Romanian tax law changes

[Lollix]

I spoke to a friend today who has extensive investments in Romania, held in the ownership of a number of Romanian companies. He told me that the government there has initiated a tax on all companies, but that any company that is not trading (for example holding land for a number of years for speculative purposes) can suspend the activity of the company for a couole of years and avoid the tax. Deadline is around now I think.

This may be of interest to anyone with land or houses in Romania, probably doesn't apply to apartments. Perhaps some of the Romania experts on the forum could enlighten us further?

 

[Ancutza]

This is true and I'm in the process of looking to do it with a couple of my companies which were established only to hold land. I'll let you know how I get on.

 

[Ancutza]

I spoke to my accountant about this this morning and have decided against it. Basically any company with zero profit (or a loss) pays about 500 euro per year tax to the State.

So if you have a company (as I do) which holds land for speculative purposes then it might be worth it. It's unlikely to be true for companies holding buildings since these should be rented right?

For such a relatively smalll amount of money I've decided to keep the company active in case it suits me anytime to run an invoice through it.

Further things to be borne in mind is that you can only mothball the company once and there is general speculation here that the tax in question may be done away with soon anyway. Whoever heard of taxing someone for not making money!???