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.