Vasile Tofan
Prime Minister Vasile Tofan made this statement today to journalists and citizens during a press conference dedicated to the new budget and tax policy framework for 2027.
“I have no illusions that this policy will solve all problems, but it is the first step toward reforming our tax system, after which we will continue our efforts and rewrite the Tax Code,” noted Vasile Tofan.
The “zero” rate on undistributed profits remains
Speaking about corporate income tax, he reported that the measure establishing a zero rate on undistributed profits remains in the new draft budget and tax policy for 2027.
As a reminder, this measure was introduced two years ago, was in effect last year, and was included in the previous draft developed under the leadership of former Finance Minister Andrian Gavriliță. Prime Minister Vasile Tofan emphasized that when companies were able to retain undistributed profits thanks to this measure, investment in development increased.
Therefore, as an incentive to foster the growth of domestic companies and increase their production and export capacity, this measure—previously intended for small businesses—will now apply to companies with a turnover of up to 200 million lei.
At the same time, to prevent capital outflows from businesses, the dividend tax will be increased from 6% to 8%, which clearly signals support for long-term development through capitalization.
“We have a huge trade deficit, and to reduce it, we need to increase exports and stimulate investment,” the prime minister noted. “Companies that export need funds to remain competitive. And those who wish to distribute profits as dividends will have to pay a higher tax.”
