The Romanian Senate adopted today, February 2, the legislative proposal to simplify the taxation of investors in the capital market. Of the 120 senators present, 118 voted in favor, one abstention and one vote against. The legislative proposal will go to the Chamber of Deputies, the decision-making forum.
‘We welcome the decision of the Romanian Senate to adopt, with a vast majority, this legislative project that comes in support of the capital market and investors. Today's vote is a confirmation of the usefulness of this approach and its relevance for all market players. We strongly believe that by finally adopting and applying the provisions of this legislative proposal, we will be able to encourage the population to be more present in the capital market, thus facilitating the access of Romanian companies to financing. This law brings benefits to everyone and, ultimately, to the Romanian economy. We look forward to the debates in the Chamber of Deputies and we continue to support this legislative proposal’, said Adrian Tanase, CEO of the Bucharest Stock Exchange.
The bill provides for the withholding tax on capital gains for individual investors to be retained at source, with two tax levels, i.e. 1% for holdings over one year and 3% for holdings of less than one year, while losses won’t be compensated. The obligation to calculate, withhold at source, declare and pay the tax will fall on the intermediaries and fund managers. The legislative proposal on amending and supplementing Law no. 227/2015 on the Fiscal Code, which includes simplifying the taxation of capital market investors, was registered in the Senate for debate on October 13, 2021. The initiators of the legislative project are PNL deputies Sebastian Burduja, Gabriela Horga, George Tuta and USR senator Claudiu Muresan, the project being supported by the Bucharest Stock Exchange, the Financial Supervisory Authority, the Association of the Fund Administrators in Romania, the Romanian Association of Banks and the Brokers Association.