The Romanian state is likely to disband the Forfetar tax that has killed off so many small businesses by October 2010, according to the latest discussions in the Department of Finance. Small companies have been paying anything from 500e upwards, irrespective of having nay profit or income in their business.
Many private foreign owners of Romanain real estate have a company simply as a way of legally owning the land, but have no actual activity. These persons have been forced to pay this annual tax despite have no activity, significantly increasing their annual running costs.
This elimination of tax will be a very welcome breath of fresh air to those affected & means that is it no longer necessary to freeze companies to avoid payment of this needless tax.
More information can be found here: http://www.ziare.com/articole/impozit+forfetar
Those affected should discuss with their accountant/ Contabil for exact timing. The new change in the law must first go through various stages of approval before being introduced, but no resistance is forseen.
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