Romania – Muhasebe News

Romanian inflation slows more, as industrial production increases

MuhasebeNews — Mon, 15 May 2023 10:21:20 +0000

Consumer price inflation in Romania decreased for the second month in a row in April, according to preliminary data from the National Institute of Statistics.

Consumer prices increased by 11.2 percent year on year, slower than the 14.5 percent increase seen in March.

In April, food costs jumped 19.84 percent year over year. Non-food prices increased by 5.83 percent, while service costs increased by 10.64 percent.

In April, the consumer price index increased 0.75 percent month on month.

Separate figures from the statistical office revealed that industrial production increased 0.2 percent month on month in March, seasonally and working-day adjusted.

Industrial production declined 3.4 percent year on year in March, according to working-day adjusted data.

In March, manufacturing output increased by 1.1 percent month on month. Utilities output fell 4.1 percent, while mining and quarrying output increased 1.2 percent.

Source: RTT NEWS
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Romania’s GDP Growth in the Fourth Quarter Has Been Revised Down Slightly

MuhasebeNews — Fri, 07 Apr 2023 08:16:43 +0000

According to the most recent figures from the statistical office, Romania’s economic development accelerated somewhat less than expected in the fourth quarter of 2022.

GDP grew 4.5 percent year on year in the December quarter, quicker than the revised 3.7 percent increase in the previous three months. That was slightly lower than the 4.6 percent seen in the previous estimate released on March 8.

Seasonally adjusted GDP growth increased to 4.8 percent in the third quarter, up from 4.4 percent in the previous quarter. The initial report said that the pace of expansion was 4.9 percent.

Total final consumption increased by 3.0 percent over the previous year, while gross fixed capital formation increased by 2.2 percent.

The change in inventories contributed favorably by 0.4 percent, while net exports fell by 0.8 percent.

GDP increased by 1.0 percent seasonally adjusted in the fourth quarter, following a 1.2 percent increase in the third quarter. Figures remained unchanged from the prior report.

Turkey’s Social Security Agreements with 28 Countries!

MuhasebeNews — Tue, 09 Apr 2019 06:03:11 +0000

Social Security of Our Citizens Working Abroad
Social Security Agreements provide various rights such as;

Equal treatment of citizens of both parties in terms of rights and obligations,
Aggregation of periods of insurance completed in the territory of the other contracting party for the determination of entitlement to a benefit,
In case of an illness, the insured person and his/her family members can avail themselves of the right to healthcare benefits while staying in the territory of the other contracting party,
Family members can avail themselves of the family benefits (child benefits and increments) while residing in the territory of the other contracting party,
Entitlement to a retirement pension for an insured person, who attains the required age after returning to the other contracting party,
Continuing to receive the pension, acquired regarding the employments in one of the contracting parties, after transferring of the residence to the other contracting party,
In case of death of the insured person, family members residing in the territory of the other contracting party can be entitled to a widow’s or orphan’s pension and a lump sum payment as the survivors of the deceased.

Accordingly, those who will avail themselves of the provisions of the agreement are considered equal in the legislations of the contracting parties to the citizens of that country in terms of rights and interests through a common and key provision of the agreements. Thus our citizens employed in the contracted countries and their dependents can benefit from their social security rights under the same conditions as the nationals of that country.

As a result of the social security agreements, our citizens in Turkey have the opportunity to avail themselves of their social security rights, arising from the legislation of the other country and acquired with respect to long and short term insurance branches. In addition to the insured person himself/herself, his/her family members living with him in the country of employment, the family members living in Turkey can benefit from this right.

Turkey has signed Social Security Agreements with 28 countries. These agreements are enumerated in the table below.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

How to Get Refund of VAT Paid in Turkey?

MuhasebeNews — Thu, 16 Aug 2018 18:00:19 +0000

I have a refund regarding transportation activities:
– If your domicile, workplace, legal center and work center is not located in Turkey,
– If you are a resident of a country providing reciprocity between Turkey on VAT refund, ( Bosnia- Herzegovina, Bulgaria, Denmark, Finland, France, Netherlands, Ireland, Switzerland, Italy, Malta, Norway, Portugal, Romania, Serbia, Slovakia, Slovenia) ( VAT Law – Circular numbered 60)
– If the delivery of goods and services regarding the transportation activity are fuel, spare part, maintenance and repair,
– If the cost of the purchased goods/services, including VAT, is over the limit of invoicing within the related period. (900 TL for 2016 and 2017)
– You can get your VAT refund by applying to the İstanbul Tax Office Directorate Boğaziçi Corporate Tax Office Directorate or Marmara Corporate Tax Office Directorate with a petition.

