SIMILAR ARTICLES

Q2 / Average monthly income per capita in Romania has risen to nearly RON 1,600: Changes in redistribution of family budget

Data published by INS for the second quarter of 2018 show that Romanians’ monthly incomes have reached nearly RON 1,600 per person. They were RON… Mai mult

Current account deficit flickers to red on dashboard

According to the data released by Eurostat, Romania’s current account deficit exceeded, in the second quarter of the year, the threshold of five percentage points… Mai mult

Strategic chemical industry: Romania, on top in import increase and ranking last in EU in terms of increase in exports outside single market

Data published by Eurostat show that Romania recorded the second highest annual growth rate in imports of non-EU chemicals from 2007 to 2017 (13.1% per… Mai mult

Economic growth in the pocket: Current accounts vs. saving accounts – 64% to 4.5%

  Rising incomes have fuelled consumption and, implicitly, the economic growth in recent years, but not the savings. Although a large proportion of the population… Mai mult

Domestic software and IT services market declines, growth will only be based on external market

Total turnover in the IT sector increased by 11 percentage points in 2017 compared to 2016 and exceeded the four billion euro threshold forecasted, according… Mai mult

36 positions in one year: that is how much Romania lost in terms of tax-accounting system simplification

de Adrian N Ionescu , 7.5.2018

Businesses in Romania face the 18th world’s highest complexity of the accounting and tax systems.

The complexity level of tax and accounting requirements in Romania went up 36 positions in one year in 2018 Financial Complexity Index, according to the assessment of the 2017 regulations in 94 countries.

Only Croatia (12th) and Albania (14th) are worse than Romania in the Central and Eastern Europe, if Turkey, Russia and Belarus are not included.

Ukraine, Bosnia and the Republic of Moldova are better!

All the countries with which we usually compare (those in the Central and Eastern Europe) are much better.

The study based on which the ranking has been made was conducted by TMF Group, one of the relevant global advisory providers having 7,000 experts in 83 countries.

Ranking relevance

The difficulty of doing business, or the (un)attractiveness of the business environment in a country, depends on the complexity of the tax and accounting regulations, according to the authors of the study.

On the other hand, countries with more advanced economies have developed more complex tax and accounting systems. However, difficulties are lower in Germany than in Romania.

Main analysis criteria

The ranking has been made by evaluating the answers to 74 questions addressed to TMF Group experts from these countries about the complexity of:

  • Compliance with regulations (cross-border transactions, corporate representation, data storage)
  • Taxes (registration, number and types of taxes)
  • Reporting
  • Accounting system (rules, relations with authorities and technology that supports them).

Details

The evaluation has also been made based on additional complexity parameters for each of the four main categories above:

  • the frequency of legislative changes,
  • number of rules and exceptions to their application,
  • impact of technology on the accounting system.
  • differences in instructions depending on authorities,
  • accounting and tax regulations in relation to local GAAP (generally accepted accounting principles),
  • reporting and audit requirements in local language and deadlines,
  • VAT and income tax registration,
  • risks associated with non-compliance,

Full ranking

Each of the four categories of criteria mentioned above contributed to the final complexity score by an average rating of:

  • 61% – compliance (in the 2017 Index: 60%),
  • 57% – reporting (55%)
  • 49% – taxes (48%).
  • 46% – accounting (51%).

Comparisons

All countries with which we usually compare are better and, besides them, many other countries in the region. Bulgaria has the simplest tax and accounting requirements. The regional complexity (difficulty) ranking continues with:

  • Ukraine (19),
  • Greece (22),
  • Slovakia (23),
  • Slovenia (39),
  • Bosnia (40),
  • Lithuania (44),
  • Republic of Moldova (45),
  • Serbia (47),
  • Hungary (48),
  • Latvia (49),
  • Poland (51),
  • Estonia (58),
  • Austria (59),
  • Czech Republic (61) and
  • Bulgaria (65).

At the top of the list, countries with economies having authoritarian administration systems such as China (1) and Russia (10) are among the most difficult accounting and fiscal regimes.

Both Italy (4) and France (6) have problems, but precisely because of the delay in adapting their regulations to the evolution of their advanced economies.

