From the year 2024, a Romanian legal person can apply the tax regime on the income of micro-enterprises if on December 31 of the previous fiscal year:

• achieved incomes that did not exceed the equivalent in lei of 500,000 euros. The exchange rate for determining the equivalent in euros is the one valid at the end of the financial year in which the revenues were recorded; This limit regarding the revenues achieved is verified by taking into account the revenues achieved by the Romanian legal entity, cumulated with the revenues of the enterprises related to it, as are defined according to the provisions of Law no. 346/2004 regarding the stimulation of the establishment and development of small and medium-sized enterprises, with subsequent amendments and additions. Related parties are verified on December 31, 2023;
• its social capital is owned by persons other than the state and administrative-territorial units;
• is not in dissolution, followed by liquidation, registered in the commercial register or in the courts, according to the law;
• earned income, other than those from consultancy and/or management, with the exception of income from tax consultancy, corresponding to CAEN code: 6920 - "Accounting and financial audit activities; consulting in the fiscal field", in the proportion of over 80% of total revenues;
• has at least one employee, except for the situation provided for in art. 48 para. (3), respectively in the case of a micro-entity established during the year, which has the obligation to hire within 30 days from the date of registration with the Trade Register. By employee, we mean the person employed with a full-time individual employment contract, according to Law no. 53/2003 – Labor Code, republished, with subsequent amendments and additions.

The condition is also considered fulfilled in the case of micro-enterprises that:

• have people employed with individual part-time employment contracts if the fractions of the norm provided in them, added up, represent the equivalent of a whole norm;
• they have signed management or mandate contracts, according to the law, if their remuneration is at least at the level of the minimum gross basic salary per country guaranteed in payment;
• has associates/shareholders who hold, directly or indirectly, more than 25% of the value/number of participation titles or voting rights and is the only legal entity established by the associates/shareholders to apply this regime. Associates/shareholders of the Romanian legal entity that hold, directly or indirectly, more than 25% of the value/number of participation titles or voting rights, both in the analyzed Romanian legal entity and in other Romanian legal entities that meet the conditions for the system of taxation on the incomes of micro-enterprises, must establish, by March 31, a single Romanian legal entity that applies the micro-regime. Romanian legal entities that have not been established by the associates/shareholders, by the deadline of March 31, are subject to the profit tax;
• submitted the annual financial statements on time, if he has this obligation according to the law.

Tax on the income of micro-enterprises in 2024 in Romania

By Law 296/2023, significant changes were made to the Fiscal Code, and some of them have implications for the tax regime on the income of micro-enterprises.

If in 2023 a single tax rate was applied, namely 1%, from 2024 two tax rates are applicable, 1% and 3%.

The 1% rate will be applied to micro-enterprises that achieve during the year revenues that do not exceed 60,000 euros inclusive and that do not carry out the activities mentioned below.

The 3% rate will apply to micro-enterprises that:

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

• carries out main or secondary activities, corresponding to the following CAEN codes:

• - 5821 – Computer game editing activities,

• - 5829 – Editing activities of other software products,

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

• - 6209 – Other service activities related to information technology,

• - 5510 - Hotels and other similar accommodation facilities,

• - 5520 – Accommodation facilities for holidays and short periods,

• - 5530 – Parks for caravans, 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 – Medical assistance activities

• - 8623 – Dental assistance activities,

• - 8690 – Other activities related to human health.

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

If, during the fiscal year, the revenues achieved by a micro-enterprise exceed the ceiling of 60,000 euros or the micro-enterprise starts to carry out one or more of the previously mentioned activities, it will apply the rate of 3% from the quarter in which such situations are recorded.

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.