New year, new round of fiscal changes for Romania: Micro-enterprise tax, agricultural revenues, excises

A handful of changes to Romania's Fiscal Code were recently announced and they will most likely be approved in the Government meeting today (Tuesday, January 22 ). The fiscal changes were coupled with the budget revisions, which will be approved in the regular Government meeting on Wednesday (January 23 ), so that both changes go to the Parliament for approval on Thursday (January 24 ). One of the main fiscal changes is the tax on micro-enterprise revenues. Companies with revenues of up to EUR 65,000 will automatically pay the 3 percent tax on revenues, rather than the normal tax on profit. So far, this was optional, but now it becomes mandatory, while the threshold was lowered from EUR 100,000. The new rule applies to companies which complied with the needed conditions as of December 31, 2012. Companies no longer need to have at least one employee and maximum nine to be considered as micro-enterprises. Companies which have revenues between EUR 65,000 and EUR 100,000 and which opted for the micro-enterprise tax will keep the same system in 2013. New companies will have to pay micro-enterprise tax from their first fiscal year – 2013. If a company exceeds the EUR 65,000 threshold during the year, it will pay the profit tax starting with the trimester when the revenue increase was noted, but the calculation will be made over the entire year. Another change was including revenues from animal breeding, fishing and forestry among the taxable revenues, with a flat tax of 16 percent. These measures aim at reducing the tax evasion in agriculture. Changes were made in taxation for farming land, slightly lowering the taxes. Farmers with up to 10 sheep and goats, three cows, six pigs, 100 poultry or 100 bee hives will be exempt from the tax. Those who register revenues from agriculture, including the new categories of revenues, will also have to pay social contributions- mainly for healthcare. On the excises segment, the beer and fermented beverages excises will be slightly up. For beer, it will go from EUR 0.748/hl/Plato grade, to EUR 0.822/hl/Plato grade. The excise for cigarettes will also go up earlier than initially announced, from April 1, rather than from July 1. This is part of the excise increase calendar, but the increase will be applied earlier than expected. editor@romania-insider.com (photo source: sxc.hu)