Emil Dumitru: Romanians will be able to transform their PFA into a company without losing the history of the company

Deputy Emil Dumitru submitted a draft law by which he wants people who carry out economic activities through PFAs, individual businesses or family businesses to be able to transform these tax-registered individuals into legal entities.

Deputy Emil Dumitru (right) PHOTO Archive E. Dumitru

These economic entities operate on the basis of similar fiscal rules, are registered at the Trade Register, have a unique registration code and in some cases are VAT payers. If they want to expand, these small entrepreneurs are obliged by the current legislation to close their form of organization and open a company that does not take over the history of the old association. In this way, the fiscal history, the banking history and also the commercial relationships built over time are lost. The project helps these small entrepreneurs to linearly develop their business without suffering from bureaucracy. Among the benefits of this change is the fact that small entrepreneurs who have accessed grant funds for their projects will be able to make the transition to SRL without having to return the entire amount received“, says Emil Dumitru, vice-president of the Agriculture Commission in the Chamber of Deputies, according to a press release.

Emil Dumitru, who initiated the project together with Senator Ciprian Pandea, shows that this is how the Romanian capital is consolidated. “This liberal project aims to help the growth of small Romanian businesses and the development of Romanian capital. Romania's economy needs as many Romanian entrepreneurs as possible, who through their work contribute to their well-being, that of their families and the Romanian budgeti”, the liberal explains.

3% Bonus

Moreover, also in the economic area, the liberals, including Nicolae Ciucă, Bogdan Huțucă and three other colleagues, submitted the draft law to supplement Law no. 227/2015 on the Fiscal Code. More precisely, it refers to a series of bonuses for taxpayers, namely 3% of the amount owed to the state, if a series of conditions are met, as provided in the initiator's form:

Given that the economic environment reacts favorably to incentives and tax rebates, and an important part of economic operators in Romania makes significant efforts to fall within the legal deadlines for paying tax obligations, it is natural that all taxpayers who do not register outstanding tax obligations and have paid their tax obligations on time in the previous year to be encouraged/encouraged to continue high tax compliance”, claim the initiators in the statement of reasons.

Therefore, the authors of the project propose that “all good-paying taxpayers, payers of profit tax or micro-enterprise income tax, who in the last year have paid the tax due quarterly/advance payment by the due dates and who, on January 1, 2024, do not register outstanding tax obligations to the general budget consolidated, to benefit from a bonus of 3% exclusively for making investments provided for in the Catalog regarding the classification and normal durations of operation of fixed assets, approved by Government Decision, respectively: group 1 – Construction; Group 2 – Technical installations, means of transport, animals and plantations, as well as for supporting professional-dual education”