The Covid-19 pandemic has prompted the authorities to roll out a whole series of support measures for businesses. Among the measures enacted in 2020, tax consolidation, brought by the Law no. 296/2020, was one of the most important, as it allows offsetting the taxable profits of companies in a group against the tax losses of other jointly owned firms of the same Group.
Order no. 1.191 of July 26, 2021, published in the Official Gazette no. 766 of August 6, 2021, provides for the procedure for the setting up and administration of the tax group for profit tax related purposes.
This legislative initiative completes the legislative framework on the regulation of certain aspects related to the functioning of holding companies and aims to incentivize the setting up and development of such structures and foreign investment in Romania.
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