New Minimum Corporate Tax in Romania

Romanian authorities have decided upon establishing a minimum corporate tax, in the following amounts, depending on the total income registered until the end of the last year:
If the total annual income was between 0 - 52.000 Lei, the minimum corporate tax is 2,200 Lei, while if income had exceeded 129,000,001 the minimum corporate tax is 43,000 Lei. These are the minimum and maximum limitations; other amounts are calculated depending on certain thresholds.

The new minimum corporate tax is applicable to all taxpayers with certain exceptions, including:
- Non-resident entities activating in Romania in an association without legal personality.
- Non-resident legal entities (companies)
 

gaining income from real estate properties in Romania or sale of shares in a Romanian legal entity (company).

- Romanian micro-enterprises paying micro-enterprise taxes.
- Legal entities which have obtained before July 1st 2003 the permanent Certificate of investor in an undeveloped area.

Taxpayers paying profit tax below the minimum amount for the respective total income threshold are obliged to pay the minimum amount accordingly.

While Romanian micro-enterprises pay a current corporate tax in amount of 3% (for the year 2009), tax cannot be less than the annual minimum. Calculation of taxes for this type of companies is done in a specific manner, respectively comparing tax owed per trimester with the minimum per the respective period.