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Lump-Sum Tax Aims At Fighting Against Tax Evasion – Romanian PM

The lump-sum tax is aimed at fighting tax evasion, and not at increasing taxation, Romanian Prime Minister Emil Boc said Tuesday, adding that its applicability methods will be established this week, jointly with the Tax Code changes.
Lump-Sum Tax Aims At Fighting Against Tax Evasion - Romanian PM
07 apr. 2009, 17:15, English

He said the Finance Ministry is looking for solution to fight against tax evasion, which is rather high in Romania.
 
Romanian hotels, restaurants, commerce or real estate companies will have to pay an annual profit tax of 0.5% of their recorded revenues if the tax that should be paid to the state is lower than this value, but not less than 6,500 lei (EUR1-RON4.1684), according to an emergency ordinance draft.
 
Micro-plants will also have to pay an annual tax of minimum RON6,500, if the tax that should be paid to the state, of 3% of the revenues, is lower than this value.
 
Companies with less than nine employees and an annual turnover of less than EUR100,000 can choose between a tax worth 3% of their revenues or 16% of their profit.
 
The introduction of the lump-sum tax is demanded as more than one third of the registered companies report losses despite a high turnover, according to the Finance Ministry, which added that 39.2% of the registered companies reported losses despite their cumulated turnover of RON134 billion.