ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA

2. THE PROFIT TAX

(THE CORPORATE INCOME TAX)
1. Taxpayers and taxable basis
Taxable basis
Taxable profit sourced anywhere (Romania or
abroad)
Foreign legal persons that carry on activity taxable profit attributable to the permanent
through a permanent establishment in Romania
establishment
Foreign legal persons having the place of Taxable profit sourced anywhere (Romania or
effective management (POEM) in Romania (1st abroad)
Jan 2016)
Foreign legal persons that earn income from/or Taxable profit related to such income
in connection with real estate located in
Romania or from the sale/assignment of
shares/units in a Romanian legal person
Taxpayers
Romanian legal persons

2. Quota - 16%
Exceptions:

Taxpayers with activities as night-bars, casinos, disco, private clubs owe:

max (Profit tax, 5 % * Revenues realized from such activities)

Micro-enterprises are taxed at 3% / 2%/ 1% of their revenues

3. Computation of taxable base

Total revenues (7th Class)
th
- Total expenses (6 Class)
+ Elements similar to revenues
- Elements similar to expenses
- Fiscal deductions
- Non taxable revenues
+ Non-deductible expenses

3.1. Non-taxable revenues

dividends received from a Romanian legal person

dividends received from a foreign legal person who is a payer of profit tax or a tax similar to the
profit tax, located in a third country with which Romania concluded a doubly tax treaty if the
receiver owns minimum 10% from the share capital of the payer;
value of participations in other entities, registered further to the increase of capital in those
entities through incorporation of reserves, premiums, profits etc.;
revenues from the reversal, recovering or re-invoicing of non-deductible expenses, provisions,
interest or penalties annulment;
non-taxable income, expressly provided by specific regulations etc.
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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA

3.2. Expenses
3.2.1. Deductible expenses
 expenses incurred for business economic purposes
Examples (provided by the norms):

expenses incurred for labor protection, prevention of professional hazards and diseases and

insurance premiums for professional risks;

advertising and publicity expenses for the promotion of business, products and/or services, if
properly documented, as well as expenses with other goods and services incurred to boost sales;
transport and accommodation expenses of other individuals in the benefit of the economic activity;
subscription fees, dues and other mandatory contributions, as provided by legal norms;
marketing expenses, market research and promotion expenses in existing or new markets,
participations in fairs and exhibitions, business missions;
research and development expenses, in case these do not qualify as intangible assets from an
accounting perspective;
expenses for the improvement of management, of information systems, for the implementation,
maintenance and improvement of quality management systems, for the acquisition of certificates
attesting quality standards;
expenses for the protection of environment and preservation of resources;
expenses related to losses made by companies when writing off doubtful or disputed uncollected
receivables in case of bankruptcy (based on a final court decision), as well as in other cases such as
death of the debtor (when the receivable cannot be collected from the heirs) or liquidation in case
no successor exists and when the debtor has financial difficulties.

3.2.2. Partially deductible expenses

protocol and entertainment expenses (e.g., gifts to clients, business lunches) up to 2% of the
adjusted accounting profit before tax (Example no. 1);

employee-related expenses (social expenses): birth, death, incurable disease support, expenses

aimed at the proper functioning of certain units/activities of taxpayers, e.g., kindergartens, health
units, canteens, sports clubs, sponsorship for schools, treatment in health resorts) as well as gifts for
employees and their children for Christmas, Eastern, 8th of March or 1st of June - currently up to
5% of the total salary cost (Example no. 2);
expenses for meal or vacation vouchers, in accordance with the law;
losses of perishable goods within the limits provided by government-approved norms (Example
no. 3);
depreciation of vehicles in the limit of 1.500 lei/monthly;
50% of expenses borne for motor road vehicles which are not used exclusively for business
purposes, having a maximum authorised weight of not more than 3,500 kg and not more than 9
passenger seats, drivers seat included, owned or used by the taxpayer. Such expenses shall be fully
deductible for:
- vehicles solely used for emergency, security and protection and courier services;
- vehicles used by sales and procurement agents;
- vehicles used for carriage of passengers for consideration, including for taxi activities;
- vehicles used for the supply of services for consideration, including rental to other persons or
training activities carried out by driving schools;
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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
- vehicles used as merchandise for trading purposes

expenses for the maintenance or repair of cars used by management and administrative personnel,
limited to one car per person.

