Survey: Most Romanian companies expect to pay more taxes in 2024

Most Romanian companies (94%) expect to pay more taxes in 2024, Alex Milcev, head of EY Romania's Fiscal and Legal Assistance department, said Thursday, citing a survey conducted by the company."The first question is whether you expect your company to pay more taxes in 2024. It seems, of course, a question to which everyone should answer 'Yes'. Pretty much everyone answered, that is 94%. But the interesting part is the next question, namely the reasons for these tax increases. And the answers are very interesting. 68% blame the legislation. This is also correct because that is how this legislation was designed, so that we all pay more to the state budget to a greater or lesser extent. But the next criterion, with 36%, is the 'business growth' criterion. That is, the increase in taxes is due to the fact that the business is doing well," said Alex Milcev, at the EY Annual Tax Conference 2024.As a reason for increasing taxes 32% of participants mention the political context and the pre-election period, 32% inflation, which leads to a nominal increase in revenues, 18% the need to align with newly introduced international requirements, and 32% all the reasons listed above.When asked "How do you rate the government's measures to increase taxes in 2023 and 2024?", 37% of participants answered that these were unavoidable and 30% avoidable.When asked "What alternatives do you think would be available to avoid tax increases?", most respondents, 70%, mentioned combating tax evasion.Participants were also asked about increasing the efficiency of the tax system in Romania. Most, 76%, pointed to the digitisation of the National Agency for Tax Administration (ANAF) and the improvement of the level of training of tax inspectors.Participants were also asked about the impact of the new minimum turnover tax (0.5%/1%/2%) on their business in 2024. 48% said it would have no impact, 31% a significant impact, 14% a very significant impact, and 7% an insignificant impact.