Annual Minimum Corporate Tax Abolished

Government Emergency Ordinance no. 87/2010 that announces the elimination of the annual minimum corporate tax was published on 30^th September, 2010, in the Romanian Official Gazette, no. 669 and is effective from 1^st October 2010.

According to new regulations, as of 1^st October 2010, the minimum corporate tax due by Companies until now is cancelled. Taxpayers that had to pay minimum corporate tax by 30^th September 2010, must pay the profit tax related to the third quarter of 2010 latest by 25^th October 2010 and for the fourth quarter of 2010 by 25^th February 2011.

The GEO provides that the new companies or those companies that registered a tax loss at the end of the previous fiscal year will have to perform anticipated payments of corporate tax on the amount resulting from applying the 16% tax rate on accounting profit of the period for which anticipated payment will be made.