Tax reduction for capitalized companies

Solutions

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

Georgiana Singurel

Georgiana Singurel

Partner

Georgiana is the coordinating partner of the corporate and M&A team of Reff & Associates with 20 years of experience as a lawyer. Georgiana is specialized in M&A projects, including group reorganizati... More

Diana Fejer

Diana Fejer

Senior Managing Associate

Diana is Senior Managing Associate with Reff & Associates and serves clients primarily in the M&A, Corporate and Commercial Law practices. Having more than 15 years of experience as a lawyer, she coor... More