Romania to apply flat-rate tax to hotels, restaurants, car repair shops from January 2014
The flat-rate tax – which will replace the 16 percent tax on profit and the 3 percent tax on turnover with a fixed amount – will come into force on January 1 2014, if approved by the Romanian Parliament.
The draft law, amending the tax system, was discussed and approved at first reading by the Romanian Government last week and has been sent to the parliament for the green light.
Delegated minister for SMEs, tourism and business environment Maria Grapini said the flat-rate tax would also apply to some categories of services, including hotels and pensions, restaurants, bars and cafes, beauty salons and car washes.
For example, bars and cafes located in central areas in Bucharest or in the first seven large cities in the country will pay between EUR 1,500 and EUR 3,000 per year, depending on the area they cover.
The largest flat-rate tax for restaurants will be EUR 5,000 per year and will be paid by the restaurants with an area of over 300 sqm located in Bucharest’s A zone. In the case of bars the maximum tax is EUR 3,400.
Owners of 4 and 5 star hotels in Bucharest will pay a flat-rate tax per accommodation place, between RON 468 (some EUR 100) and RON 891 (EUR 200).
A 3-star hotel in Cluj will pay between RON 205 (some EUR 45) and RON 244 (over EUR 50) per accommodation place, while a 1 or 2 star unit in Busteni mountain resort will pay a tax of some RON 120 (around EUR 30).
Owners of 4-star hotels located in A zone (central zone) in Bucharest will pay a tax of RON 557 (over EUR 120) per accommodation place,while those located in the B zone will pay RON 535 (some EUR 120). For the hotels located in the C zone the tax will be of RON 490 (around EUR 110), while those located in D zone will have to pay a forfeit tax of RON 468 (some EUR 100).
The highest flat tax will be paid by 5-star hotels located in the central zone - RON 891 (EUR 200).
A car wash, a vulcanization or car service with an area of about 200 sqm will pay an annual flat tax between RON 14,400 (over EUR 3,200) and RON 24,000 (some EUR 5,300).
Irina Popescu, irina.popescu@romania-insider.com
