Starting in 2024, the Fiscal Code undergoes a series of modifications enacted by Law 296/2023 and Emergency Ordinance 115/2023. These changes encompass various aspects, including the method of calculating the income tax for micro-enterprises in Romania, additional conditions to qualify as a micro-enterprise in Romania, the mandatory adoption of the RO e-Invoice System and an increase in the value-added tax rate for certain activities. The Romanian Law Firm Pavel Mărgărit and Associates recommends seeking the services of a lawyer specialized in fiscal and financial law in Romania who can provide legal assistance in order to understand and correctly comply with the new legal provisions, as well as ensure that the company adheres to all current fiscal regulations.
The income tax for micro-enterprises starting with 2024.
The income tax for micro-enterprises starting with 2024 will undergo alterations. One of the requirements to be classified as a micro-enterprise in Romania will change, stipulating that the company must have associates or shareholders who hold more than 25% of the total share capital or voting rights and must be the sole micro-enterprise created by these associates or shareholders. Previously, the condition was for a Romanian company to have associates or shareholders holding over 25% of the total share capital or voting rights in a maximum of three micro-enterprises. Furthermore, a new condition for being considered a micro-enterprise in Romania involves timely submission of annual financial statements.
Moreover, for Romanian micro-enterprises, there will be two taxation rates: 1% of revenue for companies outside the HoReCa, medical, IT, dental fields, with an annual turnover below 60,000 Euros, and 3% for firms operating in the aforementioned sectors or with turnover between 60,000 and 500,000 Euros. Given the changes in the Fiscal Code, it is essential to consult a lawyer specialized in fiscal and financial law in Romania who can provide detailed interpretations of fiscal legislation in Romania regarding the application of new conditions, as well as the fiscal implications of these changes.
To receive high-quality consultancy and personalized solutions in fiscal law, it is advised to seek the services of a lawyer specialized in fiscal and financial law in Romania by accessing the contact form available at https://www.avocatpavel.com/contact-us/.
RO e-Invoice System
The RO e-Invoice System, involving the automatic transmission of invoices issued by a company in Romania to state authorities and invoice recipients, becomes mandatory for most companies in Romania. Initially, companies must report all invoices issued to other companies and public institutions in the RO e-Invoice System. Subsequently, starting from July 1 2024, companies are mandated to exclusively use RO e-Invoice for invoicing, failure to comply risks incurring contraventional sanctions. Therefore, The Romanian Law Firm Pavel Mărgărit and Associates recommends to contact a lawyer specialized in fiscal and financial law in Romania to provide legal assistance, including fiscal consultancy, addressing and resolving any disputes or issues related to the use of the RO e-Invoice System, which could lead to contraventional situations or litigations, as well as offering assistance in dealings with tax authorities in Romania or other entities in case of audits or legal procedures associated with using the RO e-Invoice System.
Value-Added Tax (VAT)
From 2024, companies in Romania involved in supplying food containing at least 10g/100g of added sugar or non-alcoholic beer should be aware that the VAT rate will increase from 9% to 19%. Additionally, the VAT rate will rise from 5% to 9% for Eco and bio products, including the delivery and installation of photovoltaic panels. The team of lawyers specialized in fiscal and financial law in Romania from Pavel Mărgărit and Associates offers detailed legal opinions regarding the new VAT rate changes and how they affect each company’s sector of activity in Romania. They also identify specific fiscal implications for each company to ensure compliance with the new legal requirements concerning both VAT and the latest changes in fiscal legislation in Romania.
In conclusion, the significant changes made to the Fiscal Code in 2024 through Law 296/2023 and Emergency Ordinance 115/2023 necessitate special attention and appropriate adaptation from companies in Romania. To comply with the new fiscal regulations, the recommendation from Pavel Mărgărit and Associates is to seek the services of a lawyer specialized in fiscal and financial law in Romania who can offer essential legal assistance in understanding and correctly implementing legislative changes, ensuring full compliance with current fiscal requirements.
Pavel, Margarit and Associates Law Firm is one of the top law firms in Romania, providing high-quality legal services. The firm’s clients include multinational and domestic companies of great magnitude. In 2023, the law firm’s success stories brought it international recognition from the most prestigious international guides and publications in the field. As a result, Pavel, Margarit and Associates Law Firm ranked 3rd in Romania in the Legal 500’s ranking of business law firms with the most relevant expertise. The law firm is internationally recognized by the IFLR 1000 Financial and Corporate 2023 guide. Additionally, Pavel, Margarit and Associates Law Firm is the only law firm in Romania recommended by the international director of Global Law Experts in London in the Dispute Resolution practice area. All relevant information about Pavel, Margarit and Associates Law Firm can be found on the website www.avocatpavel.com.