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Exam Flashcards

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1
Q

In Romania we have a tax system based on __________ tax rate

A

Flat

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2
Q

In Romania the personal income tax is

A

10%

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3
Q

In Romania we have the following tax rate for companies

A

16% 3% 1%

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4
Q

In Romania the corporate income tax is

A

16%

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5
Q

In Romania the revenue tax is

A

1% and 3%

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6
Q

According to the _________________ principle the budget is drafted and voted yearly

A

Annuality

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7
Q

The maximum value of one meal ticket that can be given by an employer with it being taxed with social contributions is _______ lei/day

A

15,25 lei

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8
Q

Orthopedic products are taxed with

A

9%

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9
Q

VAT rate in Romania is

A

19% 9% 5% 0%

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10
Q

The following products and services are exempt from VAT:

A 
Medical services
Education
Public institutions
Banking system
Churches
Public postal services
Supply of organs, blood and milk of human beings
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11
Q

19% is

A

the general VAT rate in Romania

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12
Q

Accommodation in hotels and bed&breakfast are taxed with

A

9%

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13
Q

9% and 5% are

A

The reduced VAT rates in Romania

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14
Q

Human and veterinarian drugs are taxed

A

9%

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15
Q

Draft beer is taxed with

A

9%

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16
Q

Cultural activities (tickets to museums, concerts etc.) are taxed with

A

5%

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17
Q

The hospitality industry is taxed with

A

9%

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18
Q

Property bought/sold to be used in social policy related issues (hospitals, elderly homes) are taxed with

A

5%

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19
Q

Apartments smaller than 120 m2 and houses including the garden smaller than 250 m2 & with a price smaller than 450.000 lei & if the buyers didn’t previously benefit from a reduced rate are taxed with

A

5%

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20
Q

Medical services are taxed with

A

0% (they are exempt from tax)

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21
Q

Education is taxed with

A

0% (exempt from tax)

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22
Q

Public institutions are taxed with

A

0% (exempt from tax)

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23
Q

Books and newspapers that aren’t solely destined to advertising are taxed with

A

5%

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24
Q

Food and non-alcoholic beverages are taxed with

A

9%

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25
Q

The banking system is taxed with

A

0% (exempt from tax)

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26
Q

Churches are taxed with

A

0% (exempt from tax)

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27
Q

Public postal services are taxed with

A

0% (exempt from tax)

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28
Q

Supply of organs, blood and milk of human beings is taxed with

A

0% (exempt from tax)

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29
Q

The maximum amount that can be recovered in the current year from sponsorships is

A

min(0,5% x turnover; 20% x Gross Income)

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30
Q

According to the ___________ principle all revenues and expenses should be entered into one single document

A

Unity

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31
Q

According to the __________________ all the revenues and all the expenses have to be included in the budget with their total amount and split into two categories: revenue and expenses

A

Universality

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32
Q

According to the _____________ principle the amounts put in the budget should reflect the economic situation in the country

A

Budget reality

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33
Q

According to the _________ principle the revenue should equal the expenses

A

Equilibrium

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34
Q

According to the ____________ principle the revenue should not be linked with expenses

A

Non assignment

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35
Q

According to the _______________ principle revenues have to be classified according to the source and expenses have to be classified by a strict classification

A

Specialization

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36
Q

According to the principle of _______________ the budget had to be made available in all the stages of the drafting and also after its approval

A

Transparency/Publicity

37
Q

According to the ________________ principle the budget has to include revenues or expenses in the local currency

A

Units of account

38
Q

The budgeting process in Romania has ______ steps

A

8

39
Q

The 9% VAT reduced rate applies to:

A 
Food and non-alcoholic beverages
Human and veterinarian drugs
Accommodation in hotels and bed&breakfasts 
Orthopedic products 
Draft beer
40
Q

The 5% reduced VAT rate applies to:

A

Cultural activities e.g. tickets to museums, concerts etc.
Books and magazines not destined for advertising
Property bought/sold to be used in social policy related issues: hospitals, elderly homes
Houses and apartments in certain conditions

41
Q

To be taxed with a 5% VAT rate property has to meet the following criteria:

A

For apartments: smaller than 120 m2 and total price under 450.000 lei
For houses: smaller than 250 m2 and total price under 450.000 lei
& the buyers did not previously benefit from a 5% reduced VAT rate
Or
Is bought/sold to be used in social policy related issues

42
Q

The sale of an apartment will be taxed with 5% if

A

Is smaller than 120 m2 and has a total price under 450.000 lei

43
Q

The sale of a house will be taxed with 5% if

A

It’s smaller than 250 m2 including the garden and has a total price under 450.000 lei

44
Q

Net salary is equal to

A

NS= GS - SSC - PIT - SP

Net Salary = Gross Salary - Social Security Contributions - Personal Income Tax - Special Payments

