The Fiscal Environment for 2005 is designed to attract FDI


The Foreign Investors Council, together with other representatives of the business community and the press, were invited to participate in a Press Conference, during which Mr. Mihai Tanasescu, Minister of Public Finances, made the surprise announcement of a significant reduction of the corporate profits tax rate from 25% to 19%, and other reductions in income and employment tax rates.

The FIC and members of the Cabinet have had numerous meetings in recent years, and on each occasion, the Government representatives stated that attracting FDI is absolutely essential for the economic development of Romania.

The FIC welcomes the changes proposed by Minister Tanasescu. It is an important measure that could have a major and positive impact on the investment decisions of potential foreign investors in the near future.

During the Press Conference, Mr. Gilbert Wood, the FIC President, stated that the reduction of corporate profit and employer tax rates in Romania will reestablish her competitiveness in the region and facilitate increased FDI. Romania has a well-educated and skilled work force, and by decreasing the social contribution, the effective low cost of the work force will be maintained and new jobs will be created.

A modern and friendly fiscal regime will improve the business environment and will send a strong message to the international community that Romania is prepared to compete with the countries that recently joined the EU.


For further information, please contact:
Ms. Ruxandra Stan
Executive Director Foreign Investors Council
Telephone: 222 19 31
Fax: 222 19 32
E-mail: office@fic.ro

The Foreign Investors Council (FIC) is an association of the leading foreign investors in Romania. The FIC has 86 members, whose combined investment in Romania exceeds 6 billion euros, representing approximately two thirds of Romania’s total foreign investment. The primary objective of the FIC is to foster dialogue between policy makers and investors in order to improve Romania’s business environment and to assist in Romania’s European Union accession process.