AmCham members call for capping, simplifying and consolidating social security contributions. "The uncapping of social contributions led to a huge burden on the investors who wish to attract skilled personnel and pay adequate salaries. Capping all social contributions will diminish labor payments on the black or grey market given a reduced taxation will encourage investments, and will discourage skilled labor emigration,” representative of the chamber.
As shown in a recently-released OECD study, Romania ranks first in the EU in terms of “un-official” labor payment. AmCham also recommends reintroducing the VAT simplification measures as previously stipulated by the Fiscal Code.
"The VAT reverse charge mechanism should be applied, as VAT pre-financing is a real burden for investors. Most EU countries (e.g. Austria, Belgium, Netherlands, Italy, Ireland, Luxembourg) apply the VAT reverse charge mechanism for imports", said the members of the American Chamber.
AmCham’s recommendations also include full deductibility of bad debts to be allowed under the Fiscal Code with no further restrictions, drastic cut in the number of fiscal and para-fiscal taxes, the possibility to off-set taxes, as well as late payment interest paid to the taxpayer in case of delayed VAT reimbursement.
According to AmCham Romania, the organization endorses these measures to support the private sector, and an open dialogue between authorities and representatives of the business community.
The American Chamber of Commerce in Romania (AmCham Romania) is an apolitical, non-profit organization, founded in 1993. AmCham Romania now has more than 300 members – American, international and local businesses, representing investments above 10 billion dollars. AmCham Romania is affiliated to the U.S. Chamber of Commerce and a member of the European Council of the American Chambers of Commerce.
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