ND = 0,585 x GS + 10% x PD (-10% MT) - SP

45
Q

Personal Income Tax PIT is equal to

A

10% x Taxable Salary

46
Q

Taxable salary is equal to

A

GS - SSC - PD/SP + MT

Gross Salary - Social Security Contributions - Personal Deductions/Special Payments + Meal Tickets

47
Q

Child allowance can be in the maximum amount of

A

390 (130x3)

48
Q

Special payments consist of

A

Private Healthcare, Private Pension, Workers Union Contribution

49
Q

Private Pension and Private Healthcare can be deducted up to

A

150 lei / month each

50
Q

Personal deductions consist of

A

Child allowance of 130 lei per child for up to 3 children => 390
and
Fixed amounts up to 3100 lei starting from the minimum salary of 1900 (510)

51
Q

Social Security Contributions SSC are equal to

A

35% x Gross Salary

52
Q

Total Salary Expenditure is equal to

A

2,25% x Gross Salary + Gross Salary + Meal Tickets

53
Q

The elements of tax are

A

Subject, supporter, object, measurement unit, payment date, tax rate

54
Q

Tax rate can be

A

Flat, progressive and regressive

55
Q

A progressive tax rate

A

Increases as the object of the tax increases

56
Q

A regressive tax rate

A

Decreases as the object of the tax (income) increases e.g. when there is a cap on the maximum amount paid for healthcare contributions

57
Q

A tax is

A

A mandatory contribution to the state for which you should not expect any counter performance in return

58
Q

Taxes differ from

A

Contributions for which you receive a counter performance

59
Q

Tax on interest from bank deposits and half of tax from dividends from investments

A

Is a withholding tax

60
Q

The formula for compound interest is

A

Sn=S0x(1+r)^n

61
Q

The formula for simple interest is

A

Sn=S0 x (1+n x r)

62
Q

Tax on dividends is equal to

A

5%

63
Q

Tax on rental income is

A

10%

64
Q

Rental Income is equal to

A

Total revenue - tax
Tax = 10% x taxable revenue
Taxable revenue = total revenue - 40% deductible expenses

65
Q

It is non-taxable revenue

A

Revenue which has already been taxed (dividends, interest)
Revenue received from the state
Adjustment values

66
Q

It is a nondeductible expense

A

Fines and sponshorships

67
Q

Partly deductible expenses are

A

Expenses with food 2% of Gross Income
50% of expenses with fuel for vehicles
5% of the Gross Salary for social expenses

68
Q

A company will pay a CIT

A

If they have shareholders equity of at least 45.000 lei and at least 2 employees (not compulsory)
And
If it has a turnover that exceeds 1 mil € (compulsory)

69
Q

Principles of VAT

A
  1. VAT is not a cost for the taxable person
  2. VAT always appears at the place of operation because it is a national tax
  3. VAT is a cost only for the final consumer
70
Q

Collected VAT

A

Is VAT collected from a sale

71
Q

Deductible VAT is

A

VAT that a company pay for a purchase

72
Q

When Collected VAT is > than deductible VAT we have

A

Payable VAT

73
Q

When collected VAT is < than deductible VAT we have

A

Receivable VAT

74
Q

In which cases can we have receivable VAT?

A

If the company sells books or if it exports goods

75
Q

Companies can choose not to register for VAT if

A

They have a turnover of less than 65.000 € (300.000 lei)

76
Q

Questions that should be answered when deciding if you want to register for VAT

A
  1. Who is my customer?

2. Do most of my expenses include VAT?

77
Q

How can you know if a company is registered for VAT?

A

The tax identification CUI/CIF will include letters as well not only digits e.d. RO88888888

78
Q

If you exceed a turnover of _______________ you will have to register for VAT ______________

A

65.000€/ 300.000 lei, next month

79
Q

In Romania the budget initiative is assigned to _____________

A

The Government

80
Q

Who is responsible for drafting the budget

A

The Ministry of Public Finance

81
Q

The budget is executed by

A

The Ministry of Public Finance

82
Q

When we make budgeting investments decisions we use ____________

A

The Cost-Benefit Matrix, the Top Matrix and the Financing Matrix

83
Q

An investment can generate impact as far as _______________ and ________________ are concerned

A

Quality of life, generating revenue

84
Q

When we decide which investment we should finance we should look at

A

How much money we spend for one impact point

85
Q

The following phases of the budgetary process in Romania are not public

A
  1. Budget initiative
  2. Drafting of the budget
  3. Agreement of the Government
86
Q

The Budget will go into force

A

On January 1st/ when it is published in the official gazette

87
Q

Definition of the budget

A

A forecasting document which includes for a defined period the revenues and expenses

88
Q

The consolidated budget includes

A 
The state budget
The local budgets
Social security budget
Budget for independent public authorities  
Special budgets

Public Finance (1 decks)

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