Taxes in Romania
Taxation in Romania for micro-enterprises has some changes in 2024. Through Law 296/2023, the Government made significant changes to Income tax for micro-enterprises in Romania :
If in 2023 there was only one rate for taxation in Romania, 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 taxation for micro-enterprises in Romania 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 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.
We check fiscal limits in euros based on cumulative yearly income. The exchange rate for determining the euro equivalent is the one valid at the end of the previous financial year.
Here are some other changes for income tax in Romania:
If a micro-enterprise’s revenue exceeds 60,000 euros or if it starts new activities, the tax in Romania for that quarter is 3%. Although, if a micro-enterprise ceases certain activities and its revenue remains below 60,000 euros, the tax rate for that quarter is 1%.
Moreover, when Romanian legal entities engage in activities related to the specified CAEN codes and also earn income from other activities, the 3% tax rate applies to the income from these additional activities as well.
However, small businesses will become profit taxpayers if they do not comply with the law or decide to leave the micro-enterprise tax system. In these cases, they must notify the tax authorities of their choice by March 31 of the next fiscal year.
If a micro-enterprise’s revenue exceeds 60,000 euros or it starts new activities, the tax rate in Romania is 3% from that quarter.
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