Romanian Govt To Eliminate Minimum Tax As Of Oct 1

Boc said that, starting October, companies will pay a tax on profit based on general rules.

Finance Minister Gheorghe Ialomitianu said he must complete the lump sum tax system for 2011 in a month.

The minimum tax, which was implemented in 2009, ranges between 2,200 lei (EUR1=RON4.2719), for firms which register total revenue of up to RON52,000, and RON43,000 for firms with revenue exceeding RON129 million.

Firms that report profit pay a 16% tax, but not less than the minimum cap set according to their revenue level. Early this year, the Government planned to replace the minimum tax with a lump sum tax, but the measure was postponed.