region reveals the following hierarchy of problems encountered by firms:

• Increasing operational costs
• Skilled workforce
• Manager availability
• Demand
• Regulation
• Competition
• Access to financing

Other data concerning the situation in the region is as follows*:

• The main sources of funding are as follows: credit lines, overdrafts, leasing, factoring, securities, shares, grants.
• SMEs in Romania predominantly used internal sources, commercial credit, and leasing.
• Currently, commercial credit accounts for approximately 20%, with a tendency to increase, and it is directly correlated with the market size. In comparison, in Poland, it stands at around 34%.

*The data is obtained from monitoring carried out by the European Commission and the European Central Bank.

Romania remains competitive in labor costs

Eurostat statistics reveal the fact that salaries are far behind the European average and that there is room for further growth. The increases indicate the highest values in the non-euro area: Bulgaria 15.3%, Hungary 13.9%, Romania 12.2% and Poland 11.7% while in the euro area: Lithuania 13.3% and Ireland 9.3%.

Hourly labour costs currently vary, at the level of the Union, between 8 and 50 Euros, respectively from Bulgaria with 8.2 Euros and Romania with 9.5 Euros to Luxembourg with 50.7 Euros. Romania with 5.3% is at the top also on the lowest shares of non-salary costs, compared to the highest in France with 32%

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