Eastern Europe Tax Lesson
Posted by Heather Edwards on October 9, 2010
In case there is any question left in your mind as to how the American economy will be affected by higher taxes, take a look at how Eastern Europeans are responding to the same in their neck of the woods:
Thousands of Romanian companies are moving their business to neighboring Bulgaria, the Bulgarian National Radio, BNR, informs Saturday.
The reasons cited are the spending cuts and austerity measures imposed in Romania, lower taxes and better conditions for the business in Bulgaria.
In Bulgaria revenue and profit taxes are 10% compared to 16% in Romania. The Value Added Tax (VAT) is also lower…
In addition, it is much easier to establish a company in Bulgaria where one needs less than a week and BGN 2 as initial capital.
It is estimated that nearly 2,500 Romanian companies have already moved to Bulgaria. The Bulgarian Danube city of Ruse sees 2 registrations of Romanian businesses per day.
Cultures are undoubtedly different, but human nature and behavior towards one’s interests is virtually the same around the world.
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