2024-01-02 08:21:20
The year 2024 will bring higher taxes for many companies and individuals and, implicitly, a decrease in income, consumption, investments because the state needs additional financial resources. Some of the fiscal changes were anticipated, under the terms of the PNRR commitments, others came as a surprise. Fiscal-budgetary policy will continue in the direction of increasing taxes in the following years, with other major changes expected in 2025, the post-election year.
Daniel AngelPhoto: PwC Romania
In this article, we will analyze the most important changes that will apply from next year and their implications for taxpayers. Before, however, two observations are worth making: even if the state needs higher budget revenues, it must find a balance between this need and business development. They must grow, produce goods, services, provide more and better paid jobs in order to be able to pay higher taxes to the budget. The second observation is that the dialogue was formal with the business environment, and a consultation in this way risks lowering the confidence of investors and, in general, of taxpayers, and confidence is the pillar of collaboration, including tax compliance.
Analyzing the legislative provisions that will enter into force in 2024, we can say that the most impactful novelty, a fiscal experiment, as we have had over time with negative results for both the state and taxpayers, is minimum turnover tax of 1% owed by companies that exceed a turnover of 50,000,000 euros. Here we distinguish three categories of taxpayers. The vast majority (other than banking and oil and gas taxpayers) will owe this tax if the calculated profit tax is less than the turnover tax. I was saying that it is an experiment because turnover taxation is an almost non-existent practice in developed countries precisely because the size of the turnover does not, implicitly, mean large profit margins. According to our estimates, among the companies that have a turnover greater than 50 million euros, about 750 companies may be eligible and will owe around 6.2 billion lei.
Read the rest of the article on the PwC Romania blog
Article signed by Daniel Anghel, Partner and Leader of the Tax and Legal Consulting Department, PwC Romania
Article supported by PwC Romania
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