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1,300 Euros lump tax for companies

de Radu Rizea
Marţi, 31 martie 2009, 12:55 English | Business

The Finance Ministry intends to introduce a minimum lump tax for the profit tax and the business tax for small enterprises. The value could reach 1,300 Euros per year, governmental sources declared for NewsIn. The measure targets small enterprises and companies reporting annual losses, restaurants, hotels, transport and real estate companies.

According to a statement made on March 26 by Finance Minister Gheorghe Pogea, 80% of the companies report losses twice the value of profits, thus avoiding tax payment and causing unfair competition on the market.

"Out of 617,525 companies in Romania, 12,000 ensure 85% of the public income by paying their taxes", said Pogea. According to the official, in 2007, 242,000 companies reported losses.

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