If you want to set up a micro-enterprise in Romania and need to know the tax system, this article can be useful to you. Please explore the following lines and then get in touch with our Romanian accountants for personalized services.
Table of Contents
What is the tax legislation applicable in Romania?
The Fiscal Code.
What is the status of a micro-enterprise in Romania?
A micro-enterprise in Romania is a small type of business that is subject to a specific taxation.
What is the tax rate applicable to micro enterprises in Romania?
1% flat tax is imposed on annual turnover to qualify for this tax regime.
How is the 1% flat tax rate imposed on micro enterprises in Romania?
Considering the taxable revenue base, and not the profit.
What is the annual threshold for micro enterprises in Romania
EUR 100,000.
What happens if the micro-enterprise exceeds the EUR 100,000 annual threshold?
The micro-enterprise in Romania will be subject to 16% corporate income tax.
What are the conditions to qualify for this tax regime as a micro enterprise in Romania?
- must have at least one full-time employee,
- the share capital must be owned by private individuals/shareholders,
- the micro enterprise must have a specific business code to qualify for this tax regime.
NOTE: If a micro-enterprise does not have at least one employee, the company cannot qualify for the special tax regime available in Romania.
Are there any tax deductions for micro enterprises in Romania?
Micro-enterprises cannot deduct business expenses due to the special tax regime imposed for such entities in Romania.
NOTE: Tax deductions apply to companies paying a corporate income tax of 16%.
Can a shareholder own more than just one micro-enterprise in Romania and benefit from the same tax regime?
One must determine which of the companies remains within the micro-enterprise tax regime.
Who collects the taxes in Romania?
The National Agency for Fiscal Administration – ANAF.
How do micro enterprises pay the 1% flat tax rate?
Quarterly.
What is the financial year in Romania?
The calendar year – from January 1st to December 31st.
NOTE: In Romania, some corporations are allowed to change the financial year and adopt a specific fiscal scheme.
Should you require further information in relation to accounting services for micro-enterprises or any assistance in the accountancy field in Bucharest and audit in Romania, please contact our Romanian accounting firm. We can explain to you what Romanian micro company tax entails.