Romanian Govt. changes taxation for large micro-enterprises overnight

Romanian micro-enterprises with a turnover of over EUR 500,000 at the end of 2021 will by default switch to profit taxation as of January 1, according to clarifications provided by representatives of the Ministry of Finance, Profit.ro reported.

Currently, companies with revenues below EUR 1 mln can opt to pay a 1% (or 3% if they have no employees) income tax instead of a profit tax of 16%. Many companies choose this option.

In order to enter into force, the ordinance must be approved by the Government, a decision expected for Friday's meeting, after which it will be published in the Official Journal.

The sharp reduction of the limit has caused dissatisfaction among companies subject to the move. The provisions of the Fiscal Code, which stipulate that any change must be made at least six months before the entry into force, are violated, stated representatives of the National Council of Small and Medium Enterprises of Romania.

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