reinvested profit

The tax exemption on reinvested profit will deprive Romania’s budget of 140 million lei (EUR1- RON4.2143) starting with October, Finance Minister Gheorghe Pogea said Tuesday.

Romania’s Government decision to not tax reinvested profit will be postponed, most likely for next year, as it requires changes in the Tax Code, the minister for small- and medium-sized enterprises Constantin Nita said Wednesday.

Romania’s Government will not exempt this year the tax on reinvested profit, and the fiscal incentive will be introduced in 2010 only for "certain activities," according to the revised version of the Convergence Program, obtained by MEDIAFAX.

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 will approve the tax exemption of the reinvested profit through an emergency ordinance that will amend the Fiscal Code, but the measure will come into force as of January 1, 2010, Finance Minister Gheorghe Pogea said Thursday.