Government eliminates minimum tax, announces plan to stimulate the business environment

Prime Minister Emil Boc announced on Wednesday a series of measures that the Governmnet will implement “in order to stimulate the local business environment”. This includes eliminating the minimum tax starting October 1, lowering the interest charged on the late payment of state receivables to 0.04 percent per day, from 0.05 percent and changing the conditions under which companies that invest and create jobs can receive state aid.

The minimum tax will be replaced with the tax on profit. „For the third quarter, companies will pay the minimum tax on the October 25, and starting February 25 they will pay the tax on profit for the fourth quarter of 2010”, explained Finance Minister Gheorghe Ialomitianu.

Ialomitianu announced that fiscal authorities will suspend foreclosure process in the case of companies which are owed money from the budget, or which can recoup VAT. Also, the state’s and companies’ debts to each other will be balanced automatically, not on request, as the current legislation stipulates.

The measures were approved through an emergency ordinance adopted on Wednesday by the Government.

 Simona Bazavan

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