Romania plans to introduce tax exemption for reinvested profit this year

Romania's Government plans to exempt taxes for reinvested profit starting July 1 this year, and hopes to present all required measures during the International Monetary Fund's next visit to Romania in April. “With the exemption from tax for the reinvested profit we lose 16 percent, but we win 24 percent in VAT for the products that are bought,” explained Prime Minister Victor Ponta. He was however elusive when it came to the drop in social insurances announced for the second half of 2014, saying it is an economic stimulation package. “the idea is to make a package after July 1. One thing has been established, to come up with all the measures and implement them in the second quarter,” the PM added. The Association of Business People in Romania has asked the Government to support tax exemption for reinvested profit and a cut in salary taxes in its negotiations with the IMF. editor@romania-insider.com