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Comparative Fiscal Analysis of Taxation of Income Obtained by Micro-Enterprises in Romania

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Year 2013 brought major changes in taxation of income obtained by micro- enterprises in Romania, therefore the fiscal analysis aims to clarify fundamental matters as regards the object and subject of taxation, tax base and calculation method, declaration and payment of micro-enterprises income tax. We chose a comparative analysis for three basic reasons, namely: (i) taxation principle change occurred: the option to apply the income taxation system has become a liability for the payment of microenterprises income tax, in compliance with certain conditions; (ii) taxation system has an impact on legal persons in Romania, considering that many of them get annual taxable income below 65,000 EUR; (iii) any corporate income tax / income tax payer must annually review the conditions imposed for micro-enterprises and decide which is the system of taxation for the next fiscal year. In the absence of periodic review, fiscal risks of distorting tax liabilities are significant.

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