The American Chamber of Commerce in Romania (AmCham) recently submitted an updated set of taxation recommendations to the Romanian authorities. Top of the list is modernization of the tax administration ANAF. AmCham also encourages more financing of research & development and welcomes the ongoing rewriting the Fiscal Code , but expresses concerns over the VAT at invoice cash in measure.
AmCham members view the ANAF modernization project supported by the World Bank as vital for both the authorities and the private sector in Romania. According to AmCham, similar projects in Bulgaria and Poland prove that modernization will have measurable results in an increased collection rate, as well as potentially attracting investment. “It is widely acknowledged that a high collection rate of taxes renders stability and confidence in an economy and efforts towards this goal will be reflected in increased investments in the economy, so needed in the context of reduced capital” said President of the AmCham Romania Tax Committee Mihaela Mitroi.
AmCham deems research and development an important tool in increasing Romania’s competitiveness. Increasing the fiscal deductibility for investments from 20 percent to 50 percent could boost spending on research and development, according to AmCham.
AmCham judges that the government’s new VAT at invoice cash-in measure could hurt businesses large and small. The trade organization warns of increasing bureaucratic obstacles for companies and encourages a voluntary scheme, as found elsewhere in the EU.
Finally, AmCham welcomes the current initiative of the Ministry of Finance to rewrite the Fiscal Code and the Fiscal Procedural Code, as well as offering help and advice to authorities during the process.