The state this year made 1.22bn RON (300m euros) from taxes levied on banks' profits, more than what the entire banking system is expected to gain in 2009, according to the National Fiscal Administration Agency submitted to ZF.
The sum represents advance taxes for 11 months for the record profits of 2008. In line with the Fiscal Code, banks during the year make quarterly payments in advance, on the basis of previous year's profit. For the entire last year, banks' profit reached 4.4bn RON (1.2bn euros), while for 2009 a six times lower income is projected, namely 200m euros.
Under the circumstances, the budget next year loses a significant part of these resources as banks will pay much lower profit taxes. Practically, banks this year paid profit tax, despite having registered smaller incomes or even losses, which amounts to a "credit" for the Finance Ministry until the moment of regularisation.
Fiscal consultants consider regularisation, through tax payback, can and as a rule is avoided by offsetting sums paid in addition with future debts taking into consideration the "unfortunate" experiences related to VAT refunds.
Banks also benefited from "credit" from the part of the state in 2008, paying in the first phase taxes for profits generated in 2007, of 2.5bn RON (750m euros), much lower than in 2008.
It was not only commercial banks that helped the state this year by paying profit taxes, but the National Bank as well, paying profit tax of around 1bn RON.
Banks pay taxes for profits calculated in line with Romanian Accounting Standards (RAS), and after the first 9 months cumulated profits of the entire banking system stood at 680m euros.
Profit generated by banks after the first 9 months is over five times lower than the figure reached after the first 9 months of 2008, when the banking system posted net profits of 3.6bn RO
