stirile imobiliare
The former minister’s statements to Mediafax come in the context in which financial analysts have stated that the state budget could be supplemented if a special tax were introduced on advertising revenues of large digital platforms.
„Today, we have a profit tax in Romania of 16%. There is a European directive that says that in the countries where the activity is carried out, companies with a turnover of over 750 million euros can be taxed at up to 15%. Here, in Romania, there is a certain contradiction. We have 16%; this means that we have to make a derogation, so to amend the tax code and provide for such a possibility of variation of the profit tax or a progressive tax, an approach of this kind”, declares Teodorovici.
He emphasizes, however, that in terms of measures to reduce the budget deficit, politicians „are only focused on cutting and not on identifying solutions”.
„We must grant them (large companies, editor’s note) a favorable or better regime than the states in which they are now, today, located. In Romania, I would have reduced the corporate income tax in the area of companies from 16%, as it is today, to 10%. I say this also because we have neighbors, look at Bulgaria, which has a 10% corporate income tax, and then we must also look at the possible competition of other states that are trying to attract investors from those states before us”, the former minister also specifies.
In his opinion, „when you grow, you attract investment in Romania, you increase the tax base, you practically recover the reduction from the first phase and after that you will have more for the state budget collected from corporate income tax”.
„(This strategy, ed.) would allow me, as a state, to do an analysis at the European level with the large companies that fall under that provision of the European directive and to have a discussion, one on one, to first make some flexibility in the tax code in order to have such legal possibilities to bring the major companies to Romania and then, on a case-by-case basis, we would discuss with each one, for example, if it was Ireland, which offers Google or other large companies, let’s say that there was a 14% profit tax. We, Romania, already having 10%, could go up above that 10% flat in Romania, but very good for that company”, explains Teodorovici.
He emphasizes that when „that company left Ireland for Romania, I was also collecting more in this area and added to what I would have collected in addition as a result of the increase in the taxable mass, I already had a very large addition to the budget from the corporate tax and of course, the activities of that company in Romania and many, many other benefits”.
The state budget could be supplemented if a special tax of 10% were introduced on the advertising revenues of large digital platforms, such as Facebook, Google and TikTok, companies that currently report minimal revenues in Romania or, sometimes, none at all, according to information provided on Thursday by analysts of Ziarul Financiar. A similar approach is in the legislative phase in Germany, benefiting from significant public support.
Articolul Teodorovici: We must grant big tech companies a better regime than their countries apare prima dată în Mediafax.
Mediafax
“We must grant big tech companies a favorable or better regime than the countries in which they are now, today, located,” said former Minister of Economy and Finance, Eugen Teodorovici, on Friday.
Articolul Teodorovici: We must grant big tech companies a better regime than their countries apare prima dată în Mediafax.Read MoreMediafax
