One of the common concerns for new entrepreneurs in Romania is the timing for a new company to distribute dividends. It is natural for business owners to be curious about the speed at which they can access their company's profits through dividends. Shareholders typically aim to receive their share of the profits at the earliest opportunity.
The key tax change targets IT workers earning wage income, affecting their income tax exemption cap.
What's the tax break for IT salaries?
Some IT staff enjoy higher take-home pay due to income tax exemption – they don't pay the 10% income tax.
Who gets the tax break?
Under new tax rules, the exemption applies to:
Romanian law allows new companies to distribute dividends quickly if they have profits. Let's look at how this works in practice.
Rules for Romanian Companies Paying Dividends
Romanian laws in 2024 let companies pay dividends yearly after approving financial statements, or quarterly throughout the year.
A new Romanian company can pay dividends soon after creation if it has profits. Companies can't pay dividends if they're losing money.
Create a micro-enterprise in Romania and pay 1% taxes in 2024
The micro-enterprise tax is computed as follows:
The procedure regarding the exemption from income tax for IT employees&employer was modified by Order of the Ministry of Finance no. 835/2015 which replaces the old legal framework (MFP Order no. 1479/2013 – repealed). The new regulations stipulate that the employees in this sector may be exempt from income tax only if they occupy certain positions, as defined by the law.
Starting July 30, the alumni working in this sector must be in one of the eight functions, as defined in the Annex of the Order 835/2015:
In the upcoming year of 2024, there will be notable changes in corporate taxation. The following are the main adjustments that will be put into effect.
Eligibility Criteria for Being Considered as a Micro-Enterprise in Romania
The most significant alterations pertain to the categorization of businesses as micro-enterprises.
Is de Roemeense wereld van e-facturatie klaar om veroverd te worden?
Stop met zoeken! We zijn verheugd je onze video "E-factura in Roemenië: A Crash Course", die dient als complete handleiding voor de aanpassing aan de verplichte invoering van e-facturatie. Deze boeiende video laat mijn kennis zien en biedt een uitgebreide, stap-voor-stap uitleg over het effectief beheren van de nieuwe fiscale rapportageprocedures.
Romania has taken a significant leap toward modernizing financial transactions with the implementation of the mandatory RO e-invoicing system. Since July 2022, the system named e-Factura has become a pivotal structure in business-to-government (B2G) transactions, as well as in high fiscal-risk business-to-business (B2B) interactions. With a continuous advancement towards complete digital invoicing, January 2024 marks a landmark when all B2B transactions will require e-invoice compliance.
Romania has recently implemented new regulations and penalties for its upcoming B2B e-invoicing regime, which will be launched in two phases in 2024. The government emergency ordinance 115/2023 introduces several amendments, including exemptions for simplified invoices, exports, non-resident counterparties, and B2C transactions. Additionally, the grace period for fines has been extended until July 2024.
