{"id":30106,"date":"2024-05-17T09:36:49","date_gmt":"2024-05-17T06:36:49","guid":{"rendered":"https:\/\/legalbadger.org\/?p=30106"},"modified":"2025-03-20T16:31:41","modified_gmt":"2025-03-20T13:31:41","slug":"micro-enterprise-conditions-in-romania-2025","status":"publish","type":"post","link":"https:\/\/legalbadger.org\/en\/legal-en\/business-law\/micro-enterprise-conditions-in-romania-2025\/","title":{"rendered":"Micro-enterprise Conditions in Romania 2025"},"content":{"rendered":"

The micro-enterprise tax regime is an optional tax system that offers tax advantages for small companies. This regime has undergone numerous changes over the years, and 2025 also brings a number of novelties and adjustments to the conditions of application.<\/span><\/p>\n

Below we look at the conditions a company must meet to be considered a microenterprise in 2024, as well as the tax implications of this status.<\/span><\/p>\n

What are the conditions for being a microenterprise in 2025 in Romania?<\/b><\/h2>\n

Under Article 47 of the Tax Code, in order to qualify as a microenterprise in 2024, a company must cumulatively meet the following conditions as of December 31 of the previous tax year:<\/span><\/p>\n

    \n
  1. The company must have realized revenues that do not exceed the equivalent in RON of \u20ac250,000, or \u20ac100,000 as of January 1, 2026. To determine this ceiling, the exchange rate valid at the close of the financial year in which the income was recorded will be used.<\/li>\n
  2. The company’s share capital must be held by persons other than the State and administrative-territorial units.<\/li>\n
  3. The company must not be in the process of dissolution, followed by liquidation, registered in the commercial register or with the courts.<\/li>\n
  4. The company must have at least one employee, with the exception of the situation provided for in Art. 48 para. (3) of the Tax Code, which allows this condition to be fulfilled within 30 days from the date of registration in the case of newly established companies.<\/li>\n
  5. It has associates\/shareholders holding, directly or indirectly, more than 25% of the value\/number of the equity securities or voting rights and is the only legal person established by the associates\/shareholders to apply the provisions of this Title.<\/li>\n
  6. It has filed its annual financial statements on time, if it is required to do so by law.<\/li>\n<\/ol>\n

    In addition to these conditions, there are a number of restrictions on the type of activity carried out. Thus, Romanian legal entities operating in areas such as banking, insurance and reinsurance, capital markets (except for insurance intermediaries that fulfill certain cumulative conditions), gambling, exploration and exploitation of oil and natural gas deposits cannot opt for the micro-enterprise regime.<\/p>\n

    Tax rates on micro-enterprise income in 2025<\/b><\/h3>\n

    Once a company qualifies as a micro-enterprise, it will be subject to a specific tax regime, with differentiated tax rates depending on the level of income and the type of activity carried out. As of January 1, 2024, the tax rates on microenterprise income are:<\/p>\n

    a) 1% for micro-enterprises with revenues up to and including \u20ac60,000 and not active in certain fields such as IT, consultancy, hotels, restaurants, etc.<\/p>\n

    b) 3% for micro-enterprises with revenues above 60. 000 euro or which carry out activities, principal or secondary, corresponding to CAEN codes: 5821 – Computer games publishing activities, 5829 – Publishing activities of other software products, 6201 – Custom software development activities (customer oriented software), 6209 – Other information technology service activities, 5510 – Hotels and similar accommodation activities, 5520 – Holiday and short-stay accommodation facilities, 5530 – Caravan, camping and camping sites, 5590 – Other accommodation services, 5610 – Restaurants, 5621 – Event catering activities, 5629 – Other food service activities n.e.c. n.e.c., 5630 – Bars and other food serving activities, 6910 – Legal activities – only for incorporated companies that are not fiscally transparent entities, set up by lawyers according to law, 8621 – General medical practice activities, 8622 – Specialized health activities, 8623 – Dental practice activities, 8690 – Other human health activities.<\/p>\n

    According to the legislative amendments introduced by the Government Ordinance no. 156\/2024, as of January 1, 2025, the 3% tax rate will apply also to micro-enterprises carrying out their main or secondary activities corresponding to the following NACE codes: 6210 – Custom software activities (customer oriented software), 6290 – Other information technology service activities, 5611 – Restaurants, 5612 – Activities of mobile food service establishments, 5622 – Other food service activities n.e.c.<\/p>\n

    These tax rates are applied to the tax base determined in accordance with Article 53 of the Tax Code. Broadly speaking, the tax base is calculated by taking into account the total income recorded, from which a number of non-taxable incomes are subtracted, such as income from the production of fixed assets, income from subsidies, income from provisions or from depreciation adjustments. Also, in certain situations, items similar to income, such as favorable exchange rate differences recorded at the end of the fiscal year, may be added to the tax base.<\/p>\n

    It is important to note that, although the micro-enterprise regime may seem advantageous because of its low tax rates, it also entails certain limitations and obligations. For example, micro-enterprises cannot opt to pay corporation tax during the tax year, but only from the following tax year. In addition, if during a tax year a microenterprise realizes revenues in excess of \u20ac250,000, or \u20ac100,000 as of January 1, 2026, it owes corporate income tax as of the quarter in which this limit was exceeded, without the possibility to opt for the following period to apply the provisions on the tax on microenterprise income.<\/p>\n

    The micro-enterprise tax regime is an attractive tax option for small companies, offering advantageous tax rates and a number of administrative simplifications. However, before opting for this regime, it is important for each company to carefully consider whether it meets the legal conditions and what the tax impact will be in its particular case.<\/p>\n

    Also, given the legislative dynamics and the frequent changes to the Tax Code, it is advisable for companies to keep themselves constantly informed of any new developments and to seek the services of tax lawyers in Romania<\/a> in order to make informed decisions and avoid potential risks.<\/p>\n

    In conclusion, the micro-enterprise regime may be a viable option for many companies in 2025, but the choice should be made after careful analysis of the eligibility conditions, tax implications and the specific needs of each business.<\/p>\n","protected":false},"excerpt":{"rendered":"

    The micro-enterprise tax regime is an optional tax system that offers tax advantages for small companies. This regime has undergone numerous changes over the years, and 2025 also brings a number of novelties and adjustments to the conditions of application. Below we look at the conditions a company must meet to be considered a microenterprise […]<\/p>\n","protected":false},"author":1,"featured_media":24499,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_ppma_block_editor_authors":""},"categories":[153,155],"tags":[],"ppma_author":[119],"class_list":["post-30106","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business-law","category-tax-law"],"yoast_head":"\nMicro-enterprise Conditions in Romania 2025 - Legal Badger<\/title>\n<meta name=\"description\" content=\"Micro-enterprise Conditions in Romania 2025\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/legalbadger.org\/en\/legal-en\/business-law\/micro-enterprise-conditions-in-romania-2025\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Micro-enterprise Conditions in Romania 2025 - 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