The Romanian Government decided to give up the idea to establish the turnover tax, Prime Minister Mihai Tudose said on Monday, July 17.

However, the Executive is now doing a simulation on the solidarity tax, the premier added.

The governing coalition met on Monday to decide upon the financial instruments provided by the new governing program, including the tax on turnover and the solidarity tax. The Government was planning to replace the current 16% tax on company profits with a tax on turnover starting January 1, 2018. However, the idea didn’t go through.

The Prime Minister didn’t offer any threshold above which the solidarity tax will be applied. He said that the tax would not apply to companies, but to individuals “who earn very much and benefit from many things from the state”.

At the end of June, the new finance minister Ionut Misa said that the Romanian Government wants to introduce a new type of tax called the solidarity tax, which will be paid by people who have monthly wages above RON 14,500 (EUR 3,200).

One in three companies in Romania risks insolvency on new turnover tax

editor@romania-insider.com