interest expenses and foreign exchange differences within the limits described in the thin
capitalization rules section;

impairment and provision expenses within specified limits:

bad debt adjustments, if certain conditions are met:
** in the limit of 30% of the value of client receivables, if the following conditions are
accomplished by the claim:
1. they are not paid for a period of more than 270 days from the due date;
2. they are not guaranteed by another person;
3. they are payable by a person that is not a related party of the taxpayer;
** in the limit of 100% of the value of client receivables if the following conditions are
accomplished:
1. the receivable is held in a legal person subject to an on-going bankruptcy procedure, on the
basis of a court decision that certifies such situation or by an individual subject to an
insolvency procedure;
2. they are not guaranteed by another person;
3. they are payable by a person that is not a related party of the taxpayer;
! Provisions for quality performance guarantees granted to clients are fully deductible.

Example no. 1
Total revenues 50.000 lei, from which dividends (761) 2.000 lei
Total expenses 40.000 lei, from which protocol: a) 3.000 lei; b) 100 lei
Computation basis = Total revenues Total expenses + Income tax expense (Acc. 691) + Protocol
expenses (Acc. 623)

Case a)
RD 623 = 3.000 lei

Case b)
RD 623 = 100 lei

623 deductible = 2% * (50.000 40.000 + 3.000) 623 deductible = 2% * (50.000 40.000 + 100) =
= 260 lei
202 lei
623 non deductible = 3.000 260 = 2.740 lei
623 is entirely deductible.
Taxable result = 50.000 40.000 2.000 + 2.740 Taxable result = 50.000 40.000 2.000 = 8.000
= 10.740 lei

Example no. 2
The company records the following social expenses:
- burial support 6.000 lei
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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
- presents for the employees and their minor children 5.000 lei
- treatment and rest tickets given to employees 8.000 lei
Salary fund: a) 300.000 lei; b) 1.000.000 lei
Social expenses = 6.000 + 5.000 + 8.000 = 19.000 lei
Case a)
Case b)
Deductible social expenses = 5% * 300.000 = Deductible social expenses = 5% * 1.000.000 =
15.000
50.000
Non deductible social expenses = 19.000 Social expenses are entirely deductible.
15.000 = 4.000
Example no. 3
A company that sales fruits bears a loss of 5.000 lei from the total quantity of 42.000 lei during the
transportation. The difference was sold for 70.000 lei.
Recording the loss
607 = 371 5.000 lei
The perishable goods limit (settled in the special norms) = 0.5% * 42.000 = 2.100 lei
Non deductible perishable goods = 5.000 2.100 = 2.900 lei
VAT subject to adjustment = 20% * 2.900 = 580 lei
635 = 4426 580 lei
Total non deductible expenses = 2.900 + 580 = 3.480 lei
3.2.3. Non-deductible expenses:

Romanian and foreign profits tax (a tax credit is allowed for taxes paid in other countries);

late payment interest, penalties and fines paid to Romanian or foreign authorities and non-residents;

losses from reduction in the value of inventory and assets that have not been attributed to a
responsible person, including the corresponding VAT as applicable;

losses from write of a claim, with certain exceptions (bankruptcy, insurance contracts);

any expenses made in favor of shareholders or associates, other than those generated by payments
for goods and services at the market value;

insurance premiums that are not related to the taxpayers assets or its business scope, except for

rented and leased assets or assets used as collateral for a business-related loan;
insurance premiums and other employment-related expenses that are not taxable at the level of the
employee;
expenses related to non-taxable income with certain exceptions;
service expenses, including management and consultancy expenses, which cannot be supported by
written contracts and documents for their provision;
insurance expenses for assets which dont belong to the taxpayer;
impairment expenses related to the decrease in the value of fixed assets as a result of revaluation;
expenses recorded in accounting without a document;
sponsorship expenses (a tax credit is allowed for sponsorship expenses on meeting certain
conditions).

