Ionuț Simion (AmCham): Ordinance 114 caused Romania an incalculable image damage

0

All the advantages of Romania disappear when the big multinational companies choose a country, due to the lack of predictability and stability at fiscal level, says Ionuț Simion, the president of the American Chamber of Commerce in Romania (AmCham Romania).

“Ordinance 114 caused Romania an incalculable image damage. This was the big problem that GEO 114 produced, because, essentially, its fiscal impact is one (small e.n.). In the end (the effect) was minimized by all subsequent measures. The decisions (of the multinationals) are taken at global level. Within a group of multinationals there is a very fierce competition between countries. Each of us goes and presents his business case in order to attract investments in this country. We all want it, “said Simion, according to Hotnews.ro.

According to a study carried out among American companies by AmCham Romania, the main tax measures in the current legislation that favor investments and make Romania attractive to investors are:

  1. single tax rate
  2. 5% dividend tax
  3. tax incentives (R&D, reinvested profit, software developers)
  4. adopting EU tax legislation (harmonization with other EU jurisdictions)
  5. holdings legislation
  6. micro regime (the turnover tax).

The main disadvantages of the current tax legislation that constitute a barrier to further investments and affect the general perception about the business environment in Romania:

  1. low attractiveness of tax incentives due to low materiality or practical difficulties
  2. the provisions of GEO 114/2018
  3. Non-timely harmonization of tax legislation with accounting law
  4. CAS and CASS (social contributions) lack of ceiling
  5. lack of fiscal consolidation for corporate income tax
  6. limit the deductibility to the transfer of receivables
Share.

Leave A Reply