Alex Milcev, tax & law services leader at EY Romania, the professional services firm, says that Romania is an attractive tax jurisdiction but the frequent announcements and withdrawals of certain fiscal changes unnerve the business environment.
“So Romania is an attractive tax jurisdiction. But investors in Romania mostly appreciate stability and predictability. In the past six months, the government has tried and proposed, then withdrawn proposals for new taxes. The transfer of obligations to pay social contributions from the employer to the employee, the split VAT payment proposal and more,” said Milcev in the first day of the Foreign Investors Summit, the 3-day event organized by Business Review.
The EY Romania leader went on to say that Romania’s flat corporate tax rate of 16 percent is attractive compared to neighboring countries. Milcev underlined the fact that Romania has one of the best networks in the world on bilateral taxation agreements.
“It means investors coming from foreign countries have the framework to make their investors comfortable in Romania and avoid double taxation,” said Milcev.