OREANDA-NEWS. October 30, 2009. This was announced by the Deputy Minister of Finance Viorel Dandara during the “round table" in IDIS Viitorul. The deputy minister noted that the Ministry of Finance is going to introduce the income tax after the compromise between business and government.

In this regard, Viorel Dandara said that the independent experts, the Tax Inspection, as well as the experts of the Ministry of Finance will present a study on the results and impact of abolition of the zero rate on the reinvested profit. In the result of consideration of these reports the decision will be taken.

According to Dandara, even if the tax will be reintroduced in 2010, it will be paid by economic agents in 2011, and those who will not receive profit, will not be affected by this decision. At the same time, the deputy minister stressed that is necessary to give clear definition of reinvested profit. Touching upon possibility of increasing VAT, the deputy minister said that it would be wrong, although in many countries, even in times of crisis the rates of VAT and excise duties are revised. Viorel Dandara also noted that it is important to improve tax administration, which would increase revenue.

The independent experts, the representatives of the producers, foreign investors and tax inspectors, participating in the roundtable, noted that a zero rate on reinvested profit should not be cancelled automatically. It is necessary to study goals and results of reintroduction of the tax on reinvested profit. The experts also noted necessity to study positive results of introduction of the zero rate and the fact that many small and medium-sized businesses has come out of shadow and began to declare their real income.

Thus, the tax base has increased. At the same time, it was noted that the introduction of the zero rate on reinvested profit did not increase the investments as the foreign investors are interested in the size of the income tax in the last turn. In conclusion, the participants of the "round table" came to the conclusion that decision on the zero rate on reinvested profit should be taken only after consultations with the business community.