A New Tax System For Romanian Tourism Industry?

Abstract

The enterprises from tourism industry may apply till the end of 2014 year one of two tax systems as follow: (i) either tax on income system – quota of 3% applied to taxable income if the income’s value is less than 65.000 euro; (ii) either tax on profit system for all other enterprises. The tax authorities intend to apply a 3rd system named “specific tax on certain activities”. We chose to analyze this new tax system for the listed bellow three main reasons: (i) any enterprise – subject of paying tax on income or tax on profit – must analyze at the end of 2014 the new conditions mentioned by law in order to decide which tax system would be applied for the future period; (ii) for the activities distinctly mentioned in CAEN Code, e.g. hotels restaurant’ and bar’s activities, the tax amount is no longer computed based on profit or income , but – instead – tax amount is computed based on several factors such as: the number of beds from hotel or the surface of restaurant.

Keywords

• tax system
• specific tax on certain activities
• enterprise from tourism industry
• tax on profit
• tax on income