More info mail frjacobs@telenet.be

The micro company is a very interesting company as the tax levels are very low. It can be used to save money as it is a company it is fully legal (piggy bank). With this company you can invest and when you make the pension you simply dissolve it and then the remaining money will be transferred after legal dissolvation in conformity with law 31/1990 to your personal account.

1. Tax Rate:

   • 3% for micro-companies with no employees
   • 1% for micro-companies with at least one full-time employee

2. Eligibility Criteria:

   • Annual turnover must not exceed 500,000 euros
   • The company must not operate in banking, insurance, gambling, oil and gas sectors
   • Less than 20% of revenue should come from consulting and management activities

3. Transition:

   • If a company exceeds the 500,000 euro threshold during the fiscal year, it switches to the standard corporate income tax regime (16% on profits)

4. Reporting:

   • Micro-companies file quarterly tax returns declaring their revenues

5. Dividend Tax:

   • An additional 8% dividend tax applies when profits are distributed to shareholders

6. Benefits:

   • This regime offers significant tax advantages compared to the standard 16% corporate tax rate
   • It's designed to stimulate small businesses and attract entrepreneurs to Romania

7. Limitations:

   • Shareholders can hold shares in a maximum of three micro-companies where they have at least 25% ownership

This tax system makes Romania an attractive location for small businesses and startups, providing a favorable environment for growth and development in the early stages of a company's lifecycle.

More info mail frjacobs@telenet.be

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