Romania’s top ten largest banks will pay a turnover tax of between 23% and 100% of their income tax in the first two years after the government’s proposed measure takes effect, with a rate of 2%, according to calculations made by PwC Romania’s financial services tax team.
This minimum sales tax will be added to the income tax. Thus, the effective tax rate in the banking system – income tax plus turnover tax – calculated on the basis of financial data for 2022, will be from 17% to 72% in relation to gross profit.
Thus, the state could collect from banks an additional tax of at least 680 million lei per year, which is 42% higher than the level of 2022. Banks that had a low effective tax rate and that benefited from certain fiscal benefits (for example, non-taxation of dividend income, benefits for reinvested profits, etc.) were the most affected.
Read the rest of the article on the PwC Romania blog
Article contributed by Diana Coroabe, Partner, PwC Romania, and Monica Ardelean, Senior Manager, PwC Romania
Article supported by PwC Romania
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.