Firms in Romania may get back half of the profit tax for paying taxes on time

Companies that pay all their taxes on time may benefit from fiscal incentives, according to a draft bill submitted to the Parliament by a group of liberal MPs, cited by local Profit.ro. They may recover up to 50% of the tax on profit paid to the state budget. The bill’s initiators argue that the new Tax Code and Fiscal Procedure Code include sanctions for companies that are late on paying their tax obligations but don’t encourage voluntary conformation. The draft bill’s motivation says that some 82% of the firms in Romania pay their taxes before the legal deadline even if they have financial difficulties. However, the 18% of the local companies that don’t do this accumulate large debts and end up damaging the state budget. The draft law provides that good taxpayers recover between 30% and 50% of the tax on profits and can use the money to buy equipment, software, to build new facilities, and train their employees. The MPs who made the proposal say that such a measure may increase the voluntary conformation ratio to over 90%. editor@romania-insider.com