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German official: Romania, with 16pct tax, is fiscal haven for Germany
Romania, with a flat income tax of 16 per cent, could be considered a tax haven by Germany, where the maximum taxation level amounts to 42 per cent, the Konrad Adenauer Foundation's Director for Romania and Republic of Moldova, Sven Joachim Irmer told a Tuesday's conference on tax issues.
'In Germany, where the maximum tax is 42 per cent, the fairness of the tax legislation is a topical issue. I am glad to live in a country with a flat tax of 16 per cent. For Germany, Romania could be considered a tax haven,' said Irmer.
The Konrad Adenauer Foundation's representative added that Germany is the most voluminous Tax Code in the world and he wished that Romania did not catch up Germany in terms of the thousands of Tax Code pages.
In response, the president of the Association for Reforming the System of Taxes and Charges, Octavian Radu mentioned that in Romania the VAT stands at 24 per cent, the taxation base is different, and taxes and fees are not paid by all people.
'As an entrepreneur, I am forced to get out of certain businesses because of unfair competition, because the VAT is 24 per cent and not all the people pay [taxes],' said Radu.
He added that 'it is not the tax legislation in Romania that is lagging behind, but the tax administration, which is treating taxpayers differently and thereby unfairly.'