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Tax release for companies with positive or increasing equity, from the 1st of January 2021

For a clearer understanding of the concept of equity, it should be noted that from an accounting point of view, equity is the residual interest of shareholders or associates in the assets of a company, after deducting all its debts or, more simply, the difference between assets and debts of a company.

The main elements that make up a company's assets are represented by:

• the share capital, the minimum level of which is established by the Companies Law 31/1990;
• capital account bonuses;
• reserves;
• annual profits or losses recorded by the company.
From a legal point of view, according to Law 31/1990, the equity of a company, also called net equity, represents the difference between the total assets and the total debts of the companies.

On 4 September 2020, some fiscal measures were adopted were published in the MOF 817, in order to stimulate the maintenance / increase of equity, as well as to complete some regulatory acts which we describe below. The elements taken into consideration for the determination of the adjusted net equity are those presented in the annual financial statements / annual accounting reports.

Measures applicable from 1 January 2021, for the period 2021-2025:

The following categories of taxpayers:

  • Income tax payers
  • Income taxpayers of micro-enterprises
  • Specific taxpayers

benefit from tax reductions as it follows:

a) 2%, if the net assets equity, in the year for which the tax is due, is positive.

Note: For taxpayers who, according to the provisions of the law, are obliged to establish the share capital, the net assets equity must simultaneously satisfy the condition of being at the level of at least half the subscribed share capital.

b) if the company registers an annual increase in the adjusted equity of the year for which it owes the tax compared to the  theadjusted equity recorded in the previous year and at the same time satisfies the condition referred to in lett. a), the discounts have the following values:


Percentage of tax reduction

Appropriate annual growth intervals for equity


up to 5% included


over 5% and up to 10% included


over 10% and up to 15% included


over 15% and up to 20% inclusive


over 20% and up to 25% included


over 25%

The annual increase in adjusted shareholders 'equity in the year for which the tax owes compared to the adjusted shareholders' equity recorded in the previous year is determined according to the following formula:

CCPA_year / previous year = (CPA of the year for which the tax is due - CPA recorded in the previous year) x 100 / CPA recorded in the previous year
where is it:
CCPA - annual increase in adjusted equity;
CPA - Adjusted Equity;

c) 3%, if it records an increase of adjusted equity of the year, compared with the equity in 2020, beyond the levels in the table below and if at the same time it satisfies the condition set out in lett. a).

The year for which you owe the tax

Minimum adjusted equity increase percentage









The above provisions apply starting from the year 2022, respectively starting from the modified fiscal year starting in 2022.

The increase in adjusted equity in the year for which it owes the tax compared to the adjusted equity recorded in 2020 is determined according to the following formula:
CCPA_year / 2020 = (CPA of the year for which it owes the tax - CPA registered in 2020) x 100 / CPA registered in 2020
where is it:
CCPA - increase in adjusted shareholders' equity;
CPA - Adjusted Equity.


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