The micro-enterprise income tax is 1%, eliminating the 3% tax rate for micro-enterprises without employees, which switch to a profit tax of 16%.
There are also changes in the case of entrepreneurs who own shares in several micro-enterprises. If, during the fiscal year, any of the associates/shareholders of a micro-enterprise holds more than 25% of the value/number of shares or voting rights in more than 3 micro-enterprises, those entrepreneurs must choose which micro-enterprise (s) will be removed from micro tax regime.
A VAT payer who during the previous calendar year does not exceed the exemption threshold of RON 300,000 can deregister as VAT payer and apply the special exemption regime, provided that as at the request date the entity did not exceed the exemption threshold for the current year. The request can be submitted to the competent tax authorities in the first 10 days of each month.
Considering the current legislation, intra-community acquisitions of goods that, among other criteria, do not exceed during the current calendar year or did not exceed during the previous calendar year the threshold of EUR 10,000 (the equivalent of RON 34,000). are considered non-taxable transactions.
The turnover threshold for switching from a quarterly VAT payer to a monthly payer is EUR 100,000 (the equivalent of RON 494,740).
Taxpayers for whom the net income is determined based on income norms and on prior year recorded an annual gross income higher than the equivalent in EUR 25,000 (RON 123,282), have the obligation to determine the annual net income starting with the following fiscal year.
The location related to the activity performance is considered being in Romania if, during the previous calendar year, the value of the TBE services and long-distance intra-community deliveries of goods does not exceed EUR 10,000 (equivalent of RON 46,337). If the annual threshold of EUR 10,000 is exceeded, the location for remote sales is considered the country where the goods are sent.
For the year 2023, the thresholds are RON 1,000,000 for intra-EU shipments of goods and RON 1,000,000 for intra-EU acquisitions of goods, respectively.
Law no. 301 / 2022 amends and completes Law no. 227/2015, providing that the reduced rate of 5% is applied to the sales to the natural persons of the domestic buildings, which do not exceed a usable area of 120 square meters, excluding outbuildings and the land under them, which do not exceed RON 600,000 without VAT.
Tax on dividends increased from 5% to 8%, since January 1, 2023, both for individuals and legal entities.
The dividends distributed based on the interim financial statements prepared during 2022 are taxed with 5%, without recalculation of the tax on the respective dividends, after their regularization based on the annual financial statements related to the financial year 2022, approved according to the law.
The turnover threshold is RON 4,500,000.
In 2023, the minimum economy salary increased to gross RON 3000.
From January 1, 2023 (until 2028), the minimum gross salary in construction companies increased to RON 4,000.
The environmental tax is declared monthly and paid once in January, as annual cumulated value based on the environment statement prepared as at December, if the entity does not meet the minimum recycling objectives.
The taxable value of buildings owned by legal entities represents the value as of December 31 of the year prior to the year for which the tax is due, The taxable value of the building is updated once every 5 years based on the building valuation report prepared by an independent, authorized appraiser. If the property owner has not updated the taxable value in the last 5 years prior to the reference year, the tax rate is 5%.
We recommend the entities to require voluntarily the tax certificate, at least at financial year end, for getting information regarding the status of their submitted declarations, any overdue and late tax payments in order to mitigate the risk of arising penalties and late payment interest by the end of the year.