Romanian Govt To Eliminate Minimum Tax As Of Oct 1

Boc said that, starting October, companies will pay a tax on profit based on general rules. Finance Minister Gheorghe Ialomitianu said he must complete the lump sum tax system for 2011 in a month. The minimum tax, which was implemented in 2009, ranges between 2,200 lei (EUR1=RON4.2719), for firms which register total revenue of up to RON52,000, and RON43,000 for firms with revenue exceeding RON129 million. Firms that report profit pay a 16% tax, but no less than the minimum cap set according to their revenue level. Early this year, the Government planned to replace the minimum tax with a lump sum tax, but the measure was postponed.

Romanian FinMin: Impact of minimum tax elimination is one billion lei

The minimum wage elimination, as of Oct. 1 this year, will bring less revenue to the budget, by one billion lei, said the Finance Minister Gheorghe Ialomitianu at the end of the Governmental meeting on Wednesday.'The impact of the minimum wage elimination upon this year's budget is around one billion lei,' said the Finance Minister.He also explained that the minimum tax will be replaced as of Oct. 1 with the profit tax, which will be paid according to the general rule, and the last day of payment for the amounts associated to the minimum tax for the third quarter of this year will be Oct. 25.Ialomitianu explained that the flat rate tax for the companies in the high-tax-evasion area will be paid as of Jan. 1, and a clear version of the flat rate tax application will be established in nearly one month.