London, United Kingdom, April 18, 2012 --(PR.com
)-- Businesses in Romania are subject to the second most complex tax system in the world – at least in terms of the number of separate taxes that exist.
The annual Paying Taxes survey from the World Bank Group (part of its larger Doing Business report) indicates that Romanian businesses last year could be asked to make up to a total of 113 separate tax payments – significantly in excess of the average 13 payments per year made by companies in OECD high-income countries.
The annual World Bank Doing Business report assesses regulations affecting domestic firms in 183 economies, ranking each on the basis of various criteria including ease of starting a business, insolvency resolution, cross-border trade and, for the first time, ease of access to electricity. Russell Bedford member firms have contributed to the report’s Paying Taxes survey since 2009, with 51 member and correspondent firms this year contributing data on tax regulation, compliance and the real tax burden on businesses and entrepreneurs.
It’s not all grim reading, however. This year’s report, Doing Business 2012: Doing Business in a More Transparent World, makes clear that the emerging economies of Eastern Europe and Central Asia have done most to reduce the tax burden on companies – in terms of both reducing compliance requirements and lowering the total tax rate – and cites Romania as among those countries having merged or eliminated taxes other than profit tax. Moreover, while Romanian companies may be subject to a greater number of individual payments, the amount of time this takes is not that much greater than that of their west European peers. Romanian firms spend an average of 222 hours per year on tax compliance, compared to 186 hours for businesses in OECD high-income countries.
Andrei Badiu, partner in Russell Bedford International member firm 3B Expert Audit SRL, Romania, commented: “Businesses in Romania have to expend far more effort than necessary on meeting their tax compliance obligations. But recent government initiatives do promise some improvements in the medium term. The introduction of electronic filing, the proposed increase in the mandatory VAT threshold (to €50,000), as well as simplifications to VAT refunds for exporters, should help small businesses in particular. The situation will not show any real improvement, however, until we see a ‘one-stop-shop’ for tax declaration and payments; and we will continue to support any initiatives leading to this.”
For further information, contact Andrei Badiu on +40 722 566 039 or Kempton Bedell-Harper on +44 20 7410 0339. Alternatively, visit the websites at www.russellbedford.ro and www.russellbedford.com .
Note to Editors
About Russell Bedford International
Established in 1983, Russell Bedford International is a global network of independent firms of accountants, auditors, tax advisers and business consultants.
Ranked amongst the world's leading accounting and audit networks, Russell Bedford is represented by some 460 partners, 5000 staff and 200 offices in more than 80 countries in Europe, the Americas, the Middle East, Africa and Asia-Pacific.
All Russell Bedford affiliates are well-established firms offering international business advice and services to local and multinational clients. Most provide a full range of services comprising accounting, auditing, tax advice, general business guidance and financial consulting. In addition, many have special expertise in particular fields, such as international taxation or information technology.
In January 2008 Russell Bedford International was named one of the first 17 full members of the IFAC Forum of Firms after reporting it had implemented a globally coordinated quality assurance programme, committed to the use of International Standards on Auditing (ISAs), and met other specific ethics requirements.
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