Microenterprises Tax 2016
Recently, the Romanian Fiscal Code was substantially amended – starting 01.01.2016, a new Law (227/2015) will replace the current Fiscal Code (Law 517/20013).
There will be some taxes which will decrease (the main ones are the VAT rate and the dividend tax), but there will be some taxes which will significantly increase, like the local tax on buildings.
Microenterprises Tax 2016
Microenterprises are the companies having a turnover less than 65,000 EUR and less than 10 employees in the previous year. They will be subject of following modifications:
The companies running activities of exploration, development and exploitation of the oil and gas deposits cannot be microenterprises;
The companies exceeding the 65,000 EUR turnover threshold or whose incomes from consulting or management services exceed 20% of the total incomes, must pay profit tax starting the quarter when the mentioned limites have been exceeded, by taking into consideration the incomes and expenses starting with that quarter, and not from the beginning of the fiscal year, as in present;
A new reduced rate of 1%of the incomes will be introduced for the microenterprises meeting some conditions:
have at least one employee, with the condition that the employment should be made within 60 days from the set up;
they are established for a period of more than 48 months;
the shareholders of the microenterprises have not owned shares in other legal entities;
The 1% rate will be applicable for the first 2 years, until the end of the quarter in which it ends the period of 24 months.
Modification of the tax regime from corporate income tax to microenterprise tax will be communicated to the tax authority till 31st of March of next year – currently the deadline is 31st of January of next year, 2016.