The Fiscal Environment for 2005 is designed to attract FDI
Foreign Investors Council, together with other representatives of the business
community and the press, were invited to participate in a Press Conference, during
which Mr. Mihai Tanasescu, Minister of Public Finances, made the surprise announcement
of a significant reduction of the corporate profits tax rate from 25% to 19%,
and other reductions in income and employment tax rates.
The FIC and members of the Cabinet have had numerous meetings in recent years,
and on each occasion, the Government representatives stated that attracting FDI
is absolutely essential for the economic development of Romania.
The FIC welcomes the changes proposed by Minister Tanasescu. It is an important
measure that could have a major and positive impact on the investment decisions
of potential foreign investors in the near future.
During the Press Conference, Mr. Gilbert Wood, the FIC President, stated that
the reduction of corporate profit and employer tax rates in Romania will reestablish
her competitiveness in the region and facilitate increased FDI. Romania has a
well-educated and skilled work force, and by decreasing the social contribution,
the effective low cost of the work force will be maintained and new jobs will
A modern and friendly fiscal regime will improve the business environment and
will send a strong message to the international community that Romania is prepared
to compete with the countries that recently joined the EU.
For further information, please
contact: Ms. Ruxandra Stan
Foreign Investors Council
Telephone: 222 19 31
Fax: 222 19 32
The Foreign Investors Council (FIC) is an association of
the leading foreign investors in Romania. The FIC has 86 members, whose combined
investment in Romania
exceeds 6 billion euros, representing approximately two thirds of Romanias total
foreign investment. The primary objective of the FIC is to foster dialogue between
policy makers and investors in order to improve Romanias business environment
and to assist in Romanias European Union accession process.