The number of companies that have the micro-business regime significantly decreased in 2023 after the entry into force of the provisions of Decree 16/2022. According to ANAF, if in 2022 there were 912,875, then in 2024 the number decreased to 495,488.

We remind you that this decree lowered the ceiling for this tax regime to 500,000 euros and introduced the condition of a full-time employee. In addition, according to this order, an individual can own more than 25% of the authorized capital of a micro-enterprise in no more than 3 companies. Otherwise, if he owns more than 25% in more than 3 companies, he has to decide from which companies to pay income tax.

So, we had the effect of reducing the number of companies that apply the micro-business regime. In view of the Law 296/2023 and GEO 115/2023 in 2024, everything has changed a lot.

In 2024, we expect another reduction due to the problem of related businesses: entrepreneurs do not want to take the risk of knowing that they have a relative who still owns the business

The PSD-PNL government introduced a law that previously applied to European funds (346/2004) into the Fiscal Code, but the definitions conflict with those in the Code, so tax professionals do not know how to interpret it. As Dan Manolescu, president of the Chamber of Fiscal Consultants (CCF), recently said: Nobody understands anything anymore.

The only one who says that everything is clear: Minister Marcel Bolosh. When asked how it was interpreted, for example, in the case of married persons, he confused it with related person provisions, which represented something else.

This is in conditions where the employees subordinate to him do not know how to solve the problem, which is extremely difficult. Clarifications wanted to come by the end of February, but it was not possible.

The deadline for submitting the declaration is the end of March, so that entrepreneurs pay taxes in April. Now they don’t know what to pay and what to declare. We have March 13, no clarifications have been received.

Specialists with whom HotNews.ro spoke these days say that it would be better for the government to say that they no longer want micro-enterprises, and then the problem would be solved much more easily than to allow some entrepreneurs to take risks and then, after possible control, ANAF should consider that the legislation should be interpreted differently.

“The upper limit (€500,000) includes income from other companies opened by the shareholder. Many companies are obliged to comply with the definition in Law 346. It was a complete coup. On a practical level, all accountants and consultants are asked to: What I do I answer them: you are subject to income tax, but if you want a micro (micro business regime no), look at the law, what you understand, so submit! Nobody understands anything“, said Dan Manolescu, President of the Chamber of Tax Consultants.

Conceptually, he said, the definition of an enterprise in the SME Act includes the PFA.

“The concept of the law on SMEs is completely different from what we have in the tax legislation. There we are talking about an enterprise in the sense of economic activity. So in the ceiling, everything is completely different. The confusion of concepts led to a complete revolution. Clarifications are needed,” he explained.

We are talking about mining and processing companies, – says Manolescu.

“We read them together, and no one understands anything. I have been doing this exercise with colleagues dealing with European funds who have been doing this for years. This definition was used for European funds when applying for European funds or state aid. Until now, these analyzes were carried out ex-ante. If they had doubts, they said: “You see that you do not meet the requirements, leave this company so that you can apply,” explained the president of the Chamber of Tax Consultants during a conference organized by News.ro.

Now, he says, it looks like we mean those criteria with the December 31 date.

It is unknown to what degree of kinship the Ministry of Finance is looking into

“As it is now, we will not have many micro-enterprises. The only clear case is those who have one company. They have no shares elsewhere, no wife, no children, no relatives with companies. Whoever else has something in the family seems to have problems,” explained Manolescu.

What tax changes came into force on January 1, 2024, related to the micro-business regime

1. Starting from January 1, 2024, a person may own shares or shares directly or indirectly in one micro-enterprise. Accordingly, the microenterprise status is maintained if the annual financial statements are submitted on time.

2. The annual limit of micro-enterprises of 500,000 euros is maintained, but it becomes cumulative for all related micro-enterprises, a connection that we understand according to Law no. 346/2004 on encouraging the creation of small and medium-sized companies (a micro-enterprise can be merged into another micro-enterprise, in which case the ceiling will cover both micro-enterprises.

3. The limit of €500,000 will also apply to micro-enterprises in the HORECA sector, provided that all conditions are met, including the obligation to register a full-time employee or several part-time contracts, amounting to one management contract per full-time. /mandate with an allowance that is slightly equal to the size of the minimum wage.

4. Secondary insurance and reinsurance intermediaries can be micro-enterprises, provided that the income from the activity of distribution of insurance/reinsurance products is no more than 15% of the total income.

5. Until March 31, 2024, persons who own several micro-enterprises must decide which companies will pay income tax and which company will remain a micro-enterprise.

6. An enterprise that is a corporate income tax payer as of December 31, 2023, may be a micro-enterprise from January 1, 2024, if after January 1, 2023 it no longer had the status of a micro-enterprise. For HORECA companies, this condition has been translated and applied from January 1, 2024.

7. The situation regarding micro-enterprises whose activity has been suspended in the Trade Register has been clarified, in the sense that upon resumption of activity, it retains its status as a micro-enterprise if it employs a person within 30 days after resumption and if the subject of activity allows it to be a micro-enterprise.

8. The obligation to pay income tax is established for a micro-enterprise that did not submit financial statements for the previous year. Income tax will be paid starting from the quarter in which the financial statements should have been submitted.

9. For micro-enterprises that are related to each other, the threshold amount of 500,000 euros is analyzed collectively, and if it is exceeded during a calendar year, both companies must pay income tax starting from the quarter in which the threshold amount was exceeded.

10. Enterprises that can apply the micro-enterprise taxation system in 2024 must submit Annual Financial Statements for the previous year by March 31, 2024.

11. From January 1, 2024, the right of a micro-enterprise to reduce income tax on the amount of sponsorship or the cost of purchasing fiscal control and cash registers will be abolished. The last financial year in which a micro-enterprise can reduce micro-enterprise income tax through sponsorship or cash registers or remit the tax is 2023.

12. The following measures introduced by the New Tax Law (L296/2023) are also applicable from January 1, 2024:

Taxation of micro-enterprises is changing. 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. perform main or secondary activities in different CAEN codes

See also: Do ​​you have a micro-enterprise? What changes does the Trenuleț Decree bring to you?