Sponsorship
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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
Taxpayers incurring sponsorship expenses in accordance with relevant legislation are entitled to a tax
credit (i.e., deduction from the profits tax payable of an amount equal to the sponsorship expense) if the
following conditions are cumulatively met:
 sponsorship expenses do not exceed 0.5% of turnover; and
 sponsorship expenses do not exceed 20% of the profits tax liability.

a.

Fiscal deductions

contributions to the legal reserve fund,

interest expenses as well as foreign exchange differences retained from previous periods to be
deducted

fiscal depreciation

3.3.1. Legal reserve

It is generally up to 5% of the adjusted annual accounting profits before tax*, till the reserve fund
reaches 20% of the share capital;
Example for the legal reserve fund
*Computation basis = Total revenues Total expenses + Income tax expense
Total revenues - 58.000 lei
Total expenses - 23.000
761 Revenues from dividends granted by Romanian companies - 2.000 lei
691 Profit tax expense previously recorded - 3.000 lei
1012 Share capital - 10.000 lei
1061 Legal reserve from previous periods: a) 50 lei; b) 1.980 lei
The conditions are:
5% * (58.000 - 23.000 + 3.000 + 0) = 1.900 lei
20% * Share capital = 20% * 10.000 = 2.000 lei
Case a)
The legal reserve cant be increased with more than 1.900 lei. Taking into account the initial balance of
the legal reserve of 50 lei, the entire amount of 1.900 lei will be used for the increase of the legal
reserve.
Total legal reserve = 1.900 + 50 = 1.950 lei
Deductible legal reserve = 1.900 lei
Taxable income = 58.000 - 23.000 - 2.000 + 3.000 1.900 = 34.100 lei
Income tax = 16% * 34.100 = 5.456 lei
Case b)
The legal reserve cant be increased with more than 2.000 - 1.980 = 20 lei, as it reaches its maximum
limit of 20% of the share capital.
Total legal reserve = 1.980 + 20 = 2.000 lei
Deductible legal reserve = 20 lei
Taxable income = 58.000 - 23.000 + 0 - 2.000 + 3.000 20 = 35.980 lei
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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
Income tax = 16% * 35.980 = 5.757 lei

3.3.2 Thin capitalization rules (interest expenses and foreign exchange losses)
Usually, interest expenses incurred by companies (other than credit institutions) are subject to the
following limitations:

Debt-equity ratio interest expenses are deductible if the debt-equity ratio is not higher than 3. In
case such ratio is higher than the aforementioned limit or is negative, interest expenses are nondeductible for profits tax purposes and can be carried forward until they are fully deductible under
the same conditions.

Interest expenses for loans granted by companies other than financial institutions are deductible
based on the following limits:
- the reference interest rate of the NBR relating to the last month of the quarter, for loans
denominated in RON;
- the annual interest rate of 4% for loans in foreign currencies (the threshold can be updated
based on Government Decision).
The difference between foreign exchange losses and foreign exchange revenues related to longterm loans (over one year) is treated as interest expense and is subject to the debt equity ratio
limitation.
Interest expenses as well as foreign exchange differences related to loans obtained from Romanian
banks (including subsidiaries of foreign banks), leasing companies (for leasing operations) and other
legal entities allowed to grant loans according to the law are not subject to the thin capitalization rules.
Deductibility of interest expenses incurred by financial institutions is not limited based on the abovementioned rules.
Debt-equity ratio = Average of long term debts / Average of share capital
Example
A company owes interests to an entity, other than a bank or a credit institution in value of 9.400 lei.
The interest rate is with 3% higher than the reference interest rate of BNR (8,75%). The initial value of
the long-term debts is 100.000 lei, while their ending value is 140.000. The initial value of the share
capital is 20.000 lei, while their ending value is 30.000 lei.
The debt equity ratio = [(70.000 + 90.000)/2 ]/ [(20.000 + 30.000)/2 ] = 3,2
Interest at the BNR level = (9.400*8,75%) / 11,75% = 7.000 lei
Non deductible interest expenses = 9.400 7.000 = 2.400 lei
These expenses are reported in order to be recovered the next years when debt-equity ratio is lower
than 3.

