Ministry of Finance proposes changes to the micro-enterprise tax regime to exclude some incomes from the €100,000 threshold, the extension of the deadline for hiring an employee in start-ups and the introduction of more flexible rules for returning to the micro-enterprise regime.
”It is proposed that income from the transfer of fixed assets and land will not be included in the ceiling equivalent in lei to €100,000, which will be determined on the basis of income taken into account in the calculation of turnover as defined by the applicable accounting regulations. At the same time, a restriction is introduced on the transfer of no more than one tangible fixed asset from each sub-group fixed assets/land during a tax year”, says the draft law on economic recovery measures published by the Ministry of Finance.
The measure removes a distortion in the current tax regime, where an occasional fixed asset/land transfer transaction can lead to a change in the tax regime, according to Agerpres.
It also supports the upgrading of micro-enterprises by encouraging asset modernization. The proposed provision maintains the inclusion of income from the transfer of fixed assets/land in the taxable base of the tax on micro-enterprise income, the initiators of the draft explain.
Another proposed amendment allows firms to revert to the micro-enterprise regime from the beginning of a calendar year, if they meet the legal conditions, regardless of previous applications of this regime.
In the case of newly established micro-enterprises, the deadline for hiring the first employee would be extended from 30 to 90 days from the date of registration, as the current period is considered insufficient, especially for start-ups.
The draft also clarifies the situation of micro-enterprises with only one employee.
”Where the micro-enterprise has only one employee and the related employment contract is terminated, the 30-day deadline for hiring a new person is maintained and it is proposed that if this condition is not met, the exit from the micro-enterprise regime should apply from the quarter following the quarter in which the employment relationship ended”, reads the explanatory memorandum accompanying the draft.
