Fiscal Code amendment increases taxation of oil and gas companies in Romania

An amendment to the Fiscal Code in Romania, already promulgated by president Klaus Iohannis, introduces a 0.5% turnover tax owed by all oil and gas companies, irrespective of their size or profitability, on top of the 1% turnover tax owed by all companies in the country (irrespective of their sector of activity) with a turnover of EUR 50 million and a profit tax lower than 1% of its turnover, Profit.ro reported.

It is not clear whether the lawmakers actually intended to introduce this new tax or it is just a wrong wording because the initiators of the amendment announced they actually wanted to extend the applicability of the turnover tax to companies in the oil and gas sector with a turnover under EUR 50 million.

As promulgated and under the interpretation in line with the Romanian language (which might be different from the interpretation of the Finance Ministry), all companies in the oil and gas sector will owe the 0.5% turnover tax on top of either the profit tax (if they have profit) or the 1% turnover tax (if they didn’t make a profit or their profit was smaller than 1% of their turnover).

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