The Romanian business community has raised objections to proposed amendments to the Commercial Companies Law included in the government’s second reform package, warning the measures could discourage major investments, Economedia.ro reported. The concerns were voiced during consultations between representatives of Romanian Business Leaders (RBL) and finance minister Alexandru Nazare.
The RBL delegation welcomed the planned elimination of the minimum turnover tax (IMCA) but criticised a provision limiting shareholders’ ability to grant loans to companies with negative equity. Under the draft, such loans would need to be capitalised, effectively converting them into equity contributions.
Business leaders argued the measure would create distortions for companies and investment funds that have already committed, or plan to commit, hundreds of millions of euros in Romania, including through the EU-funded National Recovery and Resilience Plan (PNRR). They pointed out that companies in sectors such as IT, real estate, and energy often operate for several years with negative equity and are financed mainly through convertible shareholder loans.
“In the short and medium term, the implementation of such legal provisions will significantly discourage investments in Romania and the consolidation of private capital,” RBL warned.
The organisation also objected to restrictions on intra-group service expenses, which are included in the same reform package. RBL argued the proposal is incompatible with OECD principles and diverges from EU practice, where a new directive on transfer pricing is being prepared.
Instead of limiting deductibility, RBL recommended strengthening the National Agency for Fiscal Administration’s (ANAF) capacity to carry out transfer pricing audits.
iulian@romania-insider.com
(Photo source: Natanael Alfredo/Dreamstime.com)
Leave a Reply