FIC: The adoption of the Tax Code is a step forward, issues about the Procedure Code need to be clarified. AOAR head hails the code too

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The adoption of the Tax Code is a step forward in clarifying the tax regime applicable in Romania, but in relation to the Fiscal Procedure Code there are a number of issues to be clarified, said Thursday Daniel Anghel, Vice-president of the Foreign Investors Council (FIC), during a press conference.

“We haven’t filed proposals in the area of tax rates, but on the technical area, in terms of clarifying certain aspects of the two codes. For example, we believe that the Tax Code is a step forward. We’ll see if it’s the same with the Tax Procedure Code, where we have some reservations,” Anghel said.

He argues that although the authorities have adopted the cuts in social security tax by five percentage points in October 2014, the labour taxation and the total tax rate are still high in Romania, and tax collection remains low, only the taxpayers in good faith pay.

“The total tax rate in Romania is around 43.2%. We are above the European average of 41%. And, compared to last year, we have warned that the total tax rate would increase due to the special tax on constructions and due to the excise on fuel. And it was shown that it increased by three percentage points against last year. Bulgaria has a tax rate of 27% – 30%,” said Anghel.

The FIC representative stressed that the fight against tax evasion is very important, but ANAF actions should be directed towards high fiscal risk areas.

Foreign investors require from the authorities predictability, by fewer legislative changes, to be debated during reasonable periods of time with all those interested.

In addition, Steven van Groningen, member of the FIC Board, claims that the body of consultations between unions, employers and the Government, respectively the Economic and Social Council, is not functional, being a politicized body, so that the approval of pieces of legislation by this forum is a mere formality.

 

New tax code, a great step ahead. Further ‘revivals’ are expected, businessmen association head says

 

The approval of the new tax code in its present form is a great progress in terms of business environment, as it leads to boosting local consumption and demand, and, through the tax cuts, we hope to see further “revivals” in business, said on Thursday Florin Pogonaru (photo), the President of the Businessmen Association in Romania (AOAR).

“There are things that have not passed and for which we express our dissatisfaction. For example, the strengthening the Romanian tax groups. We have a crippled law on holdings, but not a law on compensating gains for losses at holdings level,” Pogonaru said.

The normative act stipulates the cut of the standard VAT rate from 24% to 19% by January 1, 2016. Also, according to the Fiscal (tax) Code, the tax on special constructions will be removed in 2016 and the flat tax is set to fall from 16% to 14% from January 1, 2019.

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