Home Stock exchange Romanian MPs want to simplify taxation for individual stock market investors

Romanian MPs want to simplify taxation for individual stock market investors

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Bucharest Stock Exchange (BVB) individual investors will pay only 3% interest on their capital gains (1% for shares held for more than a year), according to a bill backed by MPs of all the major Romanian parties.

Under current regulations, capital gains tax is set at the “single tax rate” of 10%. Under the bill, investors will not have to pay the taxes themselves (instead, they will be defaulted on their behalf by the brokerage house) and will not have to report their losses.

The bill was drafted by the three Liberal MPs (PNL), Sebastian Burduja, Gabriela Horga and George Tuță and reformist MP Claudiu Mureșan, Economedia.ro reported.

The authors expect Romanians to withdraw at least € 1 billion from the € 30 billion in net bank deposits held by local households, while the other € 1 billion would come from individual foreign investors encouraged through simplified and reduced taxation.

The authors of the bill estimate at some 200 million euros (per year) the additional profits generated by listed companies thanks to the additional funding of 2 billion euros.

This is a very simplistic estimate while the real benefit is double and mentioned in the document drafted by the initiators: cheaper financing available for Romanian companies and a better allocation of resources (with a positive impact on household budgets and their savings options).

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