PM Ponta says tax exempt on reinvested profit to be rolled out in July

Newsroom 16/04/2014 | 13:22

Romanian Prime Minister Victor Ponta said the tax exempt on reinvested profit is set to be enforced starting July, based on a draft bill published by the Ministry of Finance, reports Mediafax newswire.

According to the bill, the profit reinvested by companies into equipment such as machines and work installations will be tax exempted. This measure will be applied by December 2015.

“It is an older request of the business environment, which will be finally enforced from July 1,” said PM Ponta, during the signing ceremony regarding the set up for a consulting platform between the government and the Coalition for Romania’s Development.

The exemption is calculated quarterly or annually, as applicable, and the amount of profit that benefits from tax relief will be allocated to the supply of reserves up to the accounting profit at end of the financial year.

The draft bill is currently under debate with representatives of the Coalition for Romania’s Development and will also be discussed by the Economic and Social Council and by the Social Dialogue Commission.

Ioana Petrescu, the minister of finance, told BR in an interview last week that this measure will cost the state budget RON 28 million (EUR 6.2 million) this year, provided it is rolled out in July.

Ovidiu Posirca