On the domestic capital market and investment side, the new Fiscal Code adopted Wednesday by Romanian Parliament, stipulates lower tax rate for dividends at 5 percent and recognizes lending and borrowing of securities, as well as short selling transactions.
“The new provisions of the Fiscal Code and of the Code of Fiscal Procedure give more opportunities for investors. Intermediaries will be able to offer to their clients new types of transactions and fund managers will have a possibility to more effectively manage the assets. However, we, as the whole economy, lose millions of euro of investments because of the lack, for instance, of electronic fiscal registration of foreign investors. This problem must be solved by the public administration. The reduced flows of capital affect negatively the savings of Romanian citizens who already invest on the capital market. We also expect the new regulations on short selling and lending and borrowing of securities to be assorted with the new secondary legislation. This is one of the most urgent problems to be finally solved.” stated Ludwik Sobolewski, CEO of the Bucharest Stock Exchange, a release reads.
According to him, the lower tax rate on dividends increases the attractiveness of the investments for all groups of investors. “However, the regulations important for the market must evolve at a faster pace and come up simultaneously, to strengthen the positive impact. Building a competitive capital market consists not of introducing insulated changes from time to time, but of connecting the dots” BVB official explained.