Boştină & Associates decides to change into a limited liability law firm

FEBRUARY 2009

Bostina & Associates has taken the decision to change its statute into a limited liability law firm, the provisions of Government Emergency Ordinance no. 159/2008 enabling a clearer tax recording of incomes.

Doru Catalin Bostina: “We have taken this decision for strictly fiscal reasons, the new ordinance clearing up certain matters related to book-keeping and taxation of lawyers’ income”.

G.E.O. no. 159/2008 on the amendment and supplementation of Law no. 51/1995 for the organization and exercise of the legal profession states that the tax system applicable to the income earned by the professional limited liability company is that of the tax on the income from self-employment as per Title III chapter II of the Tax Code. According to the provisions of art. Moreover, the income tax is paid by each associate for his/her own income as provided by par. 8, art. 5^1 of G.E.O. no. 159/2008 on the amendment and supplementation of Law no. 51/1995 for the organization and exercise of the legal profession, the annual income/lossbeing distributed to the associates, in proportion to the interest corresponding to the contribution according to the association agreement.

According to the Tax Code, the income from the professions is the income earned from the exercise of the medical, legal profession, from the profession of notary, financial auditor, tax consultant, chartered accountant, authorized accountant, securities investment consultant, architect or of other regulated professions, carried out independently, under the conditions of the law.