By Law No. 370/2022, numerous amendments were approved upon conversion to the previous Decree Law No. 16/2022 and thus to the Tax Code in effect as of Jan. 1, 2023.
In addition to the amendments, a number of extensions of the deadlines of the enacted measures were approved.
Let’s look at the main changes in detail:
1. The percentage of taxation of dividends distributed in 2022, regardless of whether they are paid or not, based on interim financial statements prepared in 2022 is clarified in the sense that they are subject to a 5% rate without recalculating the tax when the annual financial statements are approved. This basically means that dividends distributed through quarterly reports until September 31, 2022 remain taxed at the 5% rate, and dividends for the 4th quarter that are approved through quarterly or annual reports in 2023 are taxed at the 8% rate;
2. The revenue limit of €500,000 for the microenterprise regime applies as of the administrative year 2023; therefore, for this fiscal year (2023), enterprises with taxable revenues in 2022 within the ceiling of €500,000 – €1,000,000 calculated BNR Rate as of December 31, 2022 retain the microenterprise regime. Retention of the microenterprise regime, of course, also depends on meeting the other conditions imposed by the law: the hiring of at least one employee (full time and permanent contract or 12 months) and certain exclusions in the field of activity;
3. It is reiterated that a microenterprise may earn a maximum of 20 percent of income from consulting and management, except for microenterprises providing tax consulting services CAEN Code 6920 “Accounting and financial control activities; tax consulting.”
4. It is reiterated that enterprises operating in the HORECA sector can remain microenterprises regardless of the level of revenue recorded and can carry out other activities with the requirement to comply with the following conditions:
(a) not to make consulting and administration revenues exceeding 20 percent of total revenues;
(b) not engage in activities incompatible with those excluded for microenterprises ( income from gaming, financial intermediation, exploitation of minerals);
(c) not earn income from other activities that exceeds the equivalent of 500,000 euros;
If these HORECA companies violate any of these conditions, they become subject to profit tax from the quarter in which they no longer meet the condition.
5. For construction employers, the method of calculating the percentage of 80% of construction turnover to total income is changed. This percentage is determined as the ratio of the total income from construction activity carried out on the territory of Romania to the total income actually earned on the territory of Romania. In practice, if there are builders who carry out construction outside Romania and invoice the revenues related to this construction from abroad, these revenues from abroad are not taken into account in determining the 80% percentage. It is reiterated that the turnover also includes the production made but not invoiced;
6. The building taxation procedure is extended until the year 2025 with reference to values in the grids of public notaries in Romania;
7. It also changes the obligation of economic operators carrying out retail and wholesale activities or service providers in the sense that they must equip themselves with POS or other modern solutions that accept electronic payments only if they have cash receipts in a year with a value exceeding 50,000 lei. The law imposes this requirement only for cash receipts and excludes bank receipts from the 50,000 lei ceiling.
