Notable amendments have been introduced, particularly impacting microenterprises across various sectors. Here are the key updates:

Revised Tax Rates for Microenterprises:

  • The taxation landscape for microenterprises has undergone significant changes, affecting businesses in different economic sectors.
  • The 1% tax rate remains applicable solely to companies with revenues below 60,000 Euros. However, it is excluded for those engaged in IT, HORECA, medical activities, or lawyers operating in non-transparent fiscal entities or medical assistance.
  • The 3% tax rate applies to companies with revenues exceeding 60,000 Euros (but less than 500,000 Euros, following the reduction from 1,000,000 Euros as per OG 16/2022). This rate also applies to entities generating income from the aforementioned activities.

Observation Regarding the 500,000 Euro Limit:

    • The calculation of the 500,000 Euro limit includes considering the turnover of related companies, as defined by Law 346/2004 regarding SMEs.
    • A related enterprise is the business that is part of a group, through the direct or indirect control of the majority of voting rights or share capital, including through agreements, or, in certain cases, through shareholders, natural persons, or by the ability to exert dominant influence over an enterprise.

Ownership Restrictions for Microenterprises:

  • A stringent limitation has been imposed, allowing only one microenterprise to be directly or indirectly owned by an individual, holding over 25% of the share capital.

Mandatory Profit Tax for HORECA Companies:

  • HORECA companies with a turnover exceeding 500,000 Euros are now obligated to apply the profit tax.

Restrictions on Sponsorships for Microenterprises:

  • Microenterprises are no longer allowed to make sponsorships within the limit of 20% of the income tax due, considering the tax credit by deducting these amounts from the tax. These alterations of the new fiscal regulations, directly impacting the business environment and, notably, microenterprises.

Stay tuned for more in-depth analysis and business environment reactions.

Our team of professional is available for any clarifications or additional details required in your analysis. The above information represents just a summary of aspects we consider relevant in the recently published legislation. This is not exhaustive disclosure of information and it is not intended to be used as advice on any particular matter. We invite all readers to contact us for further clarification of any specific issue. Argus Audit team and its associates disclaim liability in any action taken by a third party in reliance exclusively on summarized information presented in our publications.