Local business people are reluctant to reinvest their profit, despite the tax facilities they have.

The Romanian authorities have granted the tax exemption for companies that reinvest their profits. They have introduced the measure in the summer of 2014, which still applies until the end of this year.

However, only 0.8% of the profitable companies reinvested their profit in the first six months after the measure had been introduced, reports local Profit.ro. Some 2,365 companies applied for the tax exemption from a total number of 295,000 that declared a profit.

The state grants the tax exemption if the companies reinvest their profit in the purchase of technological equipment, machines, and work equipment. The measure had been previously applied between October 2009 and December 2010.

editor@romania-insider.com