Income tax payment alternative for SMEs

The tax of 12% on the incomes of legal entities will be reintroduced in 2012. A simplified common tax of 4% of the operational activities is instituted for the small businesses that will not reach the cap of 100,000 lei for voluntarily registering as VAT taxpayers. Minister of Finance Veaceslav Negruta was quoted by Info-Prim Neo as saying that the income tax of 12% will be reintroduced in order to create a budgetary balance by diversifying the sources of income fueling public finances. The minister also said that this tax will be important for the local authorities. The given incomes will be redistributed to the country’s districts. In the case of the municipalities of Balti and Chisinau, they will represent 50%. The taxpayers from the SME sector with a turnover of under 100,000 lei will be able to choose between the general fiscal regime for legal entities and pay an income tax of 12% or the alternative regime and pay 4% of the operational activities. The economic entities that are not VAT taxpayers and have an annual turnover of 100,000 to 600,000 lei will also have the right to choose the payment method. The aim is to facilitate the accounting, fiscal reporting and administration of these categories of taxpayers, said Veaceslav Negruta. The draft fiscal-budgetary policy document for 2012 is to be adopted by Parliament.