Romania - Fiscal changes coming soon - Need Plan B

[MRot]

Latest news just in.
Appears the limit on 30% profitability is not off the table,‌ and a Micro Corporate with a profit margin of >30% will have to pay 16%‍ Corporate Tax rate.

https://www.profit.ro/taxe-si-consu...e-cozonacul-scapa-de-acciza-la-zahar-21315079

 

[accountantromania]

My best guess is, that we will see an increase from 1% to 3% for‌ microcompanies, 30% profitability will not be a measure,
dividend tax stays at 8%. The requirements‍ to qualify as a microcompany under Romanian law will remain the same.

 

[theotheo]

Right now, it seems they changed their mind and leave the 16%CIT
The total cost‌ would be 3% Turnover then Social contributions for keeping 1 employee to remain micro (3600EUR‍ annualy) then 8% Dividend tax, then Social contributions for Dividend over 24 Minimum salary (1900⁠ EUR)

Romania lost 1st place and fall behind Poland, Bulgaria, Cyprus for income over 100K⁤ but still could be attractive (Latin alphabet, not cold like Poland, people friendly)

 

[myhand]

move all over into a UK LTD which you don't own officialy and you︄ will be good. or use an invoice model for future.

 

[Researcher]

So did they enforce it? Is Romania still a good solution for freelancers and︄ IT business tax optimization? Or not anymore?

 

[AlicaFunk]

Go with Bulgaria much better place.

 

[Dexur]

It's still alright in Romania. The taxes a bit higher, but it's still a good‌ option to incorporate

 

[Researcher]

Is Romania or Bulgaria better for IT freelancer making around 50k$ a year and cashing‌ out some crypto?

What makes Bulgaria better?

 

[GrumpyMess]

With 50k better‍ go to Czech republic

 

[Researcher]

Czech Republic has‌ 0% crypto tax? What are the tax benefits there?

 

[GrumpyMess]

No, but you can get an effective tax rate as self employed around‌ 13%

 

[Researcher]

That's high and 15% is horrible for cashing out crypto when‍ other countries offer 0%.