Taxpayers subject to corporate tax, microenterprise tax or the tax on specific activities (HoReCa) benefit from certain tax reductions, as follows:
- 2% – if the net assets are positive and have a value of at least 50% of the share capital
- up to 10% – if there is an increase in the value of net assets compared to the previous year (the legislation provides for specific ranges). The conditions listed under the previous bullet point also apply in this case.
- 3% (applicable from 2022) if there is an increase in the value of net assets compared to the value reported for 2020 above the limits provided for by law (increasing from 5% in 2022 to 20% in 2025). The conditions listed under the first bullet point also apply in this case.
The incentives described above can be cumulated and do not apply to taxpayers for whom the accounting regulations are issued by the National Bank of Romania/Financial Supervisory Authority.
The legislation provides specific rules for calculating equity.
The tax incentives are applied as follows:
- Corporate tax: the reduction applies to the annual tax amount (calculated after deducting any amounts representing tax credits, exemptions, etc.)
- Microenterprise tax: the reduction is calculated with reference to the annual tax amount and is deducted from the amount of tax due for the fourth quarter (and, where appropriate, from the tax due for previous quarters, by submitting a rectification return)
- HoReCa: the reduction is calculated with reference to the annual tax amount and is deducted from the tax due for the second semester (and, where appropriate, from the tax due for the first semester, by submitting a rectification return)
These provisions will apply for the period 2021-2025.
Tax Flash 10 September 2020
