Corporate income tax and microenterprise tax discounts between 2% and 15%

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CIT and microenterprise tax discounts

We are taking this opportunity to inform you of the legislative provisions included in the Emergency Ordinance no. 153/2020, which allows taxpayers to benefit from discounts between 2% and 15%, depending on the net asset position as reflected in the annual financial statements.

The discount is applicable to the annual corporate income tax/microenterprise tax due, subject to the fulfilment of the following conditions related to the net asset position:

  • The net assets are positive;
  • The adjusted net asset position increases on an annual basis with a minimum percentage.

Please refer to the table below for details on the system of discounts, which can be cumulated, depending on the fulfilment of the applicable conditions:

Annual discount

Condition

2%

Positive net asset position

5% - 10%

Annual increase of the adjusted net asset between 5% - 25% or more

3% (applies starting with 2022)

Annual increase of the adjusted net asset between 5% - 20% or more, for each year during the period 2022 – 2025, compared to 2020

In the above-mentioned context, we can assist you with the following:

  • Assessing your particular situation to determine whether a tax discount can be applied;
  • Assessing the evolution of the net asset position and subsequently, the related tax discounts that the company may apply under certain scenarios;
  • Assessing the potential measures for increasing the net asset position to apply higher tax discounts.

In case this is of interest to you, please do not hesitate to contact us.

Want to know more?

Want to know more?