The Romanian Government is certainly looking very active recently, coming up with quite a few measures looking to boost the economy as well as increase budgetary funds generated by taxes. In this line, the Romanian government announced that it is looking to reduce the taxes for Romanian Micro Companies. The 3% income tax for micro companies (mandatory earlier this year), could be decreased to 1.5% from July, the Ministry of Finance announced, quoted by Mediafax.
"The rate of 1.5% seems more ethical, especially since February turnover tax is required. My interest is to collect, and to give them the chance to develop, grow and enter afterwards in another tax bracket, "said the Romanian Minister.
Income ceiling for micro this year has been reduced from 100,000 euros to 65,000 euros, equivalent in lei, and all private companies that do not exceed this threshold pay a 3% tax on income earned from 1 February 2013.
The government estimated that the taxes thus collected would micro budget of 457 million LEI this year.
One additional fairly important detail on the formation of a Romanian Micro Company is that a Romanian company which on the date of registration in the commercial register has subscribed a capital representing at least the equivalent in RON of EUR 25,000 can opt to pay profit tax (16%). The option shall be final, provided that the shre capital value remains the same for the entire period of existence of the legal entity. If this condition is not respected, the legal entity pays income tax (3%), beginning with the fiscal year following that in which the share capital is reduced below the RON equivalent of EUR 25.0000, of the other conditions are met.
For any details pertaining Romanian Company Law, level of taxes and levies for Romanian companies, or details on how to form a Romanian company, please visit our main website: www.RomanianLawOffice.com.
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