I have a refund regarding participation to exposition, exhibition and fair:
– If your domicile, workplace, legal center or work center is not located in Turkey,
– If you are a resident of a country providing reciprocity between Turkey on VAT refund, ( Bosnia- Herzegovina, Bulgaria, Denmark, Finland, France, Netherlands, Ireland, Switzerland, Italy, Malta, Norway, Portugal, Romania, Serbia, Slovakia, Slovenia) ( VAT Law – Circular numbered 60)
– If the delivery of goods and the execution of services regarding the participation to exposition, exhibition and fair are exclusively related to these jobs (accommodation included),
– If the cost of the purchased goods/services, including VAT, is over the limit of invoicing within the related period. (900 TL for 2016 and 2017)
– You can get your VAT refund by applying to the tax office determined by the Tax Office Directorate/ Defterdarlık at the province where the exposition, exhibition and fair activities are executed with a petition.

I have a refund resulting from the touristic shopping:

You cannot get VAT refund in case you bought a touristic service.
– If you are a foreign national individual not residing in Turkey,

You can get refund of VAT providing that you get the goods out of Turkey within 3 months beginning from the date of the invoice or similar documents and if:

each invoice for the goods you purchased is over 100 TL (VAT exclusive),

the goods you purchased are not among the goods listed in Special Compsumtion Tax Law Annex I,

the seller from whom you purchase goods is a taxpayer who has the License of VAT Export Exception or is eligible to prepare the special invoicing.

The special invoice which is prepared by the seller for the sales under exception needs to involve the following information;
– Type and number of your passport,
– The branch of your bank and your account number in that bank.

The seller has to prepare the invoice as 4 copies and submit 3 of them to you.

If you want to get your refund from the bank branch at customs;

The salesperson should give you a cheque belong to a bank he has contract; indicating the date and number of the invoice and the total amount of VAT as TRY (Turkish Lira)

You may get your VAT refund from the bank branch at the customs after you get the cheque and the invoice approved by the customs officer.

If you want your refund to be paid to your bank account;

In case you sent your invoice; which is approved as you carry the goods with you, within 3 months following the date of your departure; your refund might be deposited to your bank account or might be sent to your address within 10 days after the salesperson receives the invoice indicates your refund amount.

If you want your refund to be paid in cash;

The salesperson may pay your refund in cash in case you bring the approved copy of your invoice to the salesperson within 3 months following the date of your departure.

Foreign Healthcare Transactions in Turkey

MuhasebeNews — Tue, 10 Oct 2017 10:00:08 +0000

23 of all the social security agreements signed by our country are still in force and the agreements with following countries include healthcare insurance: Germany, Netherlands, Belgium, Austria, France, TRNC-Turkish Republic of Northern Cyprus, Macedonia, Azerbaijan, Romania, Czech Republic, Bosnia-Herzegovina, Albania, Luxemburg and Croatia.

However, the provisions on healthcare insurance in the agreements signed between Azerbaijan and Albania cannot be implemented due to the reasons stemming from their legislations.

Which persons can receive healthcare services abroad according to the social security agreements?
Unless otherwise provided in the agreement on social security, the following persons have the right to receive healthcare benefits on behalf of our Institution;

1. Insured persons (banks, insurance and reassurance companies, chambers of commerce, chambers of industry, stock markets and the workers employed in the unions constituted by them) under the scope of letter (a) of the first paragraph of Article 4 of the Law No. 5510 and of transitional Article 20 of the Law No. 506 and their dependent family members. Of the persons specified in this scope, the following can receive healthcare benefits while staying or residing in a foreign country:

Insured persons temporarily posted to a foreign country,
Persons who are permanently posted to a foreign country and their dependent family members,,
Dependent family members of the insured and retired persons staying abroad for educational reasons,,
Insured and retired persons staying abroad for touristic purposes and their dependent family members,,
Dependent family members of the insured persons who are permanently residing abroad and retired persons and their dependent family members,,
Members of universal health insurance who are sent to another country for treatment and their dependent family members.,

2. Apart from this; according to the legislation of our Institution, the following persons can avail themselves from the right to receive healthcare benefits provided by our Institution under the scope of universal health insurance on behalf of the contracted countries;

For temporary stay; all the persons registered on the document (formulary) of right to healthcare benefits, only in cases of emergency,
For permanent residence; persons specified in the social security agreements.

