Accounting and Fiscal Implications Related to the Transition from Profit Tax to Micro-Enterprise Income Tax

Abstract

In the years preceding the coronavirus pandemic, the Romanian economy experienced constant economic growth, which determined a significant increase in the companies' profitability. Still, the budget revenues from the taxation of the profits obtained by the company did not perform as expected. This was also due to the fact that there were extensive legal changes referring to the way of taxing the company's profits. In this context, we intend to analyze the situation of a trading company whose business field is construction works of residential and non-residential buildings. The company operates in the Brasov city area and in recent years has seen several changes from the income tax of micro-enterprises to the profit tax and vice versa, which has had a considerable impact on the volume of taxes due