What are the conditions for a company to remain/become a microenterprise | What taxation regime should I apply in 2023?

published in October 28, 2022

Government Ordinance 16/2022 introduced a series of amendments and additions to the Fiscal Code.

Thus, with the help of eticexpert.ro, we try to help you answer the question What tax regime should I apply in 2023?

But first, here are the main changes brought by OG 16/2022:

To generate income in a year of less than 500,000 euros, at the NBR exchange rate on the closing date of the year for which the income was generated.
The company's share capital is not owned by the state or administrative-territorial units.
The company is not in dissolution followed by liquidation as of December 31.
The company must have consulting income below 20% of total income for the year as of December 31
Has associates/shareholders who own over 25% of the shares/shares in at most 3 microenterprises
The company has at least one employee with 8 hours/day or there is an administration or mandate contract with an allowance at least equal to the minimum wage in the economy.

Starting with 01.01.2023 there is a single tax rate: 1% total income (the 3% rate disappears).

"It depends a lot on the volume of the company's activity"

"Each company must analyze its activity and especially correctly estimate what its future activity will be like. If, for example, the company is a service provider, in principle, it is more convenient to be a micro-enterprise. On the other hand, if the company trades, depending on the mark-up applied, it may be more convenient to switch to profit tax. If the company has a small turnover, it is possible that the resulting profit tax will be lower than the micro-enterprise income tax + salary taxes", concluded the tax consultant contacted by eticexpert.ro.