Companies to pay annual minimum tax starting May 1

Companies will have to pay an annual minimum tax of 2,200 lei (some 500 euros) in Romania, starting May 1, if they have total annual revenues worth below 52,000 lei and a minimum tax of 43,000 lei (some 10,000 euros) if their total annual revenues exceed 129 million lei, according to a normative act referring to the 2009 budget rectification and the regulation of severeal fiscal-financiar measures.

Companies with total annual revenues between 52,001 and 215,000 lei will have to pay an annual minimum tax of 4,300 lei (some 1,000 euros), with those with revenues between 215,001 and 430,000 lei to pay annual minimum tax worth 6,500 lei (1,500 euros).

In the case of such companies registering total annual revenues between 430,001-4.3 million lei, the minimum tax to be paid will be 8,600 lei (some 2,000 euros), while companies with revenues between 4.3 and 21.5 million lei will have to pay 11,000 lei (2,500 euros), and those registering between 21.5 and 129 million lei will have tax to pay of 22,000 lei (5,000 euros).

Companies that do register profit will continue to pay the 16-percent tax, but with the corresponding amount not to result smaller compared with the minimum amount to be paid in the respective category indicated by the company's annual revenues.

The Romanian Ministry of Public Finance (MFP) discovered that 2,000 of the 617,525 corporate contributors ensured more than 85 percent of the public revenues, in 2007. There were no less than 242,106 companies declaring loss in in Romania in 2007 (39.2 percent of the total number of registered companies), in the context they posted up a total turnover worth 134 billion lei.

Rompres