The Ministry of Public Finance (MFP) will sanction in one to two weeks the indefinite expansion of tax exempting the reinvested profits, Minister Anca Dragu announced on Tuesday during an event organized by the National Council of Private Small and Medium sized Enterprises in Romania (CNIPMMR).
“We already have a consistent package that we have discussed and that we will sanction in a week or two by which we want to extend this facility, namely the tax exemption of reinvested profits. We want to extend it indefinitely to bring along this tax predictability so that you (the entrepreneurs – our note) know that next year and in 2017, 2018, 2019 will benefit from this feature and you can make a business plan having as input this information on taxation in Romania. Thus we offer continuity in economic activity to the taxpayers who invest in assets such as technological equipment, computers and peripherals software,” Dragu said.
According to the Finance Minister, SMEs represent 90% of the companies in Romania and they are significant contributors to the state budget.
Tax exemption of reinvested profit is valid until the end of this year. Companies are fully exempt from tax on reinvested profits in technological equipment or machinery and equipment.