The flat tax rate represents the main measure that favors investments in Romania, while the low attractiveness of fiscal stimuli is in the top shortcomings of the current fiscal legislation, stated, on Monday, the chair of the American Chamber of Commerce in Romania (AmCham Romania), Ionut Simion, during a conference that presented the results of a poll regarding the main measures of fiscal policy.
“In an overwhelming majority, 75 pct of participants believe the flat tax rate is one of the main measures that favor investments and make Romania competitive. Second place, not surprisingly, because among the members of AmCham there are not only multinational companies, but also Romanian companies, a sufficiently high number, the second very appreciated measure is the tax rate on dividends, at 5 pct, which stimulated the capital remaining in Romania. On third place, pretty close, over half of the participants believe that fiscal stimuli are measures that encourage the Romanian business millieu,” Ionut Simion said.
The respondents of the poll also mentioned the harmonization of fiscal legislation with European legislation (58 pct) and the legislation for the holding regime (30.7 pct), in the advantages of fiscal policy chapter.
Other shortcomings mentioned by the responders to the poll are: the lack of timely harmonization of the fiscal legislation with the accounting legislation as well as the lack of caps on social security contributions and social healthcare contributions.
In regards to the measurements recommended in view of improving fiscal legislation, their selection remains in the area of solving noted deficiencies such as: the predictability of the process of adopting fiscal policy measures, 82 pct; fiscal policy transparency and stability – 76 pct, reducing tax evasion through digitalization and other measures to combat evasion – 72 pct; modernizing the National Agency for Fiscal Administration (ANAF) – 61 pct; strategy to stimulate investments with high added value – 50 pct.
AmCham Romania conducted in July and August 2019 a poll amongst the member companies to evaluate their perception regarding the main fiscal policy measures and how they affect investment decisions and running business in Romania. The poll saw the participation of 128 member companies with the organization.