The Impact of Turnover Tax vs Taxing Profit to Retail and Cash&Cary Societies

Abstract The changes from Tax Code foresee that societies with fiscal value under one milion euro (to 500.000 euro till 31.12.2017) to be included in the micro-enterprises category and according to this provision owes to the state budget a 1% tax from fiscal value to 16% corporate tax. The paper presents benchmarking of this new fiscal measure applying above some retail and cash&cary societies from Romania to taxing profit in case this measure would be applied to all tipes of companies analysis based on a set of indicators (Absolute abnormality, growth index, turnover dynamics etc). The conclusions following the paper are: increase revenue collected to the state budget and simplifying the methods of determination to this tax but general apply to this measure could lead to infringement, encouraging layoffs, increasing unemployment, discouragement of investments, the impossibility of companies to recover in situations of crisis, discourage entry on market of new envestors, encouraging tax evasion, shortening economic chains.