\n\tRomania has a new Fiscal Code, in force as of February the 1st, which brings changes in the taxation of small business and excises. Under the new Code, small companies will have to pay a 3% tax on revenues. At the same time, a company qualifies as a small business if its revenues do not exceed 65 thousand euros, down from the previous 100 thousand euro ceiling. The owners of such companies fear that the new tax policy might affect their businesses, in that the tax is levied irrespective of whether a company makes profits or not.<\/p>\n
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\n\tThe new Fiscal Code also introduces a 50% tax on consultancy and services contracts signed with firms registered in countries deemed as tax heavens and countries that do not have fiscal agreements with Romania to avoid double taxation. The Finance Ministry hopes this measure will limit the transfer of the Romanian companies\u2019 profits to other countries with the purpose of avoiding taxation and not for economic reasons.<\/p>\n
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\n\tExcises on beer will go up and that will push beer prices up by 2%, according to preliminary estimates. A new tax will also be levied on revenues from forestry, fishing and animal breeding, and on the proceeds from the sale of animal products. Changes were also operated on the provisions regarding deductible expenses and the taxation of energy producers, transporters and providers.<\/p>\n
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\n\tThe ceiling for research and development expenses that are eligible for deduction was raised from 20 to 50%. Incentiveswill be granted for the research and development activities that are likely to be capitalized on by taxpayers, in both Romania and the European economic area. State secretary with the Finance Ministry, Dan Manolescu, says the provisions of the new Fiscal Code will not have a significant impact on Romanians. Dan Manolescu:<\/p>\n
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\n\t\u201cI think ordinary citizens will not be affected by these new provisions, because taxes on salaries and social contributions have not been changed.\u201d<\/p>\n
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\n\tThe Finance Ministry will try to figure out over the next period whether lowering the tax burden on jobs, currently one of the biggest in Central and Eastern Europe, is an option. In another development, financial analysts warn that the level of taxes and duties collection in Romania stands at maximum 80%, much less than in other EU states. Its increase by at least 10% would improve the fiscal situation, the analysts say.<\/p>\n
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The new Fiscal Code that has recently taken effect in Romania has changed the taxation policy for small businesses and farming activities.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[],"coauthors":[],"class_list":["post-41276","post","type-post","status-publish","format-standard","hentry","category-today-in-the-news"],"acf":[],"yoast_head":"\n