The Government of Romania has adopted Emergency Ordinance no. 31/2024 (EOG no. 31/2024), which brings new amendments and additions to the Fiscal Code regarding the minimum turnover tax, the way to establish the ceiling of EUR 500,000 for inclusion in the category of microenterprises in the case of ‘related enterprises’ and new conditions for applying VAT exemptions.
Law no. 296/2023 introduced the minimum turnover tax (IMCA) for taxpayers with a turnover of over EUR 50 million in the previous year and registering corporate income tax is lower than the minimum turnover tax. They are obliged to pay profit tax at the level of the minimum turnover tax.
Legal entities that carry out activities in the oil and natural gas sectors and that register a turnover of over EUR 50 million in the previous year owe, in addition to the corporate income tax, a specific turnover tax.
According to Law no. 296/2023, taxpayers / economic operators which exclusively carry out activities of distribution/supply/transport of electricity and natural gas and which are regulated/licensed by the National Energy Regulatory Authority (ANRE).
The term ‘exclusive’ has been removed from GEO no. 31/2024, and it is clarified that taxpayers / economic operators regulated/licensed by ANRE which obtained income from distribution activities in the previous year are not subject to IMCA, i.e. the specific turnover tax supply/transport of electricity and natural gas in a proportion of over 95% of the total revenues from which the revenues contained in the Vs indicator are subtracted.
