News › Taxand’s Take Article

The Minimum Corporate Income Tax has been Abolished

Romania
7 Dec 2010

In order to relieve the tax burden for taxpayers who were gravely affected by the current economic situation, the Romanian Government abolished the minimum corporate income tax by amending the Romanian Fiscal Code at the end of September 2010. These amendments entered into force as of 1 October 2010 and include reporting obligations for taxpayers who previously owed minimum corporate income tax. Taxand Romania highlights the changes below.

The Ordinance No. 87/2010 details the reporting obligations for taxpayers that have been liable, until 30 September 2010, to pay minimum corporate income tax. Such taxpayers must calculate corporate income tax for the period 1 January - 30 September 2010 based on the minimum corporate income tax rules and, as an exception, must submit a separate corporate income tax return for the first 9-month period of 2010, by 25 February 2011.


Taxand's Take


The abolishment of the minimum corporate income tax represents a tax relief for taxpayers being in a difficult situation (e.g. when losses are faced). However, new sources for financing the state budget are to be identified by the Romanian Government in order to compensate the decrease in the state budget income due to the cancellation of the minimum corporate income tax.

Your Taxand contacts for further queries are:
Cristian Radulescu
T. +40 21 316 06 45
E. cristian.radulescu@taxhouse.ro

Manuela Licu
T. +40 21 316 06 45
E. manuela.licu@taxhouse.ro

More news from Taxand Romania:

Taxand's Take Author