Taxes

A Look into the Future: Romania's Groundbreaking Tax Reforms for Businesses by 2024

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.

2024 B2B e-invoicing regime in Romania: New Guidelines and Penalties

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.

New tax rates in romania from 1 january 2023

O. G. no. 16/2022 amended the Fiscal Code, therefore I present below the main provisions of the normative act.

 1. Dividend tax - the changes take effect on January 1, 2023

Starting from January 1, 2023, the tax rate for dividends distributed/paid between Romanian legal entities, as well as for those distributed/paid to non-residents, is increased from 5% to 8%.

2. Microenterprise income tax - changes come into effect on January 1, 2023

How to pay 1% taxes for a micro-enterprise in Romania

Create a  micro-enterprise in Romania and pay 1% taxes?

The micro-enterprise tax is computed as follows:

  • 1% for micro-enterprises with at least one employee*

 A reduced rate of 1% is applicable for the newly set up Romanian companies having at least one employee and being incorporated for a minimum period of 48 months and whose shareholders/associates did not hold participation titles in other legal entities. This reduced tax rate is only applied to the first 24 months since the registration date of the legal entity.

The micro enterprise with 1 percent tax till 1 million euro creates possibilities in Romania

Nr. 20180503

For company creation in romania mail: frjacobs@telenet.be

What taxes do investors in Romania pay for a micro enterprise created in Romania ?

In 2019, Romanian micro-enterprises pay income tax, according to Title III of the Fiscal Code. The tax rate is 1% for micro-enterprises with at least one employee and 3% for those that do not have employees. Company creation in Romania becomes interesting from a tax point of view.

The tax rate for a micro enterprise with one full-time employee amounts to 1% in Romania

The revenue threshold of a micro enterprise will be EUR 1 million, from January 1, 2018. The tax rate for a micro enterprise, with one full-time employee, amounts to 1%, whereas the tax rate for micro enterprises with no employees reaches 3%.

According to the latest changes in the Fiscal Code,  a newly established legal entity is required to follow the micro-enterprise tax regime starting with the first fiscal year and will remain under this tax regime if it meets all of the following criteria:

Tax exemption for ICT employees in Romania

The procedure regarding the exemption from income tax for IT employees 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: