AmCham, FIC make new raft of tax recommendations

Business advocacy groups Amcham Romania and the Foreign Investors’ Council (FIC) submitted recommendations to the Ministry of Finance regarding tax initiatives in various sectors such as oil and gas and healthcare.

The associations issued opinions based on the fiscal measures included in the Romania’s Letter of Intent with the IMF or the tax initiatives proposed by the government.

“We call for an open, transparent dialogue, prior to adopting new legislation, to allow all relevant stakeholders to efficiently contribute to adopting the most adequate fiscal measures which will lead to a stable and modern fiscal system and to an accelerated economic development of Romania,” said Valeriu Nistor, president of AmCham Romania.

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Businesses are calling for a reduction of local building tax for legal entities by reducing the variation limits of the tax and by reviewing the calculation method of the taxation base so as to reflect the building type and the market fluctuations, according to Daniela Nemoianu, chair of Amcham Romania’s Taxation Committee.

In the oil and gas sector, the associations are pushing for a “stable and competitive” royalties system that can be applied during the entire duration of a concession contract, suggested Mihai Bogza, FIC president.

Serban Toader, co-chair of FIC’s Taxation Committee, stated his opinion on the collection of social security tax on income from rents and the expansion of the taxpayer’s base for the pensions fund.

“Any attempt to expand the taxpayers ‘base needs to be correlated with the introduction of the new minimum package of medical services and also be aligned with the capping of the calculation base up to three average gross wages, and not five, as the law currently provides.”

AmCham Romania and FIC submitted a series of recommendations regarding the claw back tax mechanism applied to the drugs producers and the development of the private healthcare services market as part of a wider debate on Romania’s healthcare reform.

“Supporting the development of the private health insurance systems and of private medical services must be one of the viable solutions for addressing the current issues of an underfinanced health system in Romania,” Daniel Anghel, co-chair of FIC’s Taxation Committee.

The advocacy group stated they submitted tax recommendations in the context of the process of rewriting of the Fiscal Code and the Fiscal Procedural Code.

Ovidiu Posirca