Taxation of multinationals: More restrictive rules replace the Minimum Turnover Tax. Romania loses attractiveness despite great need for investments

The minimum turnover tax (IMCA), which has created more problems than it has solved, is set to be eliminated next year. But the news is only apparently good because the authorities want to compensate for this "loss" through a new rule limiting the deductibility of expenses for services contracted from affiliates. In practice, large multinational companies escape the minimum turnover tax, but are subject to even more restrictive rules. Both proposals are found in the draft law that is part of the second fiscal consolidation package, a package that should have targeted only budget expenditures, according to official statements.