Romania has introduced a series of significant tax changes for the 2024-2025 period, aimed at reducing the budget deficit and increasing state revenues. Among the most controversial measures are the Minimum Turnover Tax (IMCA), the Additional Turnover Tax (ICAS), and the reintroduction of the construction tax. These measures have a considerable impact on the business environment, particularly on large taxpayers and foreign investors.
1. Minimum Turnover Tax (IMCA)
IMCA is regulated by Article 18^1 of Law No. 227/2015 regarding the Fiscal Code and applies to companies with an annual turnover exceeding 50 million euros. This tax was introduced to ensure a minimum contribution to the state budget, even from companies that are in a fiscal loss.
Who is it applied to and what are the exceptions?
Applied to companies with a turnover exceeding 50 million euros.
Exceptions: credit institutions, oil and gas companies, and companies exclusively engaged in electricity and natural gas distribution.
Calculation Formula: IMCA = 1% × (VT – Vs – I – A)
VT = Total revenues
Vs = Revenues deducted from total revenues
I = Value of fixed assets under construction
A = Depreciation
Impact on companies:
Discourages aggressive tax optimization strategies.
May affect industries with low profit margins (e.g., the automotive industry).
Fiscal losses cannot be deducted from IMCA, penalizing companies with significant financial fluctuations.
2. Additional Turnover Tax (ICAS)
ICAS applies to companies in the oil and gas sector and imposes an additional tax on turnover. This tax is justified by the need to collect higher revenues from industries with high profit margins.
Regulation and applicability:
Applies to companies involved in the exploration, processing, and commercialization of oil and gas.
Applies to both Romanian and foreign companies operating in Romania.
Calculation formula: ICAS = 0.5% × (VT – Vs – I – A) (similar to the IMCA formula but with a reduced rate).
Implications:
Increases operating costs for companies in the sector.
May discourage investments in energy infrastructure.
Affects voluntary compliance for taxpayers who have concluded price agreements with ANAF.
3. Reintroduction of the Construction Tax
The construction tax, previously applied between 2014 and 2016, has been reintroduced through Government Emergency Ordinance No. 156/2024.
Who does it apply to?
Legal entities, both Romanian and non-resident with permanent establishments in Romania.
Calculation formula: 1% applied to the value of the constructions owned by the taxpayer as of December 31.
Deductibility: The value of taxed buildings is deductible from the local building tax.
Impact on the business environment:
Affects investments in infrastructure and industrial parks.
Increases operating costs for companies that own significant real estate assets.
May negatively influence expansion plans for large corporations.
Conclusions
The new fiscal changes raise important questions regarding their impact on Romania’s economic competitiveness. On the one hand, the state aims to increase budget revenues, but on the other hand, these new taxes may discourage investments and put pressure on large companies. In this context, it is essential for fiscal authorities to ensure clear implementation, legislative predictability, and transition measures to minimize the negative impact on the business environment.