Limiting the number of micro-enterprises in which an associated person can own more than 25% from 3 to only one, or the impossibility of deducting the cost of electronic fiscal marking machines from tax are among the provisions of the Decree on trains that will affect the development of the business environment, warns the Economic and Social council (CES) in a negative opinion given to this regulatory act on the agenda of the Government on Thursday.

CES complains that there is no financial impact study that would also show the number of companies/organizations affected by the new changes to the Fiscal Code.

• SEE CES NEGATIVE CONCLUSION ON 2024 BUDGET AND TRENULET DECREE

In addition, CES notes that there are many aspects that are unfavorable to the development of the business environment, including:

• 1. the number of micro-enterprises is limited in which a partner can own more than 25% from 3 to only one, and the ownership does not necessarily have to be direct, but can also be indirect, thus including companies where there are partners of the husband/wife or relatives up to and including the III degree. This amendment broadens the tax base and this should not be done by restricting/infringing some rights of association in such a way that it affects the freedom of will when deciding on association.
• 2. the possibility of deducting depreciation and expenses is limited operations related to social premises in residential complexes purchased by the taxpayer for 50%, if they are not used exclusively for the purposes of activity, as well as in a situation where such premises are also used for personal purposes by partners, all the costs indicated above are not subject to deduction
  This provision will lead to abuse to the extent that it is not clear how it can be demonstrated that the headquarters is also used as a home, given that, especially after the pandemic, there are many entrepreneurs who provide remote/work from home services.
• 3. reimbursement of budgetary losses it can be done only in 70% proportion and only after 5 years
• 4. the cost of marking machines can no longer be deducted from the tax electronic fiscal systems, given that recent legislative changes have forced taxpayers to invest in such equipment in order to be able to fulfill their legal obligations, failure to timely submit balance sheets by microenterprise income tax payers leads to classification as an income tax payer, and the deadline submission of financial statements for 2023 for micro-enterprises – March 31, 2024.
• 5. the expenditure ceiling has been reduced which can be paid to employees for medical subscriptions or sports facilities without being considered as taxable income for them from 400 EUR/year to 100 EUR/year, which affects the ability to motivate, retain and ensure the full capacity of employees. In addition, the limit on expenses for medical or sports subscriptions, which employees are entitled to deduct from the tax base if they pay for these subscriptions themselves, has been reduced from €400/year to €100/year.
• 6. tenants, legal entities are held liable the obligation to withhold, declare and transfer to the budget the tax on rental income owed by private owners, increasing without any counter-advantages the efforts of taxpayers, since the state could not take effective measures to collect this tax from individuals

The CES plenary session unanimously voted for a negative conclusion on the Trenuleț Resolution, with 34 votes against. The plenary session of the Central Committee of Economic and Social Affairs gave a negative conclusion on the draft law on the state budget for 2024: 32 votes, 28 against, 4 with comments.

Most ESC members blamed insufficient time for analysis. CES conclusions are binding but advisory only.

All these regulations are to be passed by the government on Thursday evening after more than 7 hours of delays.