Tax Regulations Regarding Micro-Entrepreneurs in Romania in the Current Context

Abstract

Currently, in Romania there are two systems of taxation of the incomes and profits of companies - taxation on the income of micro-enterprises and taxation of the profit of companies that are not considered micro-enterprises from a fiscal point of view. The year 2023 brought many changes in the fiscal system of micro-enterprises in Romania. These changes concern the tax rate, respectively the alignment to a single tax rate, unlike the previous periods when there were two tax rates, depending on the number of employees. If in 2022 the tax was 1% for micro-enterprises that have at least one employee and 3% for those that have no employees, by Ordinance 16/2022, starting from January 1, 2023, the tax facility through which enterprises without employees paid tax on 3% income. Starting from January 1, 2023, by Ordinance No. 16/ 2022 of July 15, 2022, the turnover ceiling up to which companies fall under the micro-enterprise income tax drops from 1,000,000 euros to 500,000 euros. Thus, companies that obtain an income of over 500,000 euros will switch to a profit tax of 16%, from the quarter following the one in which this ceiling was exceeded. At the same time, micro-enterprises that do not have any employees on December 31, 2022 will become profit tax payers, starting on January 1, 2023. Companies that from January 1, 2023 leave the micro-enterprise income tax regime must notify ANAF by date of March 31, 2023. Starting from the year 2023, if during a fiscal year a micro-enterprise achieves revenues greater than 500,000 euros or the share of revenues from consulting and/or management in total revenues is over 20% inclusive, it owes profit tax starting from the quarter in which any of these limits have been exceeded. Also, if, during a fiscal year, a micro-enterprise no longer fulfills the employee condition, it owes profit tax starting from the quarter in which this condition is no longer met. This article aims to present the changes brought by 2023 regarding the taxation of micro-enterprises in Romania, but also a comparative study with previous years, as well as a comparison with some European systems regarding the taxation of micro-enterprises, respectively in France, Italy, the Netherlands and Germany.