Ministry of Finance will extend the exemption from tax on reinvested profit that expires at the end of this year, announced Finance Minister Anca Dragu.

“We will extend the tax relief for reinvested profit. This facility expires later this year and it will be extended for those who reinvest profits,” said Dragu.

Tax exemption on reinvested profit entered into force on 1 July 2014 and was planned to apply for a year and a half. Businesses are fully exempt from tax on profits reinvested in technological equipment, such as machinery, installation and equipments.

Finance Minister also said that there are on preparation “simplifications for businesses” on taxation, and a packet aimed at reducing tax evasion.

“We are preparing simplifications for businesses and we prepare a package to reduce tax evasion, which is good news for business, because we offer equal conditions for all market participants. For businesses the fiscal predictability is very important. That is why the major taxes will not be changed. In fact, generally speaking taxation will not be changed (…) But we do prepare some improvement, some simplifications,” Anca Dragu said.