Romanian SMEs Want Early Pft Tax Payment Postponed Until 2020

"We propose a different approach for microenterprises, for which early profit tax payment should be postponed until 2020. Microenterprises won't recover enough in the upcoming years to be able to pay early profit taxes," Ana Bontea, a manager with Romania's National Council for Small and Medium-Sized Enterprises, told a news conference Friday.

Representatives of small businesses said reintroducing early profit tax payment in 2012 is inappropriate because access to financing is still scarce and businesses need cash flow.

"Postponing this reintroduction would allow more businesses to get back on their feet after the crisis and would help revive the SME sector," said council president Ovidiu Nicolescu.

Romania's Government decided Wednesday to cancel until 2012 the early payment of tax on profit, although the Finance Ministry had drafted a decree to have the measure cancelled until 2015.

Early profit tax payment was to be introduced at the beginning of the year and firms were supposed to pay their profit tax quarterly. The tax is calculated at a quarter of the profit tax paid in the previous year, indexed to inflation.

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