Romanian Employers: 40,000 Small Cos Sharply Affected By Lump-Sum Tax

Romanian Employers' Organization disagrees with the government's decision to introduce the lump-sum tax, saying that it will sharply affect 40,000 small companies that will be forced to close down or find ways to declare lower revenues.

Employers also say the introduction of the lump-sum tax was decided without consulting them, adding that the companies' productive capacity should be stimulated, not hindered.

Romania's Government approved Saturday the budget revision, which includes the introduction of a minimum yearly tax of RON2,200 (some EUR500), computed based on companies' total revenues.

Under the act, companies that report losses will have to pay a lump-sum tax based on their revenues, while the companies registering a profit will continue to pay the annual flat tax of 16% on their profit, but no less than the minimum limit due to the value of their revenues.

Companies that post total revenues up to RON52,000 have to pay a minimum yearly tax of RON2,200, while companies with revenues between RON52,001 and RON215,000 are to pay RON4,300 minimum tax a year.

The minimum tax will reach up to RON43,000 (EUR10,000) a year for companies that post annual revenues over RON129 million.

Mediafax