This article reflects the tax rules and official information available at the date of publication. For current advice, please check the latest legislation or contact our team.
Starting with 1 January 2023, Romania changed the conditions under which companies may apply the micro-enterprise income tax regime.
The main threshold became EUR 500,000 in annual revenue, calculated in lei using the exchange rate valid at the end of the financial year in which the revenue was recorded.
Main eligibility conditions
- The company must not exceed the EUR 500,000 revenue threshold.
- More than 80% of total revenue must come from activities other than consultancy and/or management.
- The company must have at least one employee, except for specific cases provided by law.
- Shareholders holding more than 25% of shares or voting rights may hold such participation in no more than three Romanian legal entities applying the micro-enterprise regime.
If a shareholder holds more than 25% in more than three eligible Romanian companies, the shareholder must choose the three companies that will continue to apply micro-enterprise tax. The remaining companies apply profit tax.
Newly incorporated Romanian companies may choose the micro-enterprise regime from the first fiscal year if the required conditions are met at incorporation or within the legal deadline after registration.
Why this matters
The regime can still be useful, but it is no longer automatic for many small companies. Ownership structure, revenue type and employee status must be reviewed before applying it.