In this context, in order to receive healthcare benefits in our country, respective persons are required to be an insured member of universal health insurance or dependent of the insured in question.

Conditions for Receiving Healthcare Benefits for the Persons Having Foreign Insurance
Persons having foreign insurance, who either temporarily stay or permanently reside in our country, are required to get a formulary from the institution to which they are registered and submit it to the Departments of Foreign Services operating within the scope of Social Security Provincial Directorates/Social Security Centers in their place of stay or residence; or to the Social Security Centers designated by Social Security Provincial Directorates.

Through the Document of Healthcare Benefits under Social Security Agreement, they can avail themselves from right to healthcare benefits in contracted health facilities, like other insured members of universal health insurance, free of charge excluding the rates of contribution and share which have to be paid legally by the insured himself/herself.

In cases of emergency, the insured persons, coming from countries with whom a social security agreement including healthcare insurance applications has been concluded and who are temporarily staying in our country, can receive the formulary for the right to healthcare services from the “Department of Foreign Services” in their place of stay in Turkey by submitting the document issued by the social security institution in their country. Besides, these documents can be confirmed through Social Security Centers designated by Social Security Provincial Directorates.

Benefiting from Emergency Healthcare Services for the People Having Foreign Insurance
In order to receive healthcare services, foreign insured people are required to make an application to the contracted health facilities of the Ministry of Health or to the private or training health facilities with the “Document of Healthcare Benefits under Social Security Agreement.”
Only through the referral of our contracted units, services can be provided from the non-contracted health facilities. When a person applies directly to a non-contracted health facility, regardless of this regulation, his/her expenses of treatment can be covered by the Institution on condition that it is an emergency situation.

Whether the treatment is an emergency or not is determined through the inspection of the relevant submitted medical documents by the contracted health facilities.

In such a case, the insured person shall apply to the Social Security Provincial Directorate/Social Security Center together with the reports regarding his/her treatment and invoices if he/she has made the payment. If the treatment is accepted as an emergency, a reimbursement shall be made to the insured in accordance with the provisions set forth in Medical Enforcement Declaration (SUT).

Duration of Benefiting from Healthcare Services for Foreign Insured People who are Temporarily Staying in our Country and Determination of the Family Members to Receive Healthcare Benefits
People, who are temporarily staying in our country, have the right to healthcare benefits for the period specified in the documents that they brought with them. For temporary stay, people to receive healthcare benefits are determined according to the legislation of the country issuing the document.

In case healthcare benefit is needed after the expiration of the document;

A new document for treatment period shall be requested from the contracted country by applying to the relevant unit of the Institution.
Insured person shall directly contact with the insurance institution of the country to which he/she is subject and request a new document for treatment period. The healthcare services provided meanwhile have to be paid for.
After the document for the extension of the period is received from the contracted country, a “Document of Healthcare Benefits under Social Security Agreement” shall be issued retrospectively and the expenses shall be reimbursed to the respective people pursuant to the provisions of Medical Enforcement Declaration (SUT).

Duration of Benefiting from Healthcare Services for Foreign Retired People who are Permanently Residing in our Country and Determination of the Family Members to Receive Healthcare Benefits
People, who are permanently residing in our country, have the right to receive healthcare benefits for the period specified in the documents issued by the institutions of the contracted countries until a notification regarding the termination of the right to healthcare benefits is received.

For the permanent residences, the people to receive healthcare benefits subject to the agreement.

In our agreements with Germany, Netherlands, Belgium, France, Czech Republic, T.R.N.C., Luxemburg and Croatia, family members are determined pursuant to the legislation of our Institution; while in our agreements with Macedonia, Romania, Azerbaijan, Bosnia-Herzegovina and Albania they are determined according to the legislation of the relevant country.

Documents of right to healthcare benefits in cases of permanent residence are sent to our Institution by the insurance institutions of contracted countries either for a long time or without specifying the date of termination of the right.

However, the rights of foreign insured people in order to receive healthcare benefits are sometimes terminated by the relevant sickness funds for various reasons.

For the purpose of checking whether foreign insured people’s rights to healthcare benefits are continuing or not, the mentioned documents are issued in every six months’ period and given to the relevant persons.

