Deloitte: Investors' perception on Romania’s tax system worsens

More than half (52%) of the investors who participated in a Deloitte survey this year consider that the tax system in Romania has worsened this year, compared to only 22% of the respondents to a similar survey carried out in 2015. Meanwhile, only 15% of the questioned investors think that the fiscal framework has seen major positive changes this year, down from 32% in 2015. Some 22% of them believe that in 2017 the tax system had a positive evolution with minor changes, compared to 43% in 2015. Deloitte carried out the survey among the participants to its annual conference Taxnology. The event brings together some of the largest investors in Romania. "We see that in 2017 the percentage of those who consider that the tax system had a positive evolution has halved. At the same time, we note that the percentage of those who believe that the legal changes lead to fiscal relaxation or fiscal predictability has diminished," said Dan Badin, Partner-in- Charge Tax and Legal Services Deloitte Romania. According to Deloitte, the deterioration in the perception of the business environment is not necessarily determined by legal changes or tax increases, but by the way in which discussions about tax policies have taken place lately. "We are concerned about the increase of mistrust, as it will ultimately affect the business decisions regarding opening new businesses, expanding or hiring and implicitly affecting the Romanian economic growth that brings wealth for companies and their employees, therefore for the country as a whole," Badin added. Almost half (46%) of the respondents to the Deloitte survey said that the legal changes have a major impact in 2017 with negative effects on their business, versus 30% two years ago. On the other hand, 19% consider in 2017 that the legal changes have a major impact with positive influences on their business, compared to 30% in 2015. When it comes to the way in which the objectives of the legal changes have been achieved, 62% believe in 2017 that the legal changes have simplified the tax calculation and tax compliance, compared to 23% in 2015. Meanwhile, 2% said that the legal changes have led to fiscal relaxation in 2017, compared to 28% two years ago, and 3% believe that the legal changes have reached the objective of predictability of the fiscal system in 2017, down from 13% in 2015. Romanian Government’s recent tax measures generate extra costs for employers Irina Marica, irina.marica@romania-insider.com