Starting with August 1st, 2017, the companies applying the specific tax (hospitality field) which have cumulated at the end of 2016 incomes between 100.001- 500.000 euro will be entitled to apply the microenterprise tax if they meet the other conditions mentioned by art. 47 of the Fiscal Code as well:

”a) They have derived incomes, others than those from the activities from: the banking field, the insurance and reinsurance field, the capital market, excepting legal persons conducting activities of brokerage in these fields, in the gambling field, and in the field of exploring, developing, exploiting the oil and natural gas fields.

b) They have derived incomes, others than those from consulting and management, in a percentage above 80% of total income;

c) They have derived incomes under the equivalent in lei of 000 euro. The exchange rate for determining the equivalent in euro is the exchange rate valid for the closure of the financial year when the incomes were registered;

d) The shared capital is owned by persons different from the government and the local administration;

e) They are not under the dissolving procedure, followed by liquidation, registered as such at the Trade Register or at the courts of law, according to the law.”

                  The change of the taxation status will have to be declared to the fiscal authority before the day of August 25th, 2017.

This info is issued by ECOVIS Romania as an informing letter over the most important evolutions/changes in the legal and tax fields, and in the investment environment in Romania as well. The information, the analysis and the comments mentioned above are of generic nature and it is not the intention or the imperative of the issuer to be used as a substitute for professional consulting dedicated to individual cases. For advice concerning your specific situation, please contact us directly.

© ECOVIS Romania SRL – 2017