3.3.3. Tax depreciation

Three alternative methods are available for the computation of tax depreciation, namely:
- straight-line depreciation;
- declining/reducing balance depreciation; and
- accelerated depreciation (for equipment and patents).
These methods must be followed consistently.

ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
Expenses related to depreciation of vehicles used for the carriage of passengers with no more than 9
seats, drivers seat included, in the M1 category shall be deductible for each such vehicle within the
limit of Lei 1,500/month.
The depreciation regime:
Fixed asset
Fiscal depreciation method
Constructions
Straight-line method
Technological equipment, respectively machines, Straight-line,
declining
balance
or
tools, and installations, as well as for computers accelerated method
and equipment peripheral to computers
Any other depreciable fixed asset
Straight-line or declining balance method

The expenses related to the acquisition of patents, copyrights, licenses, trademarks or production
marks and other similar values shall be recovered through straight-line depreciation deductions over
the period of the contract or the period of use, as the case may be.

The expenses related to the acquisition or production of software shall be recovered through
straight-line depreciation deductions over a period of 3 years.

For patents, the declining balance method of depreciation or the accelerated method of depreciation
may be used.
The fiscal depreciation shall be calculated beginning with the month following the month in which the
depreciable fixed asset is put into use.

Exceptions:

 investment expenses effected from the own 

sources to fixed assets from the public domain

 investment expenses effected to fixed assets 

under concession, rented or under the
management tenancy of the person which
effected the investment
 investment expenses for the arrangement of land 

 mining buildings and constructions, salt mines 

with extraction in solution by wells, quarries,
current exploitations, for solid mineral
substances and those in the oil extraction
industry, for which the period of use is limited
by the duration of the reserves and which may
not be given other uses after the exhaustion of
the reserves, as well as investments for
uncovering
 expenses for the operation, maintenance and 
repair of business dwellings located in the
locality where the official head office is seated or
where the company has secondary offices

over the normal period of use / remaining

normal period of use / over the period of
the contract of concession or rental
over the period of the contract / over the
normal period of use

on a straight-line basis, over a period of 10

years
calculated per unit of product, depending
on the exploitable reserve of useful
mineral substance

within the limit corresponding to the

constructed areas as provided in the law on
dwellings, which shall be increased by
10%

Examples of useful lives (Catalogue for the classification and normal useful lives of fixed assets,
used for business purposes):
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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
Fixed asset
Constructions
Machinery and equipment
Furniture, fittings and protection systems
Vehicles

Years
8 to 60
2 to 24
2 to 15
3 to 9

The useful life for each type of asset is provided as an interval. Upon commissioning (putting into
function), the taxpayer is allowed to choose a useful life within such interval.
Patents, licenses, know-how, manufacturers brands, trademarks, as well as other similar industrial and
commercial property rights, are depreciated over the period provided for their utilization or the
contractual period, as the case may be.
Goodwill is not considered a depreciable asset for tax purposes.
Revaluation of fixed assets, performed in accordance with the accounting regulations, would be taken
into account for fiscal purposes.

Leasing contracts
Financial leasing
Operational leasing
The lessee shall be treated from a fiscal The lessor shall be treated from a fiscal viewpoint
viewpoint as the owner.
as the owner.
The lessee shall make the depreciation of the The lessor shall make the depreciation of the asset.
asset.
The lessee shall deduct the interest.
The lessee shall deduct the rent (lease installment).

3.4. Tax exemption of reinvested profit

Profit invested in technological equipment - vehicles, plant and machinery - sub-group 2.1 and class
2.2.9 of the Catalogue for the classification and normal useful lives of fixed assets, used for business
purposes shall be granted within the limit of the profit tax due for the concerned period.
Exemples:
- tehnological equipments;
- computers, peripherals, machines for control and invoicing, home appliances
Accounting formula (31st of December): 129 = 106
The exemption shall be computed quarterly or yearly, depending on the profit tax computation system.
It shall be required to keep in their patrimony such technological equipment for a period, which is at
least equal to half of their economic life, determined as per applicable accounting regulations, but not
more than 5 years

3.5. Fiscal losses

ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
The fiscal loss recorded shall be recovered from the taxable profits obtained during the following 7
consecutive years.
The fiscal loss recorded by a taxpayer who ceases to exist due to division or those, which take over the
patrimony of the absorbed company, as the case may be, shall not recover by any newly formed
taxpayer or merger.
The fiscal losses from exemption periods regarding the income tax can be recovered from the future
taxable income.

