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16. 04. 09. - 10:00

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16. 04. 09. - 10:00

Over 40,000 small companies to close over new tax

Romanian Times

Over 40,000 small and middle-sized enterprises (SMEs) will close as a result of the lump- sum tax imposed by the finance ministry, the Association of Romanian Employers claimed yesterday (Wed).

The amount of the lump-sum tax, which will depend on companies’ turnover, will be between 500 and 10,000 Euros.

"Although the lump-sum tax is fixed, depending on turnover, it will have a negative impact on entrepreneurial spirit, the essence of the market economy, and will force small entrepreneurs to close their businesses or find ways of declaring even smaller turnover," the association said.

The association called the decision to impose the new tax "anti-European" and claimed it would "reduce the state’s budget revenue and increase the number of the unemployed in Romania".

A lump-sum tax on companies that allegedly evade taxes by constantly reporting only losses has been introduced by the government.

Companies posting annual turnover of up to 12,000 Euros will pay 500 Euros, while those with turnover between 50,000 and 100,000 Euros will pay 1,500 Euros.

Finance Minister Gheorghe Pogea said: "The maximum ceiling is 10,000 Euros, to be paid by companies with more than 30 million Euros in turnover,"

Companies that report a profit will pay an annual tax of 16 per cent of their profit.

Initially, the government had planned to introduce an annual tax of 0.5 per cent of the revenue posted by companies that are active in certain sectors but no less than 1,500 Euros (6,500 lei) a year.

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