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1. The tax on micro-enterprises becomes compulsory for all businesses with
turnover below 500,000 euros the tax rate is only 3%
All companies with private capital that earned up to 500,000 euros in revenue in 2016 are
required to change their tax system by becoming a taxpayer on microfinance income. Basically,
no private company with income under this ceiling can not pay a 16% tax rate, but is forced
to apply the tax regime for micro-enterprises. The only companies that escape this obligation
are those with social capital of at least 45,000 lei, who can choose which tax system they apply
(micro or profit tax).
Regarding the ceiling to which a legal company can qualify as a micro-enterprise, it has grown
from 100,000 euros, as it was from 1 January 2016, to 500.000 euros. Accordingly, a micro-
enterprise is considered to be a legal entity if in the previous financial year did not exceed
revenues of 500,000 euros, equivalent in lei, this means five times more than the previously
established ceiling.
In addition to the increase of the ceiling for the "micro enterprise" category, OUG no. 3/2017
introduces a 1% tax rate for micro-enterprises with at least one employee hired under an
employment contract. Previously, single-employee businesses applied a 2% tax rate, except for
those newly established, who could, by way of exception to the aforementioned rule, apply a
reduced rate of 1%.
Henceforth, a tax rate of 1% or 3% is applied to companies organized as micro-enterprises, as
follows:
• 1% tax rate for micro-enterprises with at least one employee;
• 3% tax rate for micro-enterprises that do not even have an employee.
The companies covered by the new provisions of this Law will file the income tax return, Form
101, by 25 February 2017 at the latest (for period January 1-31, 2017).
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