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Deloitte Survey: Romanian business environment’s perception of tax system evolution worsens
According to a survey conducted by Deloitte Romanian among participants to its annual conference Taxnology, the number of respondents who said they believe the country’s tax system has a positive evolution halved compared to 2016, business-review.eu reads.
The participants, representing some of the largest investors in Romania answered questions similar to those used in 2015, which provided the opportunity to make a comparison of the current answers with those provided two years ago.
Number of those who believe tax system had positive evolution halved
“We see that in 2017 the percentage of those who consider that the tax system had a positive evolution has halved. At the same time, we note that the percentage of those who believe that the legal changes lead to fiscal relaxation or fiscal predictability has diminished,” said Dan Badin, partner-in-charge tax and legal services Deloitte Romania. “In Deloitte’s opinion, the deterioration in the perception of the business environment is not necessarily determined by legal changes or tax increases, but by the way in which discussions about tax policies have taken place lately. We are concerned about the increase of mistrust, as it will ultimately affect the business decisions regarding opening new businesses, expanding or hiring and implicitly affecting the Romanian economic growth that brings wealth for companies and their employees, therefore for the country as a whole,” Badin explained.
Key findings of the survey regarding the evolution of the Romanian tax system in recent years
In 2017, 15 percent of the interviewees said that the tax system had a positive evolution with major changes compared to 32 percent in 2015. Moreover, 22 percent of them believe that in 2017 the tax system had a positive evolution with minor changes compared to 43 percent in 2015. A total of 52 percent believe that the evolution of the tax system was negative this year compared to 22 percent in 2015.
About the impact of the legal changes on their business
A total of 46 percent say that the legal changes have a major impact in 2017 with negative effects on their business versus 30 percent two years ago. 19 percent consider in 2017 that the legal changes have a major impact with positive influences on their business compared to 30 percent two years ago.
About the way in which the objectives of the legal changes have been achieved
A total of 62 percent believe in 2017 that the legal changes have simplified the tax calculation and tax compliance compared to 23 percent in 2015. 2 percent of respondents say that the legal changes have led to fiscal relaxation in 2017 compared to 28 percent in 2015. 3 percent of respondents believe that the legal changes have reached the objective of predictability of the fiscal system in 2017 compared to 13 percent in 2015.