Senate modifies stock tax

Revenues derived from transactions on the Stock Exchange and subject to taxation will be calculated starting next year by cumulating the gains and losses registered by investors during one year, in line with the law draft on the approval of the Fiscal Code that the Senators passed at the end of last week.

The state used to tax every profitable transaction without considering the fact that investors may incur losses as well. The levied tax will be raised, though, to 16%.

Senators also agreed to do away with the pro rata temporis method for the transition to the 10% tax to be applied this year, with the tax to be applied only for the shares that were purchased after the law came into effect.

The draft on the modification of the Fiscal Code will be discussed by the Chamber of Deputies.

“Starting January 1st, 2006, the tax will no longer be levied per transaction, but for the stock portfolio on the duration of one year. We have completely eliminated the pro rata temporis method, and the 10% tax that is valid this year will only be applied after promulgation of the law”, Varujan Vosganian, chairman of the Senate”s Budget Commission told ZF.

vlad.nicolaescu@zf.ro

iulian.anghel@zf.ro