The Government of Romania gave up plans to lower the revenue cap for microenterprises willing to opt for (more favourable) income taxation as opposed to the standard 16% profit tax, Economica.net reported.

The provision, which would have allowed only firms with revenues of EUR 500,000 or lower to opt for the 1%-3% income tax rate, was taken out from the ordinance on fiscal amendments, minister of finance Adrian Caciu announced.

The decision was taken “after public consultations.” More precisely, after several employers’ organizations protested Government’s decision to change the taxation regime overnight.

Minister Caciu previously expressed firm commitment to enforce the new, more restrictive regime, as of January 1. There were views publicly expressed, coming from independent analysts, in favor of the Government’s proposal.

The companies with incomes in the region of EUR 0.5-1 mln can hardly be regarded as microenterprises and they should stand the fiscal pressures and develop the standard accounting of a normal company, they argue.

(Photo: Gov.ro)

andrei@romania-insider.com