Where the Costs of Treatment can be reimbursed by Foreign Insured Persons who pay for Their Treatment without a Document of Right to Healthcare Benefits?
Foreign insured persons who pay for their treatment in our country without obtaining the document (formulary) for receiving healthcare benefits from the insurance institution to which he/she is registered shall keep their reports and invoices regarding the treatment. After returning to his/her country to which he/she is registered, he/she shall request a reimbursement by submitting the relevant reports and invoices indicating the healthcare expenses to the institution to which he/she is affiliated. In this case, if it is set forth in the agreement, the insurance institution receiving the application shall request information from our Institution on the specified cost of the treatment provided in our country by sending the relevant reports and invoices. Following the receipt of the notification on the specified cost of that treatment, institution shall reimburse the notified amount to relevant person.

Who can Receive Healthcare Benefits in Germany in Accordance with the Social Security Agreement between Germany and our Country?
Only our workers and retired workers were to avail themselves of the healthcare provisions of the Social Security Agreement signed with Germany.

By way of reaching a consensus with German liaison body, craftsmen and civil servants and people who are retired in this context and also their dependants are covered by the healthcare provisions of the Social Security Agreement between Turkey and Germany.

As a result of this regulation, all the insured and retired persons and their dependants going to Germany, have the opportunity to avail themselves of healthcare benefits.

OPEC, Non-OPEC Extend Oil Output Cut by Nine Months to Fight Glut!

MuhasebeNews — Wed, 31 May 2017 11:28:41 +0000

Euro area annual inflation was 1.9% in April 2017, up from 1.5% in March. In April 2016 the rate was -0.2%.

European Union annual inflation was 2.0% in April 2017, up from 1.6% in March. A year earlier the rate was -0.2%. These figures come from Eurostat, the statistical office of the European Union.

The lowest annual rates were registered in Romania (0.6%), Ireland (0.7%) and Slovakia (0.8%). The highest annual rates were recorded in Estonia (3.6%), Lithuania (3.5%) and Latvia (3.3%).

Source: Republic of Turkey Ministry of Economy

What is Organization of the Black Sea Economic Cooperation?

MuhasebeNews — Fri, 12 May 2017 07:25:00 +0000

Members: Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Hellenic Republic, Moldova, Romania, Russian Federation, Serbia, Turkey, Ukraine.

On 25 June 1992, the Heads of State and Government of eleven countries, Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine, signed in İstanbul the Summit Declaration and the Bosporus Statement giving birth to the Black Sea Economic Cooperation (BSEC).

It came into existence as a unique and promising model of multilateral political and economic initiative aimed at fostering interaction and harmony among the Member States, as well as to ensure peace, stability and prosperity encouraging friendly and good-neighborly relations in the Black Sea Region.

The BSEC Headquarters- the Permanent International Secretariat of the Organization of the Black Sea Economic Cooperation (BSEC PERMIS) – was established in March 1994 in İstanbul.

With the entry into force of its Charter on 1 May 1999, BSEC acquired international legal identity and was transformed into a full-fledged regional economic organization: Organization of the Black Sea Economic Cooperation. With the accession of Serbia in April 2004, the Organization’s Member States increased to twelve.

BSEC covers a geography encompassing the territories of the Black Sea littoral States, the Balkans and the Caucasus with an area of nearly 20 million square kilometers. BSEC region is located on two continents and it represents a region of some 350 million people with a foreign trade capacity of over USD 300 billion annually.

Source: Ministry of Customs and Trade

Investment Legislation

MuhasebeNews — Mon, 13 Mar 2017 13:39:08 +0000

Turkey’s investment legislation is simple and complies with international standards, while it offers equal treatment for all investors. The backbone of the investment legislation is made up of the Encouragement of Investments and Employment Law No. 5084, Foreign Direct Investments Law No. 4875, the Regulation on the Implementation of the Foreign Direct Investment Law, multilateral and bilateral investment treaties and various laws and related sub-regulations on the promotion of sectorial investments.

Legal Framework of Foreign Direct Investment
1. Foreign Direct Investment (FDI) Law No. 4875

The aim of the Foreign Direct Investment (FDI) Law No. 4875 is:

to encourage FDI in the country
to protect the rights of investors
to align the definitions of an investor and investment with international standards
to establish a notification-based system rather than an approval-based one for FDI
to increase the volume of FDI through streamlined policies and procedures

The FDI Law provides a definition of foreign investors and foreign direct investments. In addition, it explains important principles of FDI, such as;

freedom to invest,
national treatment,
expropriation and nationalization,
freedom of transfer,
national and international arbitration and alternative dispute settlement methods,
valuation of non-cash capital,
employment of foreign personnel,
liaison offices.

