Romania mulls extending flat tax in entire hotels, restaurants sector

The flat tax paid by small firms running hotels, bars and restaurants might be extended to the entire sector, regardless of the business operations size, according to a proposal of the economic commission within the Deputies’ Chamber, says The flat tax is currently paid only by firms with less than EUR 5mn annual sales and which have more than 70% of their revenues coming from running hotels, bars or restaurants. The other companies in the sector have to pay the 16% corporate income tax, but the economic commission proposed the elimination of both above-mentioned conditions. The government says that the changes would imply that all companies having hotels, bars and restaurants operations listed among their activity fields would pay a specific flat tax and not the corporate income tax, thus raising discrimination issues. In addition, the big companies would have more advantages. The changes have big chances to pass the Deputies’ Chamber vote, as they are backed by a significant number of MPs.

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