Today my friends I shall tell you a few things on the above subject, coming out of my long business and professional experience in Romania.

Most of the beaurocratic systems go back to the communist regime and although efforts have been done by the Romanian authorities to change and simplify systems, this process is too slow, if we consider that more than 2 decades have passed since the change.

Salary declarations: Each employer (physical or legal person) after the end of each month has to make declarations for salaries, if he employs one or more employees. And for each month one combined declaration is not enough but 3-4 declarations have to be made for the different funds of social insurance and make equal number of payments (not one payment for each month). And to do this the employer’s accountant or some other employee has to wait in long queue wasting unproductive time for the employer and the Local authority staff.

‘Proces Verbal’: After the end of each year every business has to prepare a lot of documents to keep for inspection by the authorities, such as forms with accounts information, minutes approving the accounts and a lot of other documents, most of them being duplications of the final accounts which are being filed to the local authorities.

Registration of property acquired: When a new property is acquired a registration has to be made at the local authority and pay the annual building/land tax. This could be done by the notariat who makes the purchase contract, because before the contract is made, evidence that all taxes have been paid. So if the notariat makes this registration, the new owner will be registered at the local authority and be responsible for the taxes due after the purchase.

The above are some examples, but there are many other, which the authorities have to consider, simplify, and organize in a way which will be beneficial to the business activity.

 

ANDREAS KAKOFENGITIS is Chief Executive of Bestservus Group, a qualified accountant and banker with long experience in the financial sector in Cyprus, England and Romania. He is also a humorous guy with a lot of stories to share.

 

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