Regime Rate
1%
Under the Micro-Enterprise Reg
Standard Top Rate
10%
without this regime
Duration
Unlimited
No expiry — permanent regime
Target Profile
Turnover Tax
Romania
Tax Savings Illustration
Example: €150,000 Annual Gross Income
Under Micro-Enterprise Reg
€1 500
Standard Rate
€10 500
Annual Saving
+€9 000
Eligibility Requirements
Who qualifies?
- Companies with revenue <€500,000, <50% consulting revenue, at least 1 employee
How the Regime Works
Full details
1% tax on turnover (up from 1% to 3% if no employee or revenue >€60,000). Replaces 16% corporate profit tax. No quarterly advance profit tax payments.
Regime vs Standard Rates in Romania
| Tax Type | Standard Rate | Under This Regime | Saving |
|---|---|---|---|
| Income Tax (top rate) | 10% | 1% | -9.0pp |
Frequently Asked Questions
What is the Micro-Enterprise Regime in Romania?
The Impozit pe Veniturile Microîntreprinderilor is a special tax regime in Romania that provides 1% flat rate to qualifying individuals or entities. 1% tax on turnover (up from 1% to 3% if no employee or revenue >€60,000). Replaces 16% corporate profit tax. No quarterly advance profit tax payments. Legal basis: Fiscal Code Art. 47-57; OUG 31/2022.
Who is eligible for the Micro-Enterprise Regime?
Eligibility for the Micro-Enterprise Regime is limited to: Companies with revenue <€500,000, <50% consulting revenue, at least 1 employee. Applicants typically must not have been Romania tax residents during a specified prior period. Always verify current conditions at the source: Fiscal Code Art. 47-57; OUG 31/2022.
How much tax do you pay under the Micro-Enterprise Regime?
Under the Micro-Enterprise Regime, you pay 1% flat rate on qualifying income — significantly lower than Romania's standard top rate of 10%. On €150,000 gross, you save thousands of euros per year.
How long does the Micro-Enterprise Regime last?
The Micro-Enterprise Regime is a permanent regime with no set expiry — it applies for as long as you continue to meet the eligibility criteria.
How do I apply for the Micro-Enterprise Regime?
Application procedures for the Micro-Enterprise Regime are set out in Fiscal Code Art. 47-57; OUG 31/2022. You typically need to file a formal application with Romania's tax authority after establishing residency. Consult a local tax advisor for guidance.
Other Special Regimes to Compare
Disclaimer: This information is for general guidance only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making residency or tax planning decisions.