Romanian FinMin: Banks use fiscal optimization to avoid profit tax

Thirty-one of the 46 banks in Romania have recorded losses and only 15 banks have paid profit tax in the last five years, said the finance minister Ionut Misa yesterday, quoted by Hotnews.ro. He said that banks use “fiscal optimization operations” to avoid declaring a profit. For example, local banks take loans from parent banks at interest rates of 19%. They later place the loans on the Romanian market at lower interest rates, the minister said. “You don’t need studies, it’s obvious you’ll record a loss,” Misa added. The minister said that he couldn’t name the banks that avoided paying the profit tax this way, due to the fiscal secrecy. The Finance Ministry has begun sanctioning these practices, and each bank will need to pay profit tax in Romania, Misa added. Which were the most profitable banks in Romania in 2016? editor@romania-insider.com