3.6. International fiscal aspects

Fiscal credit
If a Romanian legal person obtains incomes from a foreign state through a permanent head office or
incomes subject to tax by Pay-As-You-Earn and the incomes are taxed both in Romania and in the
foreign state:
 In case the credit method is stipulated in the fiscal treaty, the tax paid to the foreign state,
whether paid directly, or indirectly by withholding and transfer by another person, shall be
deducted from the profit tax determined according to the provisions of the present title.
The deduction for taxes paid to a foreign state during a fiscal year may not exceed the profit tax
calculated by applying the profit tax quota provided of 16% on the taxable profit obtained in the
foreign state, determined in accordance with the rules provided in the present title, or on the
income obtained in the foreign state.
The tax paid to a foreign state shall be deducted only if the Romanian legal person submits
adequate documentation, according to the legal provisions, which should reflect the fact that tax
was paid to the foreign state.

 In case the exemption method stipulated in the fiscal treaty, the profit is not taxed in
Romania.
External fiscal losses
Any loss realized through a permanent head office from abroad shall be deductible only from the
incomes obtained from abroad.
The losses registered through a permanent head office from abroad shall be deducted only from such
incomes, separately for each source of income. The uncovered losses shall be carried over and
recovered during the following 5 consequent fiscal years.

3.7. Payment of tax and submission of tax statements

Reporting and payment of tax:
The quarterly system:

 on a quarterly basis by the 25th inclusively of the first month following the end of quarters IIII Statement 100
 Final tax assessments and payment of the profit tax related to the fiscal year in question shall be
carried out by 25 March inclusively of the following year Statement 101
The annual system:

 Possibility of opting for reporting and paying the annual tax profit by means of early payments
made on a quarterly basis I-IV - Statement 100
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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA

 The option shall be exercised at the beginning of the fiscal year => notification until 31 January
inclusively of the fiscal year in question.

 The option exercised is mandatory for at least 2 consecutive fiscal years.

 Final tax assessments and payment of the profit tax related to the fiscal year in question shall be
carried out by 25 March inclusively of the following year Statement 101

 Banking companies Romanian legal persons and Romanian branches of banks foreign legal
persons shall be required to report and pay the profit tax on yearly based on quarterly payments.
 The deadline for making the annual payment shall be the deadline for filing the profit tax return
by 25 March inclusively of the following year.
Non-profit organizations shall be obliged to pay the profit tax on an annual basis until 25
February of the year following the year for which the tax is calculated.
Taxpayers that derive the majority of income from the growth of cereals and technical plantations,
fruit trees and vineyards are required to report and pay the profit tax annually, by 25 February of
the year following that of tax assessment.
With the annual profit tax declaration, the taxpayers shall be obliged to submit a declaration regarding
the payments and commitments to non-resident persons, which includes the purpose, the amount of
each payment, the name and address of the beneficiary. The amounts committed or paid for imported
goods or for international transport shall not be included in this declaration.
The taxpayers shall be responsible for the calculation of the profit tax.
Representative offices are taxed on a yearly basis at a lump sum of the RON equivalent of EUR 4,000,
payable in two equal installments.

