Business News about Romania and the Romanian business environment

From the point of view of easiness of doing business, in the present Romania is ranked among first 40 countries worldwide, climbing more positions in the last few years.
The attractiveness of doing business in Romania is based on many facts and factors, out of which the level of tax payment that is the second best among the countries from the south east region of Europe, the simplification of the process of starting up a business and the significant reduction of the number of taxes due to be payed.
Romania has one of the lowest dividend taxes, namely 5%.
Regarding the yearly profit tax an usual company is being taxed in general, with 16% on their volume of profit.
For the case that the respective companies are classified based on their size, as microenterprises, they are benefiting of even more advantageous taxes and conditions (for example 1% up to 3% from the volume of their turnover).
A lot of important international companies like Huawei, Microsoft, Daimler, Aerotec, Renault, Continental a.s.o. have set up their businesses in Romania, as a result of the favorable, predictible and stable business environment and the related advantages in Romania.
Regarding the evolution of the macroeconomic key indicators of Romania it is to say that the growth rate of the GDP was of 3.8% in 2015, of 5% in 2016 and the forecasts for 2017 and 2018 are that it will exceed 5%. The unemployment rate is of abt. 6.5% and is also developing in a favorable way, that is to say is lowering. The inflation rate das dramatically dropped down, down to almost negative values recently.
The general VAT has dropped down from 20% before 2017 to 19% beginning with 1st of January 2017 and will diminish to 18% beginning with 2018. There are also diminished values of the VAT rate, namely of 9% and 5%. The 9% VAT is applying for certain goods and services, among which food, restaurant and catering services and also accommodation services. The 5% reduced VAT is applying for cultural products and services, such as: books&magazines, cinema, museums, expositions and cultural events tickets.