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February 8, 2023

AmCham: Collection of taxes will increase after ANAF restructuring

The restructuring of the National Agency for Fiscal Administration (ANAF) can lead to an increase of the collection rate of taxes and dues by 5-6 pc of the GDP, like it happened in Bulgaria, from 31-32 pc of the GDP now, but the indicator would still remain under the EU average of the EU. “Romania now has a collection rate of 31-32 pc of the GDP, Bulgaria is heading towards 35 pc, while the European average stands somewhere at 39-40 pc. After the reform of the Romanian system, we hope to reach a level similar to Bulgaria and to get close to the level of the European Union,” Mihaela Mitroi, President of the AmCham Romania Tax Committee said yesterday.She explained that Poland, too, unfolds such a project of modernisation, partly financed by the EU with non-reimbursable funds of about EUR 70 M. Still being implemented, the programme already led to an increase of the collection rate by 1-2 pc of the GDP. “We hope our country, too, will obtain a financing from the World Bank soon (…). We must simplify to maximum the reporting system used by taxpayers, by enforcing electronic reporting systems, respectively to get closer to the online environment,” Mitroi mentioned. She explained that, although the penetration rate of the internet is small in rural areas, large towns should not be deprived of this IT system, especially as in rural zones the taxation rate is rather low. “ANAF should move closer to the citizen, but it should do it online,” Mihaela Mitroi considers.ANAF modernization is even more important as such an achievement is directly linked to increasing the collection rate of budgetary revenues, she also stated. Moving to another topic, AmCham Romania has signalled the fact that increasing the fiscal deductibility for investments in research & development from 20% to 50% as provided by the Fiscal Code following its amendment through GO 8/2013 has the potential to stimulate investments in R&D. In AmCham’s opinion, investments in R&D represent an important pillar for increasing economic competitiveness of a country.

VAT at invoice cash in could have a negative impact

AmCham Romania considers that introducing the measure of VAT at invoice cash-in could have a negative impact both on smaller companies that are subject to this regime, and on the commercial activity of lager companies. The impact of such measure will reflect at the level of large companies in an increased bureaucratic burden as they will be in the situation to simultaneously maintain double accounting systems for VAT – one for deducting VAT at invoicing date for contributors not subject to VAT at invoice cash-in and one for deducting VAT at invoice cash-in for contributors subject to this regime. AmCham recommends that this should be an optional system as it is implemented in other EU member states that have such a system in place, said Dan Schwartz, member of the Fiscal Committee of AmCham Romania.Also, AmCham Romania welcomes the current initiative of the Ministry of Finance to rewrite the Fiscal Code and the Fiscal Procedural Code and has expressed its member’s availability to provide its members expertise to support the project of an equitable rewriting of the Romanian fiscal legislation. The AmCham Tax Committee has set up dedicated task forces through which technical recommendation will be provided to the authorities in charge.


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