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Lump Sum Tax To Replace Minimum Tax In 2H – Official

The lump sum tax will replace the minimum tax in the second half of the year and will be applied to services subject to tax evasion, such as restaurants and beauty saloons, Friday said Mihai Gogancea-Vatasoiu, vice-president of Romania’s tax administration agency ANAF.
Lump Sum Tax To Replace Minimum Tax In 2H - Official
15 ian. 2010, 14:10, English

Gogancea-Vatasoiu said that the minimum tax was based on the data showing that between 2005 and 2007, 242,000 of the total 617,000 registered companies declared they reported losses.

He also said that most of the companies that suspended their operations last year, after the introduction of the minimum tax, had no activity since their foundation.

According to Trade Registry data, over 133,000 companies suspended their operations last year, over 11-fold higher on the year.

In her turn, state secretary in the Economy Ministry Maria Parcalabescu said that the minimum tax was aimed at revealing the grey economy.

Romanian Prime Minister Emil Boc on Friday asked the Finance Ministry to have the lump sum tax clarified by February, mentioning the government has pledged to eliminate the current minimum tax levied on companies.

Authorities have already drawn up a list of 26 services proposed for lump sum tax collection, which will be analyzed starting with next week.

According to the list obtained by MEDIAFAX, the services proposed for lump sum tax are hotels and similar accommodation units, trailer parks, camps, restaurants, catering services, other food services, bars, travel agencies, tour-operators, fitness centers, fairs, amusement parks, computer and home appliances repair services and funeral homes, among others.

Since May 2009, Romania applies a minimum tax based on companies’ reported revenue. The companies that report profit still pay a 16% profit tax, but no lower than the minimum level.