Prima pagină » English » Tax Code Talks Between Romanian Fin Min, Employers, Suspended On Disagreements

Tax Code Talks Between Romanian Fin Min, Employers, Suspended On Disagreements

The talks between Romania’s Finance Ministry and employers' associations representatives on the Tax Code enforcement norms were suspended Monday, after employers withdrew from negotiations because the Government didn't comply with the conditions previously agreed.
Tax Code Talks Between Romanian Fin Min, Employers, Suspended On Disagreements
27 apr. 2009, 14:27, English

"The employers’ association representatives left the talks with the Finance Ministry. We settled there is a reason to introduce the lump sum tax and agreed upon the tax grid provided it is enforced with certain deductions on the expenses for repairing works at vehicles, fuel, VAT at vehicle acquisition. Now, the ministry says this isn’t possible," Florea Parvu, vice-president with the National Council for Small and Medium Sized Private Enterprises in Romania, or CNIPMMR, said Monday.

Also, representatives of the Employers’ Confederation Alliance, of the UGIR-1903 and of the Association of Businesspeople in Romania AOAR left the discussions, accusing the Finance Ministry of lying.

"The enforcement of both the lump sum tax and the deductibility was a lie and a bluff from the Finance Ministry; moreover, they claimed they talked with us about the terms of the agreement with the International Monetary Fund, and in fact nobody told us anything about this issue," Parvu said.

UGIR-1903 vice-president Mihai Pasculescu said in his turn the management representatives had objections towards the fact the lump sum tax will be enforced as of May 1, but for the revenue reported in 2008.

Romanian government recently approved an emergency ordinance under which companies are to pay a minimum yearly tax of RON2,200 (some EUR500), computed based on total revenues.