How you can benefit from tax reduction by increasing the company’s capital

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increasing the company's capital

In case you didn’t know, if you own a Romanian company, increasing the company’s capital can bring you a reduction of its tax due for the period 2021 – 2025. More precisely, according to an emergency ordinance published last year by the Romanian government, Romanian companies that increase their capital with a minimum percent can benefit in the next period of significant tax reductions.

Through this measure the Romanian government wants to stimulate the recapitalization of companies that have negative capital.

We describe below the conditions under which you can benefit from the provisions of this ordinance and what is the tax reduction that could apply to your company.

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Picture of Florin Stoicescu

Florin Stoicescu

Tax & Legal consultant since 2005.

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