In a useful discussion on Thursday, March 14, with a representative of the Ministry of Finance on the subject of another round of tax changes to remove the confusion of last year’s “roller coaster regulation”, tax officials received clarification on the problem of related enterprises, which can lead to the reclassification of many micro-enterprises in Romania and to a change in the type of tax that the company must pay.

And they got another interesting response when the undersigned brought up one of the big problems with granting affiliates, which is that it would be retroactive: “We want to apply it a little bit retroactively as well. To be beautiful.” Both the Fiscal Code and especially the Constitution of Romania say that this is impossible.

In a country like Romania, where about 500,000 companies have the micro-business regime, the subject’s stakes are not small at all.

We are already used to the fact that the changes in the fiscal sphere, introduced by the Government, are based on the principle “we give like this, and then fix it.” Impact studies do not exist, public debate is only theoretical, and compliance with the Constitution and organic laws is less important than the desire of government officials and attempts to pinch money wherever possible to patch budget holes created by politicians.

This is how it happened that less than two months after the publication of Law 296/2023, which significantly changes the Fiscal Code, the Government is dissatisfied with the amendments introduced by the Parliament and on the eve of the mini-holidays, The Holidays, GEO 115 /2023 is published, which, among other things, completely changes the concept micro enterprises.

One of the most important and discussed changes was the introduction of the concept of related enterprises. More precisely, a company cannot apply the micro-enterprise income tax system if its combined income, together with that of related enterprises, exceeds the upper limit of €500,000.

Read more at Panorama.ro.