Fiscal measures to stimulate the maintenance /increase of own capital

In the Official Gazette no. 817 of September 4, 2020, there was published the Emergency Ordinance 153/2020 regarding the establishment of fiscal measures to stimulate the maintenance / increase of the own capital, as well as regarding the completion of some normative acts.

Within the National Investment and Economic Recovery Plan there was initiated by the Ministry of Public Finance, a program for increasing the own capital of the companies. Considering that, according to statements made by the head of the Chancellery of the Prime Minister, Ionel Dancă, about 30% of companies register negative capital, which makes it difficult or even impossible for them to access bank financing, the Ministry of Public Finance has proposed a mechanism to stimulate companies to increase the own capital, to move from the area of negative capital to the area of positive capital.

The following provisions shall enter into force on 1 January 2021 and shall apply for the period 2021-2025.

Thus, if a company registers, during a fiscal year, an annual increase of the adjusted own capital of the year for which it owes the tax on adjusted own capital registered in the previous year, between 5% and 25%, there will be granted a bonus between 5% and 10% for each increasing stage of the own capital, resulting from the income tax / micro-enterprise income tax / specific tax, as follows:

Percent of tax deduction                              Annual growth intervals of adjusted own capital

growth

5%                                                          up to  5% inclusive

6%                                                          over   5% and up to 10% inclusive

7%                                                          over 10% and up to 15% inclusive

8%                                                          over 15% and up to 20% inclusive

9%                                                          over 20% and up to 25% inclusive

10%                                                        over 25%

 

Based on information from the annual financial statements, companies that already register positive accounting own capitals for the year in which they owe the tax, will benefit from a 2% reduction of the profit tax.

Also, starting with the year 2022, a bonus of 3% is granted, if the percentage of increase of the adjusted own capital of the year for which the tax is due compared to the adjusted own capital registered in 2020 registers values over the following levels:

The year for which the tax is due                                   The minimum percentage of increase of

adjusted own capital

2022                                                                                        5%

2023                                                                                      10%

2024                                                                                      15%

2025                                                                                      20%

 

For the taxpayers who, according to the legal provisions, have the obligation of establishment of share capital, the accounting own capital must simultaneously fulfill the condition of being at the level of a value at least equal to half of the subscribed share capital.

For the taxpayers who pay corporate tax (profit tax), the term for submitting the annual declaration regarding the profit tax and the payment of the profit tax related to the respective fiscal year is until June 25.

For taxpayers paying income tax on micro-enterprises, the deadline for submitting the declaration for the fourth quarter and the payment of the tax for this quarter is until June 25 inclusive of the following year.

For activity-specific taxpayers, the deadline for submitting the declaration for the second semester and the payment of the tax related to this semester is until June 25 inclusive of the following year.