New tax rates in romania in 2023
O. G. no. 16/2022 amended the Fiscal Code, therefore I present below the main provisions of the normative act.
1. Dividend tax – the changes take effect on January 1, 2023
Starting from January 1, 2023, the tax rate for dividends distributed/paid between Romanian legal entities, as well as for those distributed/paid to non-residents, is increased from 5% to 8%.
2. Microenterprise income tax – changes come into effect on January 1, 2023
Microenterprise income tax becomes optional.
A Romanian company can opt for the application of the microenterprise income tax if it cumulatively meets the following conditions on December 31 of the previous year:
- the revenues achieved did not exceed the equivalent in lei of 500,000 euros (modified condition – previously the ceiling was 1,000,000 euros);
- the social capital is owned by persons other than the state and administrative-territorial units – according to the Fiscal Code (unmodified condition);
- is not in dissolution, followed by liquidation, registered in the commercial register or in the courts, according to the law (unmodified condition);
- achieved revenues, other than consulting and/or management, in a proportion of more than 80% of total revenues (newly introduced condition);
- has at least one full-time employee active (newly introduced condition);
- has associates/shareholders who hold more than 25% of the value/number of participation titles or voting rights in no more than three Romanian legal entities that qualify to apply the tax system on the income of micro-enterprises (newly introduced condition);
The tax rate on the income of micro-enterprises is 1% (the 3% rate is repealed).
In conclusion, if a micro-enterprise achieves revenues greater than 500,000 euros/ does not have full-time employees or the share of revenues from consulting and/or management in total revenues is over 20% inclusive, during a fiscal year, it owes tax on profit starting from the quarter in which these limits were exceeded, because it no longer meets the conditions of the microenterprise tax.
The profit tax rate is 16%.
3. Special provisions for part-time employment contracts – the changes enter into force on August 1, 2022
The social security contribution owed by natural persons who obtain income from wages or wages assimilated to wages, based on an individual full-time or part-time employment contract cannot be lower than the level of the social security contribution calculated by applying the CAS rate on the gross minimum basic salary per country in force in the month for which the social insurance contribution is due, corresponding to the number of working days in the month in which the contract was active.
It applies starting with the income related to the month of August 2022.
In conclusion, for part-time work contracts, taxes will be calculated and paid at the level of the minimum wage in the country, if they are below the level of these taxes.
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