An amendment to Romania’s tax law, already issued by President Klaus Iohannis, introduces a 0.5% turnover tax to be paid by all oil and gas companies, regardless of size or profitability, on top of the 1% turnover tax owed by all companies in the country (regardless of their sector of activity) with a turnover of EUR 50 million and a profit tax rate of less than 1% of its turnover, Profit.ro reported.

It is not clear whether the legislators actually intended to introduce this new tax or it is just a wrong wording as the initiators of the change announced that they actually wanted to extend the applicability of the turnover tax to companies in the oil and gas sector with a turnover of less than 50 million euros .

As announced and according to the interpretation in line with the Romanian language (which may differ from the interpretation of the Ministry of Finance), all companies in the oil and gas sector will be liable to 0.5% turnover tax in addition to either the profit tax (if they have a profit) or 1% turnover tax (if they did not make a profit or if their profit was less than 1% of turnover).

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