Through Government Emergency Ordinance (GEO) No. 89/2025, published in the Official Gazette No. 1203 of 24 December 2025, significant amendments were introduced to the Fiscal Code, including changes to the taxation regime applicable to microenterprises. The most important change is the return to a flat tax rate of 1%, applicable starting with 2026.
As a result, the 3% tax rate, temporarily introduced for the period 2024–2025 depending on the level of income earned and the type of activities carried out, is eliminated. The microenterprise regime thus returns to its previous structure, last applied in 2023, when taxation was determined exclusively by a 1% rate applied to revenues.
Background of the Previous Amendments
In 2024 and 2025, tax legislation established a differentiated taxation system for microenterprises:
- a 1% rate applied to entities with revenues of up to EUR 60,000, which did not carry out certain activities expressly provided for by law;
- a 3% rate applied to microenterprises with revenues exceeding this threshold or to those operating in fields such as IT, HoReCa, legal services, medical activities, and other specific services.
Given the interdependent nature of these criteria, the elimination of the 3% rate implicitly leads to the removal of all references in the Fiscal Code to the EUR 60,000 sub-threshold and to the list of activities subject to increased taxation.
Correlation with the Reduction of the Eligibility Threshold
The return to the flat 1% rate is closely linked to another major amendment already established by GEO No. 156/2024: the reduction of the eligibility threshold for the microenterprise regime from EUR 250,000 to EUR 100,000, effective as of 1 January 2026.
According to the explanatory memorandum, this measure aims to reduce tax compliance costs and simplify the method of tax calculation, given that the number of eligible microenterprises has significantly decreased in recent years. In this context, maintaining a differentiated rate system was no longer justified.
Key Points to Remember
It is important to note that all other conditions for applying the microenterprise regime remain unchanged. Companies that do not meet the legal criteria will be required to apply the corporate income tax regime, at a rate of 16%.
Through this amendment, the microenterprise regime becomes more predictable and easier to apply, offering a simplified tax framework for entities that fall within the new threshold.