In October-November 2021, AmCham Romania conducted a new edition of the fiscal policy survey to assess the perception of member companies regarding the main fiscal policy measures and how they affect investment decisions and business development in Romania.
The conclusions of this edition are in line with the recommendations AmCham advances regarding this central topic for the organization's agenda and capture key issues related to the current fiscal context.
The 5 most appreciated fiscal measures that make Romania attractive for investors are:
Regarding the shortcomings of the tax legislation, most of the answers indicate problems related to the predictability of the legislative process in the area of taxation, unitary interpretation of the legislation or lack of correlation between the tax legislation and other legislation governing the same field.
In this context, AmCham emphasizes the need for and the importance of a coherent decision-making process, based on real consultations and comprehensive impact assessments in adopting quality, clear and enforceable public policies.
Among the main shortcomings of the tax administration, which is a barrier to additional investment and the business environment in general, the survey reveals the need to improve the relationship between taxpayers and tax authorities, the still low level of digitization, the complex compliance process or insufficient time allocated for the implementation of new legislative provisions.
"Fiscal policy is a central pillar of a country's competitiveness mix, and Romania must not allow for this to be an impediment for economic attractiveness and existing investors. On the contrary, it must be a tool for accessing the unique opportunities that Romania has on the horizon in the coming period. The fact that 95% of respondents indicate the lack of transparency and predictability among the shortcomings confirms that what we ask on behalf of the business community are not just concepts, but have a direct impact on investment decisions," said Ionuț Simion, President of AmCham Romania.
“The companies’ preoccupation to have a clear, predictable legislative framework and modern tools to facilitate compliance is obvious and is good news. Adhering to the principles of stability and predictability is more important than ever, especially in the context of the recent months turmoil and contradictory statements that have generated a wave of uncertainty", said Alexander Milcev, member of the Board of AmCham Romania and Co-Chair of the AmCham Romania Tax Committee.
Regarding the benefits of the tax incentive for the IT industry, Ionuț Sas, AmCham Vice-President, stated: “We reiterate the need for each fiscal measure to always be analyzed in the context of its overall economic impact, of the specific challenges of the industry it addresses, as well as related to its contribution to the country’s economic competitiveness. From this perspective, the IT industry has proven to be of strategic importance for Romania and continues to be, especially in view of the digital transition assumed by Romania through PNRR. Taxpayers’ legitimate expectation is for a fair return from the state in exchange for paid taxes, in the form of investments in infrastructure, health, education and in other critical systems which will increase the quality of life, a determining factor for retention of IT specialists in the country. "
Among the major macroeconomic risks wreaking Romania’s budgetary sustainability, AmCham underscored the acceleration of inflation and the risk of an inflationary spiral, deepening sovereign debt, high dependence on energy imports, negative demographic developments and the impact and management of the pandemic.
"Romania's macroeconomic situation requires responsible and sustainable budgeting, and we emphasize the importance of rigorous revenue planning before advancing expenditures for which there are no budgetary sources. In order to improve budget revenues, we believe that it’s high time for a paradigm shift in the relationship between the state and taxpayers, in which the state relates to the taxpayers as customers”, said Cristian Sporiș, AmCham Vice President.
With regard to all of the above, AmCham Romania remains open for transparent dialogue and consultation with the authorities involved.