News in the calculation of income tax for micro-enterprises of 1% or 3% in Romania

If, by the deadline of April 15, 2024, you have decided that you qualify for the application of the micro-enterprise taxation regime, and that you still opt for this regime, because:

The company is the only one that applies this regime among all Romanian legal entities in which an associate/shareholder holds, directly or indirectly, more than 25% of the value/number of participation titles or voting rights and was established by the associates/shareholders to apply tax on the income of micro-enterprises;

The company did not exceed, on 31.12.2023, together with its related enterprises, the threshold of total revenues of 500,000 EURO;

On 31.12.2023, the company also met the other conditions for applying the regime :

  • its share capital is owned by persons other than the state and administrative-territorial units,
  • the company is not in liquidation followed by liquidation,
  • the company has achieved revenues, other than those from consulting and/or management, with the exception of revenues from fiscal consulting, in a proportion of more than 80% of total revenues,
  • the company has at least 1 employee,
  • the company does not carry out excluded activities,
  • the company has submitted the annual financial statements for the years prior to 2023 by 31.03.2024 at the latest);

The company fulfills these conditions throughout the first quarter of 2024, then the company owes, on April 25, 2024, tax on the income of micro-enterprises, for the calculation of which it must take into account several new rules:

The applicable tax rate can be 1% or 3% in Romania

If we exceed the ceiling of 60,000 EURO in total income or generate income from activities classified under CAEN codes mentioned by Law 296/2023 (i.e., IT, HoReCa, legal, medical activities), then the tax rate due is 3% for all income and for the whole quarter.

contact me +32 478 331 799

Also read: