New pro-business measures: The State will cover half of salary expenses for job creators

The State will offer to pay for half of the total value of salary expenses for firms that create a minimum of 20 new workplaces, according to MEDIAFAX.

“For companies that create at least 20 work places, the State will pay half of the total value of salary expenses. We are not talking about reducing taxes or social contribution, we’re talking about half of salary expenses, half of everything that is commonly called a salary”, Ponta explained.

Asked if there will be any kind of limitations on the salaries elligible for the discount, Ponta replied:

“We’re talking about the average national salary. If you pay your employees EUR 20.000, you don’t need a discount”.

Liviu Voinea, Delegate Minister for the Budget, specified that the state will support salary costs for the net salary but also for the afferent taxes, and the scheme will be in effect for 7 years, starting with July 1. The methodology will be designed by April, in order for companies to be able to pre-register until July.

According to the system designed by the Romanian authorities, firms will cover the entire salary cost for new jobs, but they will be able to get a quarterly discount for half of these costs. The reimbursements vie on creating at least 20 new work places.

The Romanian Government also agreed with IMF to reintroduce in July tax breaks for companies that reinvest their profit. The legislative methodology will be implemented by April in order to be ready to be revised at the next IMF visit.

“Our letter of intent and memorandum will include the obligation that for the next round of negotiations, in April, the Government will follow-up with measures and methodology for the tax break to be reintroduced in July”, prime-minister Ponta specified.

These new measures have been agreed upon with the International Monetary Fund delegation, present in Romania until February 5.