The law granting new incentives for stimulating private entrepreneurs, the establishment and development of small and medium-sized companies, was passed per separate articles by the Chamber of Deputies yesterday and the final vote is to be cast tomorrow.
The Deputies actually enacted a Government Ordinance they modified during the debate. According to an amendment proposed by the economic policy Commission, the gross profit used by the small and medium-sized companies for investments in amortisable assets in the current fiscal year is not subject to taxation.
This incentive is calculated on a monthly basis and the money reinvested is distributed as the company’s own funding sources.
As for the investments not finalised in a specific year, the profit tax exemption is granted depending on the value of the works completed. Investments made under these circumstances will remain in the patrimony of the small and medium-sized enterprises for at least half their operating duration.
Another facility for the small and medium-sized companies, proposed by the specialised parliamentary committee, is the possibility to quickly amortise certain equipment.
The law stipulates that the acquisitions of machines, industrial equipment and know-how will be faster amortised if a particular SME requests it. Moreover, small and medium-sized companies are exempt from customs duties for this kind of equipment.
This incentive was included in the original variant of the draft, upon a Government initiative. However, Deputies decided that small and medium-sized enterprises must also be exempt from VAT payment for autos and vehicles, except for cars and equipment that they import for developing their own activities.
Small and medium-sized enterprises shall not pay customs duties and VAT for the import of raw material necessary for products aimed at exports.
Furthermore, small and medium-sized enterprises will benefit from a 20-percent cut in the profit tax if they create new jobs. The decision was voted by the Chamber of Deputies, upon the initiative of two representatives of the economic policy Commission.
However, the profit tax cut is applied only for the interval of time spent by the new employees in the company. The normative document adopted yesterday by the Chamber of Deputies is also to be debated by the Senate.