Study: Tax burden in Romania, 24% higher than average rate of major emerging BRIC economies

Romania has a tax burden of 29% of the Gross Domestic Product (GDP), which is 24% higher than the average rate of the major emerging BRIC economies (21.8%), according to a study by UHY, the international network of accounting and tax consultancy firms. Also, the taxes imposed by the Romanian government are higher than the global average (28.2%), the same study showed, according to local Startupcafe.ro. “Economies like Romania need to research and identify more ways to reduce the tax burden on companies. Otherwise, they will be affected by the greater competition of more dynamic emerging countries when it comes to attracting foreign companies,” said Camelia Dobre, managing partner UHY Audit CD. “It is proven that lowering taxes on individuals and businesses could help economies boost growth and create incentives, especially for larger investors and companies with a global activity.” UHY analyzed 34 countries around the world, calculating what percentage of that country’s GDP is taken by the government in tax. Romania ranked 17th in the study while Denmark topped the ranking, with its government’s tax take representing 53.5% of total GDP. The U.S. collects taxes that account for 22% of GDP while Ireland is the only country in the studied Eurozone where the taxes imposed by the government are below the global average. Overall, European economies dominate the UHY ranking, having the highest taxes imposed. On average, European countries have a tax burden of 43.3% of GDP, more than 50% higher than the global average (28.2%), according to the study. Romanian companies may put investments on hold due to fiscal uncertainties Irina Marica, irina.marica@romania-insider.com