Several tax changes take effect on January 1, 2024, all introduced by the PSD-PNL coalition. Many of these affect micro-enterprises, and if you are an entrepreneur, you will have to consider them. We are talking about both taxation and the new e-Invoice obligation, as well as the sponsorship of public organizations.

The only microenterprise payer of income tax

If an entrepreneur has several micro-enterprises, he should know that he will be able to pay income tax on only one (which has also changed, more details below). The rest will be subject to income tax at the rate of 16%.

More specifically, according to GEO 115/2023 (Trenuleț Decree), associations/shareholders of a Romanian legal entity that own, directly or indirectly, more than 25% of the value/quantity of participation rights or voting rights, both in the analyzed Romanian legal entity, as well as other Romanian legal entities that meet the conditions of the micro-enterprise income tax system must create a single Romanian legal entity by March 31 of the following fiscal year inclusive.

1 and 3% tax from January 1, 2024

From January 1, 2024, two tax rates apply to micro-enterprises. The microthreshold remains unchanged at 500,000 euros, but new ones appear depending on what tax is paid.

Thus, there will be the following tax rates:

• 1% for micro-enterprises that achieve revenues not exceeding EUR 60,000

• 3% for micro-enterprises that:

1. earns more than 60,000 euros; or

2. carry out main or auxiliary activities in different CAEN codes (see Law 296/2023, what are these codes and whether you fall under them)

Micro-enterprises are no longer able to deduct donations to NGOs from their income tax

Starting from 2024, micro-enterprises can no longer be sponsors to be able to deduct 20% of the tax.

As tax consultant Cornel Grama recently said, they can still do it, but without any tax benefits.

According to GEO (115/2023), the last financial year in which sponsorship/scholarship amounts remaining to be carried forward are deducted from the income tax of micro-enterprises is the financial year 2023.

Renting premises from individuals is mandatory

Companies will have additional obligations if they rent office space from individuals. It will now be the enterprise, not the owner, that declares and pays income tax.

Therefore, by the 25th of the next month, he will have to pay the state.

100 euro franchise for a gym membership

If you took advantage of the €400 discount on your gym membership, find out that this amount has changed.

Employers (i.e. also micro-enterprises) will be able to offer their employees gym memberships within the 33% deductible limit of 100 euros per year. Basically, it fell from 400 euros.

(We will write about the increase in VAT, KAS on vouchers, etc. in other materials)

electronic invoicing, obligations and additional costs for micro-enterprises

From January 1, 2024, all companies, PFAs and public organizations operating in the B2B system are required to upload invoices to the e-Invoice system (managed by the Ministry of Finance for ANAF).

Since many accountants refuse to deal with such things because it is not their task, you have to buy a qualified digital certificate, which costs 30-45 euros per year, and for a slightly longer period, 3 years, they go up to about 80 euros. Please note that the prices are without VAT.

This is to be able to use virtual private space and upload invoices.

These are invoicing programs that have e-Invoice integrated and will guide you step-by-step through how to use them.

In the first 6 months of 2024, ANAF will not impose sanctions, but it would be good, however, to submit invoices (the change occurred through GEO 115/2023). This is the time when they simply transmit. Sanctions will also apply from July 1.

The deadline for submission is 5 calendar days from the moment the invoice is issued, but no later than 5 calendar days compared to the deadline for issuing an invoice provided by the Fiscal Code, i.e. the 15th of the following month.

If the Treasury system can’t handle it, you’ll have to try at midnight or on the weekend. The Ministry of Finance and ANAF made a guide, but it needs to be updated, because in the meantime a resolution appeared that changed something.

Fines will also come after 6 months.

Small and medium-sized taxpayers will receive a fine of 2,500 to 5,000 lei.

Other taxpayers, i.e. lower than average, will receive a fine of 1,000 to 2,500 lei.

Changes to cash limits

There are also changes to the monetary limits recently introduced by the Train Decree.

Thus, cash collection and payment transactions between companies and individuals, which represent remuneration for the supply or purchase of goods or services, dividends, assignment of receivables or other rights, are carried out within the daily limit of 10,000 lei to/from an individual.

Collection and payment operations between companies and individuals, representing the receipt or repayment of loans or other financing, regardless of their nature and purpose, are carried out only with the help of non-cash payment instruments.

The amount of cash in the cash register of legal entities at the end of each day cannot exceed 50,000 lei.

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