The year 2024 will bring an increase in taxes for many companies and individuals and, implicitly, a decrease in income, consumption, investments, as the state needs additional financial resources. Some of the fiscal changes were expected under the terms of the PNRR commitments, while others came as a surprise. Fiscal policy will continue to increase taxes in the coming years, with other significant changes expected in 2025, the post-election year.
In this article, we will analyze the most important changes that will take effect from next year and their consequences for taxpayers. However, before that, it is worth making two remarks: even if the state needs more revenues for the budget, it must find a balance between this need and business development. They must grow, produce goods, services, provide more and better paid jobs in order to be able to pay more taxes to the budget. The second observation is that the dialogue with the business community has been formal, and the consultations thus risk undermining the confidence of investors and taxpayers in general, and trust is the basis of cooperation, including tax compliance.
Analyzing the legislative norms that will enter into force in 2024, we can say that the most effective novel, fiscal experiment that we have had over time with negative results for both the state and taxpayers is minimum sales tax 1% debt of companies whose turnover exceeds EUR 50,000,000. We distinguish three categories of taxpayers. The vast majority (except for banking and oil and gas taxpayers) will have to pay this tax if the calculated income tax is less than the sales tax. I said that this is an experiment because turnover taxation is almost non-existent in developed countries precisely because the size of turnover does not imply, implicitly, a large rate of profit. According to our estimates, among companies with a turnover of more than EUR 50 million, about 750 companies can meet the requirements and will owe about 6.2 billion lei.
Read the rest of the article on the PwC Romania blog
The article is signed by Daniel Angel, partner and head of tax and legal consulting at 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.