Fiscal Code amendments: Micro-enterprises no longer be required to have at least one employee

The government decided to amend the ordinance on the Fiscal Code, after a series of meetings with the business community, trade unions and local authorities. According to government sources, several changes are planned for micro-enterprises, the Horeca sector, gambling or property tax.

According to the quoted sources, the micro-enterprises will no longer be compelled to hire at least one employee. Companies without employees will automatically pay profit tax, and companies that have at least one employee pay a tax of 1% of turnover if it falls within the new ceiling set by the government of up to 500 thousand euros. Initially, the condition was introduced that the micro-enterprise should have at least one employee. Also, consultancy and management will be more clearly defined, in the context in which the ordinance stipulates that the revenues obtained from these activities will be limited to 20%.

For the Horeca sector, the Government will postpone the entry into force of the new provisions until the beginning of next year, compared to August 1 in the initial form of the ordinance. Thus, from January 1, 2023, for Horeca will be applied a turnover tax of 1%, or you can opt for the profit tax, being eliminated the specific tax.

Following the discussions with the mayors, a measure was revised, and the property tax will remain only at the minimum thresholds, respectively 0.1% for residential and 0.5% for non-residential.

In gambling, the tax thresholds change, thus being taxed with only 3% the winnings of up to 10,000 lei for players, and the threshold increases progressively to 20%, respectively 40% depending on the winnings. 40% will be for incomes over 66,750 lei. Instead, from August 1, 2022 will increase the taxation on companies that deal with the organization of gambling, with license fees and double taxation.

Changes will also be made to carriers so that they do not have problems with daily allowances, after they have criticized the measures announced by the Government. Thus, the daily allowance for carriers will be eliminated from extra-salary income.

Also from August 1, the new excises for cigarettes and alcohol, as well as part-time contracts will enter into force. If a person has only one part-time contract, he will pay contributions similar to those existing at the minimum wage in the economy. Exceptions will be made by pupils and students under the age of 26, persons pursuing a form of apprenticeship, pensioners receiving a pension from the public system, individuals earning wages with more part-time or full-time employment contracts and the value cumulative exceeds the minimum wage in the economy, people with disabilities.