The Regulation on the Implementation of the FDI Law consists of specifying the procedures and principles set forth in the FDI Law. The aim of the FDI Law with regard to the work permits for foreigners is:

to regulate the work carried out by foreigners
to stipulate the provisions and rules on work permits given to foreigners
2. Bilateral Agreements
2.a. Bilateral Agreements for the Promotion and Protection of Investments
Bilateral Agreements for the Promotion and Protection of Investments were signed from 1962 onwards with countries that show the potential to improve bilateral investment relations. The basic aim of bilateral investment agreements is to establish a favorable environment for economic cooperation between the contracting parties by defining standards of treatment for investors and their investments within the boundaries of the countries concerned. The aim of these agreements is to increase the flow of capital between the contracting parties, while ensuring a stable investment environment. In addition, by having provisions on international arbitration, they aim to prescribe ways to successfully settle disputes that might occur among investors and the host state. Turkey has signed Bilateral Investment Treaties with 94 countries. However, Turkey is a dualist country, where an international treaty has to be ratified and promulgated in order to become part of the national legal system. Within this regard, 75 Bilateral Investment Treaties out of these 94 have gone into effect so far.

75 countries
Afghanistan, Albania, Argentina, Australia, Austria, Azerbaijan, Bangladesh, Belarus, Belgium-Luxembourg, Bosnia and Herzegovina, Bulgaria, China, Croatia, Cuba, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Libya, Lithuania, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Netherlands, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Senegal, Serbia, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Yemen
Source: Ministry of Economy

2. b. Double Taxation Prevention Treaties
Turkey has signed Double Taxation Prevention Treaties with 80 countries. This enables tax paid in one of two countries to be offset against tax payable in the other, thus preventing double taxation.

80 countries
Albania, Algeria, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, China, Croatia, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Netherlands, New Zealand, Norway, Oman, Pakistan, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Serbia and Montenegro, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sudan, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkish Republic of Northern Cyprus, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Yemen
Source: Revenue Administration

Turkey is continuing to expand the area covered by the Double Taxation Prevention Treaty by adding more countries on an ongoing basis.

2. c. Social Security Agreements
Turkey has signed Social Security Agreements with 26 countries. These agreements make it easier for expatriates to move between countries. The number of these countries will increase in line with the increased sources of FDI.

26 countries
Albania, Austria, Azerbaijan, Belgium, Bosnia and Herzegovina, Bulgaria, Canada and the Province of Quebec, Croatia, Czech Republic, Denmark, France, Georgia, Germany, Libya, Luxembourg, Macedonia, Netherlands, Norway, Romania, Slovakia, Serbia, South Korea, Sweden, Switzerland, Turkish Republic of Northern Cyprus, United Kingdom
Source: Social Security Institution (SSI)

3. Customs Union and Free Trade Agreements (FTA)
A Customs Union Agreement between Turkey and the European Union has been in effect since 1996. The agreement allows trade between Turkey and the EU countries without any customs restrictions. The EU-Turkey Customs Union is one of the steps toward full Turkish membership of the EU itself.

Turkey has FTAs with 37 countries, creating a free trade area in which the countries agree to eliminate tariffs, quotas and preferences on most goods and services traded between them. This framework explains why many global companies are now using Turkey as a second supply source and manufacturing base, not only for the EU and rapidly growing Turkish markets, but also for the Middle East, Black Sea and North African markets, with the added advantage of a relatively low-cost but well-educated labor force, coupled with cost-effective transportation.

37 countries
Albania, Bosnia and Herzegovina, Egypt, Georgia, EFTA, Israel, South Korea, Macedonia, Morocco, Malaysia, Mauritius, Palestine, Jordan, Syria*, Tunisia, Montenegro, Serbia, Chile
Countries that have finalized the negotiation process: Faroe Islands, Ghana, Kosovo, Lebanon, Moldova, Singapore
Countries in the negotiation process: Democratic Republic of the Congo, Cameroon, Colombia, Ecuador, Gulf Cooperation Council, Japan, Libya, Mexico, Mercosur, Peru, Seychelles, Ukraine *suspended
Source: Ministry of Economy

Date: 13 March 2017