Tax Flash no.14/2020 – Measures to stimulate the maintenance / increase of equity and clarifications regarding the corporate income tax bonus
09.09.2020 – Emergency Ordinance no. 153/2020 for the establishment of fiscal measures to stimulate the maintenance / increase of equity, as well as for the completion of normative acts was published in Official Gazette 817/2020
Measures to stimulate the maintenance / increase of equity
Taxpayers (corporate income tax payers, micro-enterprises tax payer, and specific tax payers), benefit from the following reductions of annual income tax / micro-enterprises income tax/ specific tax:
- 2%, if the accounting equity is positive in the year for which the tax is owed (for taxpayers legally obliged to constitute the share capital, the equity must also meet the condition of being equal or higher than half of the subscribed share capital);
- if the taxpayers register an annual increase in the adjusted equity in the year for which the tax is owed from the adjusted equity recorded in the previous year and at the same time meet the condition of being at a level at least equal or higher than half of the subscribed share capital, the reductions will be applied according to the table below:
| Tax reduction percentage | Adjusted annual equity growth intervals |
| 5% | up to 5%, inclusive |
| 6% | between 5% and 10% inclusive |
| 7% | between 10% and 15% inclusive |
| 8% | between 15% and 20% inclusive |
| 9% | Between 20% 25% inclusive |
| 10% | over 25% |
- 3%, if the taxpayers register an increase above the level provided in the following table of the adjusted equity in the year for which the tax is owed from the adjusted equity recorded in 2020 and if they simultaneously meet the condition of being at least equal or higher than half of the subscribed share capital
| The year for which the tax is owed | Minimum adjusted equity increase percentage |
| 2022 | 5% |
| 2023 | 10% |
| 2024 | 15% |
| 2025 | 20% |
A taxpayer will be able to benefit from one, two or three reductions, and in order to determine the value of the reduction, the percentages of the reductions will be added and the resulting value will be applied to the due tax.
There provisions enter into force starting with the year 2021.
Amendment to Emergency Ordinance no. 33/2020 regarding certain fiscal measures and the amendment of certain normative acts
- For the conclusion of the corporate income tax related to the fiscal year through the annual corporate income tax statement, the applied bonus is deducted from the value of the corporate income tax related to the fiscal year, and if the bonus exceeds the value of the corporate income tax related to the fiscal year, the level of the bonus taken into account is at the level of the respective tax.
- The value of the corporate income tax related to the fiscal year represents the corporate income tax after deducting the external fiscal credit, the exempt or reduced corporate income tax, the amounts representing sponsorship and / or patronage, private scholarships, within the limit provided by law, the reduction of the acquisition cost of the electronic fiscal cash registers.
- In the case of taxpayers with the modified fiscal year that apply the quarterly corporate income tax system of declaration and payment, as well as in the case of those with the modified fiscal year, the owed corporate income tax difference determined at the finalization of the corporate income tax for the fiscal year is considered to be the corporate income tax owed for the last quarter.
- Taxpayers with the modified fiscal year that submitted the corporate income tax return without applying the bonuses can benefit from them for the tax difference due when the corporate income tax for the respective fiscal year is finalised, by submitting a rectifying statement, the bonus also being granted for the quarterly corporate income tax due / quarterly advance payment, which is extinguished with the corporate income tax to be recovered from the previous fiscal years.
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