Tax reduction for capitalized companies

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Tax reduction for capitalized companies

Romanian companies could benefit from a series of tax reductions if they increase and/or improve their equity position. The measure, adopted by emergency ordinance, was taken as many Romanian companies are undercapitalized and, therefore, having limited sustainable development perspectives. The facility consists in a reduction of corporate income tax, micro-company tax or activity-specific tax, in hospitality sector, granted for companies who maintain their equity positive and depending on the increase compared to the previous year.

In order to effectively apply the facility, companies need to consider several aspects, such as the tax and legal implications, the cost-benefit ratio or the consequences that may arise in the future if the application of the reductions is no longer appropriate from a cost/benefit perspective and a decrease of the equity is needed.

Contact

Dan Badin

Dan Badin

Tax Partner

Dan Badin joined Deloitte Romania as Tax Partner, leading the Corporate Tax and Transfer Pricing Teams, in January 2011. He has over 20 years of professional experience in international corporate taxa... More

Alexandra Smedoiu

Alexandra Smedoiu

Partner

With 15 years of experience in tax advisory, Alexandra has coordinated over the time numerous projects both locally and internationally, especially for clients in the financial services industry, but ... More

Elena Geageac

Elena Geageac

Senior Manager

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