Direct Taxation of Certain Activities in Romania: Specific Tax

Abstract

Direct taxes are one important instrument for governments to influence economic activities, but also to reduce tax evasion. In 2017, Romanian regulators introduced new lump-sum tax on certain activities. The aim was to impose an annual payment for companies that activate in tourism and food sector, regardless of their financial situation. Profit is no longer taken into account in these cases, but some particular variables. Present paper aims to detail the way that specific tax is calculated, given the different sectors that are affected by the new legislation.

Keywords

• legislation
• lump-sum tax
• annual specific tax