If you are an entrepreneur or want to become one, then you need to keep in mind that in addition to changes related to micro-enterprises, others have appeared this year.

First of all, you should know that from 2023 dividends are taxed at 8%. The share increased from 5%.

It should be noted that Law 370 (amending OG 16/2022) provides that dividends distributed in 2022 will be taxed at a rate of 5%. The exception is the fourth quarter of 2022, as the dividend will be in 2023. So fourth quarter dividends will be taxed at 8%.

In fact, if there are cases where entrepreneurs are thinking of distributing dividends from previous years this year, they need to know that they will be taxed at the rate of 8%.

CASS payment of dividends after new changes

As you know, in certain amounts, entrepreneurs must submit a single declaration and pay a medical contribution (ESV).

Some changes have appeared here, in the sense that new thresholds have appeared, namely 6, 12 and 24 minimum wages.

So if we refer to 2023, since we already have a new minimum wage, the amounts that will need to be paid out if you collect dividends between the thresholds below are:

• Below 6 minimum wages (18,000 lei) is zero.

• From 6 to 12 minimum wages (18,000 – 36,000 lei) owe 1,800 lei

• From 12 to 24 minimum wages (36,000 – 72,000 lei) 3,600 lei is owed

• With more than 24 minimum salaries (72,000 lei), 7,200 lei are owed

Payment of CASS in 2024 will be made through the Unified Declaration.

Therefore, in addition to 16% (if you are an income tax payer) or 1% (if you are a micro income tax payer), you must also pay 8% dividend tax and CASS at the above thresholds.

Obviously, depending on the type of activity, you still have the remaining taxes, namely VAT, excise duty, etc.

What to consider if you exercise your choice to become a micro-enterprise

From January 1, all companies are considered corporate tax payers and can optionally be micro-enterprises if they meet certain conditions.

• First of all, for a micro-enterprise you need to know that the income ceiling in 2023 is €500,000 to pay the 1% tax (3% no longer exists).

If you already have a micro-enterprise and your statute in 2022 is less than €1 million, you can stay on the same regime until you exceed €500,000 in 2023. If you exceed, you will go to income tax.

• Another condition: you can own more than 25% of the authorized capital of a micro-enterprise in no more than 3 companies. Otherwise, if you own more than 25% in more than 3 companies, you must decide which companies will pay income tax.

• In addition, to be a micro-enterprise you must have at least one full-time employee. Practically, micro-enterprises without employees for the 3% quota will no longer exist (because they no longer exist).

This can either be an 8-hour contract, or you can have several part-time workers who accumulate a total of 8 hours. It is also possible to conclude a power of attorney agreement for an amount equivalent to the minimum salary (for example, an administrator).

One of the provisions is open to interpretation, so be very careful with it until the authorities provide clarification: suspension of the employment contract can lead to exit from the micro-term, so as Manolescu recently explained, be careful with medical leaves and other contract suspensions that you may lose your microstatus.

Photo source: Dreamstime.com

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All the measures that come into force from 1 January and affect your personal finances in 2023

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