The new Fiscal Code includes significant changes for micro enterprises. The new changes will apply starting with January 1, 2016. Starting with this date, the limit at which an individual who wants to register as a micro enterprise will increase to 100,000 euros. Also, this type of company will have a differentiated tax rate system. Our team of Romanian accountants can help you prepare your micro enterprise for these tax changes.
Acceptance to the micro enterprise regime
Starting with 2016 the limit at which an individual will be able to register as a micro enterprise in Romania will increase from 65,000 euros to 100,000 euros. This applies to the income made during the fiscal year: if the micro enterprise produces more than 100,000 euros profit during one fiscal year from its activities or from consultancy and management activities, then it will have to pay a profits tax of 16%. The tax will be calculated and paid starting with the quarter in which the tax limits were exceeded.
Until the end of 2015 the current provisions remain in force: a micro enterprise can register income to a maximum value of 65,000 euros (its equivalent in RON).
The new rates for taxing micro enterprises
This new taxation rate for micro companies is not the only change planned for these small companies. Starting with 2016 they will also have to pay differentiated taxes, according to the number of employees:
- 1% for at least two employees;
- 2% for one employee;
- 3% for no employees.
The new Fiscal Code also states that if the micro enterprise makes new employments during one calendar year, the tax rate will be adjusted accordingly starting with the quarter when the change occurred. Micro enterprises with one or two employees who terminate the existing work during one quarter will have to hire new employees in order to be included in its specific taxation box. Currently, micro enterprises are taxed at a 3% rate regardless of the number of employees they have.