The tax system for microenterprises in Romania undergoes significant changes in 2024. This optional regime, designed for small companies, offers fiscal advantages but also comes with new conditions and limitations. The SRL is the most common form of business registration in Romania.
What are the conditions to be a microenterprise in 2024?
To benefit from the microenterprise status in 2024, a company must meet several requirements at the end of the previous fiscal year:
- Revenues under the equivalent of 500,000 euros
- Social capital held by private entities, not by the state
- Not in the process of dissolution or liquidation
- Over 80% of revenues must come from activities other than consulting and management (except for tax consulting)
- At least one employee (with certain exceptions for new firms, according to Article 48 paragraph (3) of the Fiscal Code)
- One microenterprise per shareholder group with over 25% participation
- Timely submission of annual financial statements
Certain activity fields, such as banking, insurance, or gambling, are excluded from this regime.
Tax rates on microenterprise revenues in 2024
Taxation is differentiated:
– 1% for revenues up to 60,000 euros inclusive (except for those engaging in activities such as IT, consulting, hotels, restaurants, etc.)
– 3% for revenues over 60,000 euros or for specific activities exempt from the 1% rate.
The taxable base includes registered revenues, with some exceptions such as subsidies or income from the production of fixed assets.
Although advantageous, the microenterprise regime imposes certain restrictions. For example, the transition to profit tax can only occur from the following fiscal year. Losing eligibility during the year leads to the application of profit tax from that quarter.
The microenterprise regime can be beneficial for many small companies in 2024, but it requires careful analysis. Given the complexity and dynamics of fiscal legislation, it is recommended to consult a Romania law firm to make informed decisions and avoid potential risks.
Companies should carefully assess whether this regime fits their specific needs, taking into account the new conditions and tax implications.
