According to OUG No 156/2024, published in the Official Gazette (Part I) No 1334 of December 31, 2025, the tax regime applicable to micro-enterprises has undergone significant restrictions. The income limit eligible for this regime has been halved from 2025 and will fall to EUR 100,000 from 2026.
Eligibility criteria for micro-enterprises
Qualifying under these limit s is based on the income realized on December 31 of the previous year.
- For tax year 2025, the limit for eligible income is €250,000.
- From January 1, 2026, the limit decreases to €100,000.
If, on December 31, 2024, the income exceeds €250,000, the microenterprise will switch to the corporate income tax regime from 2025. Similarly, if revenues exceed €100,000 as of December 31, 2025, it will switch to corporate income tax from 2026.
Types of income included in the limit
For determining eligible income:
- Include only income generated from economic activities carried out by sole proprietors through authorized organizational forms (e.g. PFA, II, IF).
- Income from rents or royalties earned directly by the individual without the use of an authorized organizational form is not taken into account.
Definition of micro-enterprise under Article 47 of the Tax Code
A microenterprise is a Romanian legal entity that cumulatively meets the following conditions on December 31 of the previous tax year:
- Realized revenues of less than EUR 250,000 (for 2025) or EUR 100,000 (from 2026 onwards), calculated at the exchange rate valid at the close of the financial year.
- The share capital is held by natural or legal persons other than the State or administrative-territorial units.
- It is not in the process of dissolution or liquidation.
- It has at least one employee (except in cases covered by Article 48(3)).
- It has filed its annual financial statements on time, as required by law.
Additional income verification criteria
The income of the Romanian legal entity is taken into account together with the income of related enterprises. These include:
- Income of other legal entities in which the microenterprise directly/indirectly owns more than 25% of the voting rights or equity securities.
- Income of partners/shareholders who carry out economic activities through PFA, II, IF or other authorized forms.
Impact for taxpayers
The reduction of the limit for micro-enterprises significantly limits the applicability of this tax regime, forcing many entities to switch to corporate income tax. It is important for legal entities to monitor annual revenues and ownership structure to determine eligibility under the microenterprise regime.