Romania: Proposed financial sustainability measures under consultation
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The Romanian Ministry of Public Finance has initiated a consultation on a financial sustainability bill. The proposed legislation includes several key measures:
Introduction of a 1 percent minimum turnover tax (IMCA) for companies with an annual turnover exceeding 50 million euros. This tax applies if the standard profit tax is computed to be less than the IMCA.
Implementation of a 1 percent, nondeductible additional tax for both resident and nonresident credit institutions, applicable to specific turnover.
Clarification that the new taxes will take effect on January 1, 2024, or from the first day of the modified fiscal year that begins in 2024 for taxpayers with fiscal years other than the calendar year.
Establishment of a two-rate system, effective January 1, 2024, for micro-enterprises. This system comprises a 3 percent tax rate for entities with turnovers exceeding 60,000 euros or those engaged in specified activities, and a 1 percent tax rate for entities with turnovers up to 60,000 euros, provided they do not engage in the specified activities.
Introduction of a ceiling of 10,000 Romanian lei on the monthly nontaxable gross income for individuals involved in computer program development. This provision is applicable until December 31, 2028.
Adjustment of the VAT rate for alcohol-free beer and high-sugar foods, transitioning them from the reduced 9 percent rate to the standard VAT rate.