Financial Complexity Index 2018

The study is at the second edition after its launching in 2017 and is dominated by the impact of the global trend in the need for transparency and compliance.

Many countries have reacted in the meantime to the OECD Basic Erosion and profit Shifting (BEPS) project, which means more transparency in relation to the ultimate beneficial owners (UBO) and transfer pricing.

Also, the Common Standard Reporting (CSR), designed to allow the automated exchange of information between jurisdictions through financial institutions, has started to produce an impact.

“Countries are as unique as ever and each of them addresses these global issues in a different way, which has led to the current configuration of this ranking,” mentions the study.

Mergeți în homepage ›

Publicat la data de 7.5.2018

Lăsați un comentariu


NEWS

Cluj-Napoca - only city in Romania that receives European funds for innovative projects

Only Cluj-Napoca is among the 22 European cities that will receive financing from the European Regional Development Fund (FEDR) for innovative solutions in addressing urban… Mai mult

Prime Minister Dancila dismissed 13 of 15 civil society representatives from Economic and Social Council. They were blocking legislation that did not gathered all opinions

Prime Minister Viorica Dancila has replaced 13 of the 15 civil society representatives in the Economic and Social Council (CES). Following a decision published on… Mai mult

West Quadrilateral / Four counties joined to directly access European money for major infrastructure projects

From right to left: Gheorghe Falca, Nicolae Robu, Ilie Bolojan. Emil Boc, Mayor of Cluj Napoca, misses Four mayors from the West of the country… Mai mult

Chamber of Deputies / PSD loses UDMR’s support for amending Offshore Law, draft returns to committees for a week

The plenum of the Chamber of Deputies decided on Wednesday to resend the Offshore Law to committees after a seemingly surprising request of UDMR leader… Mai mult

Government amended insolvency law. Guarantees given by Minister Teodorovici

The Government adopted on Thursday the draft Emergency Ordinance for amending and supplementing legislation in the field of insolvency, which provides among other things for… Mai mult

Romania ranked 7th in EU in terms of renewable electricity

Unlike the vast majority of the economic areas, in which we are at the bottom of the European ranking, Romania succeeded to rank 7th by… Mai mult

Resounding failure of PSD lobbying action in Brussels

There are clear signs that the lobbying action launched by the ruling coalition in Brussels in favour of the government in Bucharest will end with… Mai mult

MFP: Romania does not endorse a separate budget for Eurozone and rejects the idea of ​​taxing financial transactions

Romania does not endorse a separate budget for Eurozone and rejects the idea of taxing financial transactions, Minister of Public Finance Eugen Teodorovici said after… Mai mult

Finance Ministry wants to change rules for insolvency: state could also register claims after procedure is launched

Companies’ possibility to avoid paying creditors (and in particular the payment of tax receivables) simply by declaring their insolvency would be drastically limited, according to… Mai mult

Phil Hogan: Swine fever in Romania has an impact on neighbouring countries and EU trade in pigs

Prime Minister Viorica Dancila, European Commissioner Phil Hogan and Agriculture Minister Petre Daea The swine fever epidemics in Romania has an impact on neighbouring countries,… Mai mult

Infrastructure projects lost EUR 41.5 million following budget amendment. In what projects cuts have been made

Despite the assurances that Dancila government is concerned and intensely working on the road infrastructure projects, at the budget amendment the Transport Ministry has cut… Mai mult

European Parliament have decided to adopt in October a resolution on the rule of law in Romania

Leaders of the political groups in the European Parliament have decided to adopt in October a resolution on the rule of law in Romania. The… Mai mult

"Romania's buffers have deteriorated, the country is less prepared for a negative shock" - IMF will reduce economic growth estimate

Romania will be less prepared if the economy is hit by a negative shock, as the structural deficit has been deteriorated - IMF representative for… Mai mult

Premiere: CSAT asks Finance Ministry to amend amendment - session suspended until Government comes with a draft that does not affect budgets of secret services

President Klaus Iohannis suspended on Tuesday the CSAT meeting for discussing the budget amendment, as there was no consensus on the budgets of institutions from… Mai mult