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Romania ranks 52 of 189 countries in Paying Taxes 2015 top


Romania ranks 52nd in the Paying Taxes 2015 top, climbing by 82 positions compared to the previous edition of the top. It is now among the best ranking countries of Central and Eastern Europe, according to the annual report made by PricewatershouseCoopers (PwC) and the World Bank, released on Thursday.


According to the source, Romania is among the best ranking countries in Central and Eastern Europe before Poland (87), Hungary (88), Bulgaria (89), Slovakia (100) and Czech Republic (119) but is behind the Baltic states (Latvia 24, Estonia 29, Lithuania 44), Croatia (36) and Slovenia (42).

“Romania is one of the performers of this year’s edition of Paying Taxes report and that was possible due to the measures adopted by fiscal authorities over 2010-2013 to facilitate electronic payments and online declarations,” said Mihaela Mitroi, the leader of the Fiscal and Juridical Consulting Department of PwC Romania.


At present, companies in Romania must make 14 tax payments in a year (compared to the European average of 12 annual payments) and are spending 159 work hours to fill in and send these declarations, the European average being 176 hours.


On the other hand, for the overall tax rate, which measures the share of taxes and contributions made by a company as profit percentage, Romania ranks slightly above the European average with 43.2% compared to 41%.


At global level, the overall average tax rate of a company is 40.9% of commercial profit, with 25.9 payments per year and 264 hours spent to fulfil fiscal requirements.


“In the ten years in which the Paying Taxes report was made, the time spent by a company for fiscal payments dropped by 10 days, which shows the increase of the use of electronic payments at world level. 105 of the 379 fiscal reforms recorded in Paying Taxes reports starting with 2004 concern the online deposition of fiscal statements and payments,”the PwC report shows.


Paying taxes 2015 takes into account mandatory contributions a company has to make during a year. Taxes and contributions include the tax on profit, social contributions and labour force taxes paid by employers, taxes on property, on transfers of property, tax on dividends, on financial transactions, for waste collecting, fleet and road taxes and other smaller taxes.


The Paying Taxes report analyzes tax paying in 189 countries in the world by taking into account three major indicators: overall taxing rate, which measures the share of taxes and contributions paid by a company as percentage from profit, the time needed to comply with fiscal law and the number of payments made by a company to fulfil fiscal obligations.


The annual Paying Taxes study is based on the Paying Taxes chapter of the World Bank Doing Business report.


Last year Romania ranked 134th in the top.