Romania micro company tax rules change announced today

[MiltonStone]

Something OP should⁠ take into consideration for sure.

 

[CoffeeCherryTea]

Noteworthy: Starting 1 January 2023, the gross monthly minimum wage is 3,138 RON (€643) during‌ a working schedule of 167.333 hours per month.

Source

 

[Bimblis]

I am thinking the deal is:

- Have a Romanian girlfriend.
- Ask her to‌ be your special secretary
- She gives you back the salary money in cash at‍ the end of the month

So in the end, you only pay the social security⁠ of the employee.

 

[ilpablo]

Yes this︀ is what I thought when I moved here last year. But now they changed the︁ rules and if I'm not mistaken I must employ myself to benefit from the 1%︂ tax and pay like 2500€ a year minimum tax. This apart from the fixed tax︃ seems to overcomplicate things if I want to move abroad somewhere else in the upcoming︄ years.

For example, let's say I want to move to Portugal, I can't be the︅ director of my Romanian company or afaik it will be considered a local company for︆ tax purposes.

 

[Bimblis]

I think you can only employ a Romanian for that condition. You may only be‌ able to employ yourself if you are romanian.

 

[pucecacou]

The 3% rate of the micro company with no employee is dumped already ?

 

[benbao]

That is‍ not correct, anyone who has a Romanian NIF or CNP is fine.

No, starting January it's 1% with one employee to be eligible.

 

[pucecacou]

So 1% or 16% but no more 3% ? Hum what's the catch with the⁠ "20% consultancy rule" ? Can anyone explain what does it consist and why it's a⁤ bummer ? Only briefly heard of it. Cheers

 

[benbao]

Yes, it's⁠ 1 or 16 for corporate income tax and 8 for dividend from 2023 onwards.

The changes are essentially all in line with what the EU demands, so every other country⁤ offering a better deal (e.g. Bulgaria) will have to change that as well in the⁣ coming years.

 

[Marzio]

So the change is to basically avoid having a company without substance in Romania. Fair‌ enough

 

[ADROCK123]

I can confirm that if you have a proper residence permit(with cnp) you can hire‌ yourself

 

[ImKing]

Mot me it is still a good a valid option for the company︀ setup.

 

[freegeek]

as I understand it the micro company setup is not available anymore for consultants, correct?‌

 

[benbao]

The total income from consulting has to be below 20%‍ to qualify for the micro enterprise scheme.

 

[AlexRon]

You're talking about 1% and 500K limit per year. It's great. But what about additionally‌ VAT 19% rate which applies to all supplies of goods and services?
Or is it‍ not applicable to micro-companies?

 

[ADROCK123]

Consulting is really loose definition, you can kind of change‍ your job title and it's ok

 

[benbao]

VAT will need to be charged‍ to customers in the EU if you go above the limit for VAT registration, I⁠ believe it was EUR75k. If you do B2B or non EU it is irrelevant anyhow⁤ and if you do B2C simply add the prevailing VAT rate of the country of⁣ residence of your customer onto the invoice and done.

 

[qwjwqieajs]

The latest summary of the changes coming in 2023: Romania: micro-enterprise income taxation in 2023‌ - KR Group

For me they killed it.

Additionally to be in such an unstable‍ ever changing environment is not good.

 

[RealDude]

They will not be⁠ the last...

 

[SARAH22]

Hello,! And Happy new year!!
About the micro regulation in Romania, please be inform that︅ starting with 1January 2024 the max turnover will be 300k, !
Don't bet on the︆ romanian taxation allways is changing during the game,! But you ha e solutions ,. Where︇ are you come from???