PROFIT TAX OR INCOME TAX? OPTIONS FOR FISCAL OPTIMIZATION OF ROMANIAN SMALL COMPANIES

Authors

  • Doina Pacurari "Vasile Alecsandri" University of Bacau

DOI:

https://doi.org/10.29358/sceco.v0i18.228

Keywords:

micro-enterprise, profit tax, income tax, tax evasion, fiscal optimization

Abstract

Entrepreneurs usually seek for solutions to reduce their tax burden. We can speak about tax optimization as long as these solutions are in accordance with the law; if they are not, they obviously fall into the area of fiscal fraud. This paper addresses the issue of taxation applicable to the Romanian micro-enterprises. These are small entities that fulfil certain conditions regarding total turnover, equity and domain of activity. Although the provisions applying to micro-enterprise taxation were elaborated, among others, with the intention to reduce tax evasion, they also allow the micro-enterprises with losses to avoid tax payment. In a country with low purchasing power and a great number of taxes and fees like Romania, the entrepreneurs are tempted to use any kind of method to reduce the payments due to the state budget. The micro-enterprise owners make no exception in this matter.

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Published

15.12.2013

Issue

Section

Articles

How to Cite

Pacurari, D. (2013). PROFIT TAX OR INCOME TAX? OPTIONS FOR FISCAL OPTIMIZATION OF ROMANIAN SMALL COMPANIES. Studies and Scientific Researches. Economics Edition, 18. https://doi.org/10.29358/sceco.v0i18.228