Starting in 2026, significant changes will affect micro-enterprises, especially through a new turnover threshold. A micro-enterprise will be defined as a Romanian legal entity that cumulatively meets certain conditions as of December 31 of the previous fiscal year.
The most important modification concerns the turnover cap: the company must have earned no more than EUR 100,000, calculated using the exchange rate valid at the end of the financial year. The revenues of any linked enterprises must also be included. Additional conditions include privately held share capital, at least one employee (with certain exceptions for newly established companies), timely submission of annual financial statements, and the requirement that shareholders owning more than 25% choose this entity as the only one applying the micro regime.
However, several types of entities are explicitly excluded, even if they meet the general criteria: special financial funds and institutions, fiscally transparent entities with legal personality, companies operating in banking, insurance, reinsurance, capital markets, gambling, or activities related to oil and natural gas deposits.
Micro-enterprises are taxed at 1% if they register up to EUR 60,000 in revenues and do not operate in restricted fields, or 3% if they exceed this level or carry out activities in IT, hospitality, legal, or medical sectors. If a company carries out any of these activities, the 3% tax rate applies to all its revenues.
Exceeding the EUR 100,000 threshold triggers the switch to corporate income tax starting with the quarter in which the threshold is exceeded. Loss of micro-enterprise status may also occur if the company fails to maintain at least one employee or does not file its financial statements on time. A switch from the 1% to the 3% tax rate applies starting with the quarter in which revenues exceed EUR 60,000.
The tax base includes all revenues, minus categories such as stock-related revenues, subsidies, foreign exchange differences, compensations, or dividends. Certain elements, including commercial discounts received after invoicing and specific reserves benefiting from previous tax facilities, are added to the tax base.
Overall, the micro-enterprise regime becomes stricter in 2026, and companies must carefully monitor thresholds and conditions to ensure proper classification and avoid mid-year tax adjustments.