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Companies with a turnover of less than one million euros will pay a tax of 1% of the turnover, not 16% of the tax on profit


By Andra Beltz

 

The Finance Minister Ionuţ Mişa said on Thursday that the Government will introduce a 1% turnover tax on companies with a turnover below EUR 1,000,000.
The changes in the field of micro-enterprise income tax lead to a negative budgetary impact on corporate income tax, together with a positive budgetary impact on income from micro-enterprise income tax, is shown in the substantiation note to the draft amendment to the Fiscal Code published by Ministry of Public Finance (MFP).
"For 450,000 companies with a turnover of less than 1,000,000 euros, a tax of only 1% of turnover will be imposed, compared with 16% of the profit tax currently payable", he said Minister.
He assured that the right firms will no longer suffer because of the evaders.
The changes of the Fiscal Code will also include firms that earn revenue from consultancy and management, against the current condition of not applying this scheme if they make more than 20% of these types of income.
The changes to this normative act also include the inclusion of non-taxable legal entities (legal entities in the insurance, capital market, banking, gambling and natural resource extraction) according to a press release from the Executive.
"The measure is beneficial to the business environment in terms of lowering the tax burden and reducing the costs of tax calculation and administration," the press release said.
Another change to the Fiscal Code states that sanctioning an economic agent with a denial of the right to deduct VAT is possible only if there is evidence that he has clear information about the activity of the tax evaders with whom he entered into commercial relations.

 

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