On November 11, 2024, Government Decision No. 1393/2024 was published in the Official Gazette, which brings significant changes to the Methodological Norms for the application of Law No. 227/2015 on the Fiscal Code.
These amendments target, among other things, the tax regime applicable to microenterprises, introducing essential clarifications for the correct application of tax on their income.
1. Clarification of the eligibility conditions for the micro-enterprise tax regime
To benefit from the microenterprise income taxation regime, a Romanian legal entity must meet certain conditions, including:
• Shareholding structure: Associates or shareholders must hold, directly or indirectly, no more than 25% of the value or number of participation titles or voting rights.
• Submission of financial statements: It is mandatory to submit annual financial statements on time for the financial year N-2 and, if applicable, for previous years.
These clarifications ensure uniform application of the tax regime for microenterprises and eliminate potential legislative ambiguities.
2. Calculation of direct and indirect holdings
The decision introduces practical examples for determining the direct and indirect participation shares of associates or shareholders in the share capital of the micro-enterprise. These examples facilitate the understanding of the calculation of participations, contributing to compliance with the eligibility conditions for the application of the specific taxation regime for micro-enterprises.
3. Exclusion of certain categories of legal entities from the micro-enterprise taxation regime
The decision details the categories of legal entities that cannot apply the taxation regime on microenterprise income, according to art. 47 para. (3) lett. f) – i) of the Fiscal Code. These include:
• Credit institutions: Banks, credit cooperative organizations, housing savings and loans banks, mortgage banks.
• Insurance and reinsurance companies: Insurance, reinsurance, insurance-reinsurance companies.
• Capital market entities: Stock or commodity exchanges, financial investment services companies, registry companies, depository companies.
This clarification is essential for the precise delimitation of entities that can benefit from the microenterprise tax regime.
4. Procedure for exiting the microenterprise income tax system
The decision details the situations in which micro-enterprises exit the income tax system, depending on whether or not they file their financial statements on time. This ensures a clear and legally compliant transition between the applicable tax regimes.
5. Establishing the tax base and tax rates
It specifies the method of calculating the taxable base and the applicable rates of 1% and 3% for various categories of micro-enterprises. It also lists the exceptions, specifying the legal entities that cannot apply the tax regime for micro-enterprises, according to the provisions of the Fiscal Code.
These legislative amendments aim to simplify the application of tax rules and eliminate ambiguities in the management of the tax regime for micro-enterprises. It is essential that all entities concerned carefully analyze the new provisions and adjust their tax practices accordingly, in order to ensure compliance and benefit from the facilities offered by the legislation in force.
