Romania - Fiscal changes coming soon - Need Plan B

[MRot]

Latest news just in.
Appears the limit on 30% profitability is not off the table, and a Micro Corporate with a profit margin of >30% will have to pay 16% Corporate Tax rate.

Coaliția s-a pus de acord pe măsurile fiscale. Printre puținele modificări decise, cozonacul scapă de acciză

Măsurile fiscale au fost stabilite în proporție de 99% la ședința Coaliției din seara anterioară, forma aceastora fiind în linie cu ce a apărut până în prezent în spațiul public, au declarat pentru Profit.ro surse guvernamentale. Astfel, rămân în picioare măsuri precum impozitarea companiilor pe...

www.profit.ro

 

[accountantromania]

My best guess is, that we will see an increase from 1% to 3% for microcompanies, 30% profitability will not be a measure,
dividend tax stays at 8%. The requirements to qualify as a microcompany under Romanian law will remain the same.

 

[theotheo]

Right now, it seems they changed their mind and leave the 16%CIT
The total cost would be 3% Turnover then Social contributions for keeping 1 employee to remain micro (3600EUR annualy) then 8% Dividend tax, then Social contributions for Dividend over 24 Minimum salary (1900 EUR)

Romania lost 1st place and fall behind Poland, Bulgaria, Cyprus for income over 100K but still could be attractive (Latin alphabet, not cold like Poland, people friendly)

 

[myhand]

Hello all

Romanian government is currently trying to enforce a fiscal reform that will remove Romania as good destination for freelancers and they want it operating in September 2023
For a microcompany (LLC)
The Dividend Tax 8% goes to 10%
The threshold for 1%CIT tax will be limited to 60K EUR, anything above will be taxed as 3% (with limit of 500k eur for staying a micro)
If your profit is over 30%, you ll be taxed 16%

In total, the tax burden goes to 9% into 29% nearly (without social contributions counted)

I am currently living and will be tax resident of Romania and I am looking for your advice for a solution to stop the bleeding
- I can leave to another country or I can stay
- I need to stay in EU
- I can delay payments from my client

Thank you

move all over into a UK LTD which you don't own officialy and you will be good. or use an invoice model for future.

 

[Researcher]

Hello all

Romanian government is currently trying to enforce a fiscal reform that will remove Romania as good destination for freelancers and they want it operating in September 2023
For a microcompany (LLC)
The Dividend Tax 8% goes to 10%
The threshold for 1%CIT tax will be limited to 60K EUR, anything above will be taxed as 3% (with limit of 500k eur for staying a micro)
If your profit is over 30%, you ll be taxed 16%

In total, the tax burden goes to 9% into 29% nearly (without social contributions counted)

I am currently living and will be tax resident of Romania and I am looking for your advice for a solution to stop the bleeding
- I can leave to another country or I can stay
- I need to stay in EU
- I can delay payments from my client

Thank you

So did they enforce it? Is Romania still a good solution for freelancers and IT business tax optimization? Or not anymore?

 

[AlicaFunk]

Go with Bulgaria much better place.

 

[Dexur]

It's still alright in Romania. The taxes a bit higher, but it's still a good option to incorporate

 

[Researcher]

Is Romania or Bulgaria better for IT freelancer making around 50k$ a year and cashing out some crypto?

Go with Bulgaria much better place.

What makes Bulgaria better?

 

[GrumpyMess]

Is Romania or Bulgaria better for IT freelancer making around 50k$ a year and cashing out some crypto?


What makes Bulgaria better?

With 50k better go to Czech republic

 

[Researcher]

With 50k better go to Czech republic

Czech Republic has 0% crypto tax? What are the tax benefits there?

 

[GrumpyMess]

Czech Republic has 0% crypto tax? What are the tax benefits there?

No, but you can get an effective tax rate as self employed around 13%

 

[Researcher]

No, but you can get an effective tax rate as self employed around 13%

That's high and 15% is horrible for cashing out crypto when other countries offer 0%.