Romania plans to extend tax exemption on reinvested profit

Companies that reinvest their profit will be exempted from paying taxes on their profit for an undetermined period. Finance Minister Anca Dragu said that the ministry would approve in one to two weeks the measure that extends this facility indefinitely. “We wish to extend it indefinitely to bring fiscal predictability,” she explained. “We thus offer the taxpayers that invest in assets such as technological equipment, computers, peripheral equipment, and software, a continuity in their economic activity.” Dragu said that small and medium-sized companies represent 90% of the companies in Romania, and are significant taxpayers for the state budget. The minister also announced that the amounts spent by companies with the training of young people would also be tax deductible. Companies will be able to deduct not only the expenses related to trainings and the remuneration of teachers, but also the ones related to acquiring necessary equipment for professional training. “We want young people to have easier access to applied training, and employers to be more motivated to invest in the training of young people,” Dragu said. editor@romania-insider.com