In the following period, an International Monetary Fund (IMF) mission will come to Bucharest in order to evaluate the macroeconomic situation and to initiate the discussions with the view to conclude a support agreement to cover the financing deficit in 2009.

Economic forecasts for this year look pretty bad, and Romania needs external funding. This funding is needed to cover the external deficit and the budget deficit having in view the strong decrease of foreing direct investments, direct investments in productive assets by companies incorporated in foreign countries and decrease of the revenues at the state budget.

According to the latest estimations, the budget deficit at the end of the year is about 5% of GDP and external deficit increased in October to 14.4 billion euros, being almost 11% higher than after ten months of 2007. read more»

National Tax Administration from Romania (ANAF) includes the amounts derived from the rental contracts within the category of incomes obtained from self-employment. Exceptions are contracts to lease agricultural goods. According to the Fiscal Code, are treated as income from rents all income, in cash and / or in kind, resulted from the giving up of the use of movable and immovable property acquired by the owner, beneficial owner or other legal owner.

On the charge, there will be:

• tax net income, the rate of 16% - compared with 12% share of the gross income from property disposal use;
• tax net income, the rate of 5.5% CASS - like any income derived from independent activities

Regarding the taxation, the person who derives income from property disposal use has the obligation to fill in, until the 15 of May next year, the form 200 "Declaration on income made", code 14.13.01.13.

The Administration of Timpuri Noi society that owns a 5 hectares plot of land in the center of Bucharest asked last week the approval of the shareholders to obtain finances either by selling plots, either by accessing of loans from institutiuons or from natural persons.

Bucharest's provider of engines, turbines, equipments and spare parts is about to be relocated, thus he put up for sale the land on which there was the plant's platform at the price of 100 million euros, without VAT. The plant's managing board received last year many offers for the land situated in Unirii area after the shareholders authorized him to capitalize, by negociating, the Company's building. But the offers were rejected because it did not carry out all the criteria.

Although the number of the transactions contracted on the real estate market diminished drastically in the second half of the year, the representative of Timpuri Noi declares that the demand for his lands did not decreased.

The state has decided to increase the capital of the CEC Bank with 900 million lei and Eximbank and the Guarantee Loans for SMEs want to fully ensure the loans for small business offered by commercial banks in order to relaunch the process of financing for SMEs .
The trend to generate new products for small and medium enterprises is a reason of joy for companies. These loans are specially offered to finance current business, not for major investments in such cases banks preferring to maintain a strict control.
These loans are coming to meet the needs of small business owners. For this reason the loans offered without any material guarantee provides, first of all, the advantage of obtaining the necessary amounts of a good management of current payments. Most entrepreneurs who are facing difficulties in this regard have available funds for short term expenses. The cost to access such a product bank is similar with the one of a normal credit.

The evaluation for oil barrel price made by Goldman Sachs analysts is very optimistic - the oil price could decrease till 30 dollars in the first quarter of the next year.

The orders decrease as a result of the global crisis and the recession from some very industrialized states are the main reasons of this evaluation.

Also, it's possible that OPEC will reduce at the beginning of the next year the production with a million barrels/day over the expected decrease of this month.

Now, the oil is quoted at 46,28 dollars per barrel in New York and 46,41 dollars per barrel in London. The values are with approximately 100 dollars less than the record quotation from July, 147,27 dollars per barrel.

Starting 15th of December 2008 the value added tax rate decrease from 19% at 5% for dwellings transactions with a maximum value of 100 000 Euro.

The measures intends to unblock the real estate market and has a double target: to prevent spreading the effects of economic crisis and as social protection measure.

The new 5 % of VAT fated to relaunch the construction and real estate sector but is a difficult process without a sustained lending process, a first good step might be the restart of financing process by banks.

The decrease of VAT, on long term will actuate and diversify the offers for the low sector of real estate where now the request is high for 100 000 – 120 000 Euro dwellings.

According to a bill that is to be introduced within the Romanian Parliament, starting with next year the employees might receive vouchers for holiday from the employer. The maximum annual value that might be granted will represent the equivalent of six minimum gross wages per economy.

In accordance with the agreement between the Government, the syndicates and the associations of employers, beginning with the 1st of January 2009, the minimum gross wage granted will be 600 RON, therefore the employer might receive at the most 3600 RON per year for the holidays.

In this way, the law allows to the employer to offer a supplementary benefit to the employees, under the form of a payment for the holiday, out of which the state will return the taxes. The condition for the employer to benefit of this facility is that the company registers profit. read more»