Romania To Leave Flat Tax Rate Unchanged At 16% Until 2013

The document doesn’t indicate whether the value added tax rate will be modified over the next three years. In July, the government raised the VAT to 24% from 19% to boost state revenues.

According to the 2011-2013 fiscal strategy, Romania targets annual revenues from the flat tax rate of 3.3% to 3.4% of the gross domestic product. The tax on profit is estimated to bring the state up to 2.1% of GDP by 2013.

The government also pledged to maintain lower VAT rates for a series of goods and services for the next three years and to keep the social security contributions at their current levels.