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How should companies build 2011 budgets? Flat tax, VAT and lump sum tax, uncertain

Autor: Mihaela Claudia Medrega

15.10.2010, 11:04 12

There is nothing certain about the 2011 taxation system,considering there are pressures for the flat tax to be cut to 12%or even 10%, VAT is not sure to be kept at 24%, and theintroduction of the lump-sum tax has not been settled, so thatbusinesspeople do not have a clear direction to build their 2011budgets on.
So far, none of the countries that adopted the flat tax has givenit up, with pressures pointing to a lower tax so as to keep thecompetitive edge.
As regards VAT, raised to 24% starting July, not even themedium-term fiscal strategy specifies whether this level will bemaintained or not.
About the idea related to the introduction of a new lump sum taxstarting next year to replace the minimum tax, the prime minister'sadvisor says we should not hurry.
This year, the frequent modifications of the fiscal code havedisturbed the business environment, with domestic companies andinvestors finding it hard to adjust to the new rules.

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