Income tax for micro-enterprises starting January 1, 2024

 Through Law 296/2023, the Government made significant changes to this taxation regime, as follows:

 

If in 2023 there was only one tax rate, namely 1%, from 2024 there will be two tax rates, respectively:

 ∘ 1% for micro-enterprises that achieve revenues that do not exceed 60,000 euros inclusive and that do not carry out the activities mentioned below;

∘ 3% for micro-enterprises that:

 ▪ achieve incomes over 60,000 euros and up to 500,000 euros; or

▪ carries out main or secondary activities, corresponding to CAEN codes:

 • 5821 – Computer game editing activities,

• 5829 – Editing activities of other software products,

• 6201 – Custom software creation activities (customer-oriented software),

• 6209 - Other information technology service activities, 5510 - Hotels and other similar accommodation facilities,

• 5520 – Accommodation facilities for holidays and short periods,

• 5530 – Caravan parks, campsites and camps,

• 5590 – Other accommodation services,

• 5610 – Restaurants,

• 5621 – Food activities (catering) for events,

• 5629 – Other food services n.e.c.,

• 5630 – Bars and other activities serving drinks,

• 6910 – Legal activities – only for companies with legal personality that are not fiscally transparent entities, established by lawyers according to the law,

• 8621 – General medical assistance activities,

• 8622 – Specialized medical assistance activities, 8623 – Dental assistance activities,

• 8690 – Other activities related to human health.

 ∘ The fiscal limits in euros mentioned above are checked based on the cumulative recorded income since the beginning of the fiscal year. The exchange rate for determining the euro equivalent is the one valid at the end of the previous financial year.

 ∘ In order to meet the conditions regarding the level of income provided for in the Fiscal Code, art. 47 para. (1) lit. c) and f), in art. 51 para. (1), (41) and (42) and to art. 52 para. (1) the same elements that constitute the taxable base provided for in art. 53.

  Other changes regarding this tax regime are the following:

 ∘ If, during the fiscal year, the revenues made by a micro-enterprise exceed the ceiling of 60,000 euros or the micro-enterprise starts to carry out one or more of the activities specified above, then, starting from the quarter in which such situations are recorded, applicable is the tax rate of 3%;

 ∘ If, during the fiscal year, a micro-enterprise no longer carries out one or more of the activities presented above and the revenues do not exceed the level of 60,000 euros, starting from the quarter in which such situations are recorded, the applicable tax rate is 1%;

 ∘ In the event that Romanian legal entities carrying out activities corresponding to the CAEN codes presented above also obtain income from other activities, apart from those corresponding to these CAEN codes, the 3% tax rate is also applied to the income from these other activities;

 ∘ Micro-enterprises that become profit tax payers as a result of not fulfilling the conditions provided for in art. 47 or as a result of the exercise of the option, communicates to the competent fiscal bodies the exit from the taxation system on the incomes of micro-enterprises, by March 31 of the following fiscal year inclusive.

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