3.8. Tax on dividends

Dividend - a distribution in money or in kind made by a legal person to a participant in the legal
person, as a consequence of the ownership of participation titles in such legal person
Submission of profit tax declarations:
A Romanian legal person which pays dividends to a Romanian legal person shall have the obligation to
withhold and to pay the withheld tax on dividends to the state budget.
Computation:
Tax quota * Gross dividend paid
Tax quota * Gross dividend paid
Shareholders
Resident juridical persons

Tax quota in
2015

Tax quota in
2016

- 16%
- 0% if certain conditions are met

- 5%
- 0% if certain conditions are
met
- 5% or
- the lower quota between the

Non resident juridical persons - 16% or

- the lower quota between the

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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA

Resident individuals
Non resident individuals

fiscal code and the

convention
16%
- 16% or
- the lower quota between
fiscal code and the
convention or
- 0% if certain conditions are
*

tax

fiscal code and the

convention
5%
- 5%
the - the lower quota between
tax
fiscal code and the
convention or
met - 0% if certain conditions
met) *

tax

the
tax
are

Payment date:
 by 25th of the month following the month when the dividend is paid.
 by 25th of January of the next year, in case the allocated dividends have not been paid by the
end of the year in which they were distributed
*Exemption: Dividends paid by resident legal entities to their shareholders (i.e., Romanian legal
entities and EU resident legal entities) are exempt from withholding tax in Romania provided the
shareholders own a minimum 10% of the share capital of the Romanian legal entity for an
uninterrupted one year period ending at the date of dividend payment.
!! Payments made by a Romanian legal entity to any of its shareholders for goods or services provided
by the latter, in excess of the market value of the transaction, are assimilated to dividends from a tax
point of view. The same tax treatment will apply to payments made for supply of goods/services to be
used for personal purposes by the companys shareholders or associates.
Starting 2016, they will be reconsidered as revenues from other sources.

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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA

3. TAX ON MICRO ENTERPRISES INCOME

(Title III)
Definition: The conditions to qualify for the microenterprise regime are the following:
1. derives income, other than:
- from consultancy and management, in a ratio exceeding 80% of total income
- from gambling, banking, insurance and reinsurance, capital market, except for persons
conducting brokering activities in such lines of business;
2. annual turnover up to EUR 100.000;
3. share capital is privately owned;
4. is not undergoing any dissolution and liquidation procedure, registered with the Trade Register or
courts of justice, under the law.
Quota:
3%
2%
1%
1% for
months

Conditions
No employee
1 employee
2 or more employees
24 For new founded companies if certain conditions are fulfilled:
1 employee
New shareholders
48 months of activity

Taxable base:
Revenues from any source
- Income related to the inventory cost (711)
- Income related to the costs of under progress services (712)
- Income related to the production of tangible and intangible assets (72)
- Income from subsidies (741, 7584)
- Income from provisions and adjustments for depreciation or impairment if expenses were not
deductible (781, 786)
- Income resulting from the reimbursement or cancellation of late payment interest and/or
penalties, that were not deductible expenses for taxable profit purposes (7581)
- Income earned from compensations from insurance/reinsurance companies, for damages to the
goods in the form of inventories or to own tangible assets (7581)
- Income from foreign exchange differences (765, 768)
- Financial income derived after settling receivables and debts in Lei at an exchange rate that is
different from the one at which it was initially derived (766)
- Commercial discounts granted subsequent to invoicing (709)
+ Commercial discounts received subsequent to invoicing (609)
+ Positive foreign exchange differences (in the IVth quarter) (765 + 768 665 668)
+ Reserves written off (for fiscal facilities, legal reserve) (D 106)
+ Retained earnings from reevaluation reserves (1175)
This regime is mandatory.

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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
Microenterprises subject to the profit tax shall be under the obligation to pay the tax regulated by this
title starting with the following fiscal year, provided that such microenterprises meet the conditions laid
down.
Accounting formula:
698
Microenterprises income tax expenses

4418
Microenterprises income tax payable

The microenterprises, which are payers of the tax on incomes of microenterprises, shall no longer apply
such system of taxation beginning with the fiscal year that follows the year when the conditions are no
longer satisfied.
Exemption:
If during the year, a microenterprise derives revenues in excess of EUR 100,000 or derive income from
consultancy and management more than 20% of the total, such a microenterprise shall pay the profit
tax from the quarter the limis are exceeded.
Payment of tax and submission of tax statements

on a quarterly basis, until the 25th of the month following the quarter for which the tax is
calculated

100 Statement on the obligations to the state budget - by the time limit for the payment of
the tax.

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