The National Council for SMEs contests the new time limit announced by the Government for the entry into force of the advance profit tax payment, in 2012, and propose to postpone the implementation of this measure for microenterprises until 2020, because they need several years to recover from the crisis. "We propose a different approach for microenterprises, for which the annual advance profit tax payment should be postponed until 2020.
Microenterprises will not recover fast enough in the next years to be able to start paying advance profit tax," Ana Bontea, manager of the National Council for SMEs, said at a news conference Friday.
Representatives of small entrepreneurs consider that introducing this measure in 2012 is inappropriate, as long as access to financing remains limited and companies need cash. "Postponing the introduction of the measure would enable more companies to recover after the period of crisis and would help revive the SME sector," said Ovidiu Nicolescu, President of the Council.
According to the president of the National Council for SMEs, the implementation of the measure would bring a new wave of bankruptcies among microentreprises. ''It is abnormal to anticipate what profit you will have when you just start the year. If last year was a good year and you had profit, and your business no longer works as well, you should, because the law obliges you to do so, to pay profit tax just like in the good year. This does nothing more than close down the business of many entrepreneurs, the number of bankruptcies will increase," Nicolescu explained
On Wednesday, the government decided that the entry into force of the advance payment of profit tax should be postponed until 2012, although the Ministry of Finance had elaborated a draft emergency ordinance proposing to postpone the payment until 2015. "As we have promised the busin
