Amendments to the Fiscal Code

An emergency ordinance on various fiscal-budgetary measures has been promulgated, introducing, among other things, a number of fiscal amendments. The changes are summarised below:

• Minimum turnover tax 

Taxpayers regulated / licensed by the National Energy Regulatory Authority who derive more than 95% of their total revenue from the distribution / supply / transmission of electricity and natural gas, minus exempted revenues included in the Vs indicator, are exempted from applying the minimum turnover tax.

• Micro-enterprise tax

For the purposes of applying the micro-enterprise tax regime, a Romanian legal entity is considered to be linked with another person if any of the following relationships exist between them: 

• The Romanian legal entity holds (directly or indirectly) in another Romanian legal entity more than 25% of the shares or voting rights or has the right to appoint or dismiss the majority of the members of the Romanian legal entity’s administrative / management / supervisory board;
• Another Romanian legal entity holds (directly or indirectly) more than 25% of the shares / voting rights of the Romanian legal entity which qualifies as a linked undertaking or has the right to appoint or dismiss the majority of the members of the administrative / management / supervisory board of the Romanian legal entity which qualifies as a linked undertaking;
• Two Romanian legal entities are considered to be linked if another person holds (directly or indirectly) more than 25% in both companies. If the shareholder of the two companies is a Romanian legal entity, then the verification of the EUR 500,000 threshold will also take into account the revenues booked by the shareholder;
• The Romanian legal entity meets the condition of a linked undertaking if one or more of its shareholders holds (directly or indirectly) at least 25% of its shares / voting rights and also carries out economic activities through an authorised individual / sole proprietor / family business / other organisational form carrying economic activities without legal personality, authorised in accordance with the legal provisions in force. In this case, the revenues of the shareholders booked as per the applicable accounting regulations or, as the case may be, the annual income quota (norm), are cumulated with the income booked by the Romanian legal entity and other linked undertakings.

The EUR 500,000 threshold is verified by taking into account the income recorded by the Romanian legal entity cumulated with (i) the income of its linked undertakings and (ii) one quarter of the annual income quota (norm) established for the current tax year of the authorised individuals / sole proprietors / family businesses / other organisational forms carrying out economic activities without legal personality, authorised according to the laws in force, who calculate their income tax based on the annual income quota (norm).

The elements to be taken into account when determining the EUR 500,000 threshold are the same as those which constitute the taxable base of the micro-enterprise tax.

The new provisions also apply when determining the applicability of the micro-enterprise tax regime for the 2024 fiscal year.

By way of exception, for 2024, the deadline for notifying the application of the micro-enterprise tax regime has been extended until 15 April 2024 (normally the deadline is 31 March).

Taxpayers who have announced their application of the micro-enterprise tax regime / exit from the system by 29 March 2024 should submit, where appropriate, a new statement taking into account the new conditions applicable under the micro-enterprise tax regime. 

Source: Emergency Ordinance no. 31 on the regulation of various fiscal-budgetary measures and amending and expanding various normative acts, as published on 29 March 2024