Law 296/2023 on some fiscal and budgetary measures to ensure Romania’s long-term financial sustainability was published in the Official Gazette no. 977/27.10.2023.
I. Profit tax
1.1 Minimum tax of 1% of the turnover (for large companies)
Taxpayers who register in the previous year a turnover of over 50,000,000 euros, and who in the calculation year determine a profit tax, accumulated from the beginning of the fiscal year/amended fiscal year until the end of the quarter/calculation year, which is lower than the minimum turnover tax established according to the provisions below, are obliged to pay profit tax at the level of the minimum turnover tax.
The previous year’s turnover is the difference between total revenues (VT) and revenues subtracted from total revenues (Vs).
The minimum turnover tax is determined as follows:
IMCA = 1% x (VT – Vs – I – A), where the indicators have the following meaning:
IMCA – minimum turnover tax, determined cumulatively from the beginning of the fiscal year/ amended fiscal year to the end of the quarter/calculation year.
VT – total revenues, determined cumulatively from the beginning of the fiscal year/amended fiscal year to the end of the quarter/calculation year, as the case may be;
Vs – revenues that are subtracted from total revenues, determined cumulatively from the beginning of the fiscal year/amended fiscal year to the end of the quarter/calculation year, as the case may be, representing:
- non-taxable income;
- revenues related to product inventory costs;
- revenues related to the costs of services in progress;
- revenues from the production of tangible and intangible assets, which are not contained in indicator I;
- revenues from subsidies;
- income from compensations, from insurance/reinsurance companies, for damages caused to goods of the nature of stocks or own tangible assets;
- revenues representing excise duties that were simultaneously reflected in expense accounts;
I – the value of fixed assets in progress incurred by the purchase/production of assets, recorded in the accounting records starting from January 1 st, 2024, respectively starting from the first day of the amended fiscal year that begins in 2024;
A – accounting depreciation at the level of historical cost related to assets purchased/produced starting from January 1st, 2024/the first day of the amended fiscal year that begins in 2024.
Effective date: January 1st, 2024
