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Romania’s Govt OKs Not To Tax Cos’ Reinvested Pft As Of 2Q ’09

Romania’s Government decided not to tax companies’ reinvested profit as of the second quarter of this year, Prime Minister Emil Boc said Monday evening, at the end of his talks with social partners.
Romania’s Govt OKs Not To Tax Cos' Reinvested Pft As Of 2Q ’09
03 feb. 2009, 11:10, English

The government has previously decided to apply this law as of 2010, but the representatives of the National Council for Small and Medium-Sized Enterprises were against this decision and asked the authorities to begin applying it as of this year.

The demand was raised by Ioan Coraci, head of the Employers’ Confederation of the Romanian Industry UGIR-1903, who said that applying the law as of 2010 doesn’t help companies, because many of them will no longer be active to benefit from this fiscal incentive.

The Finance Ministry established that the budgetary impact of not taxing the reinvested profits will rise to 3.44 billion lei (EUR1=RON4.2987), respectively 0.59% of GDP.