Romania micro company

[D0naldDuck]

Hi guys,

Imagine you would have a romanian micro company with 1 employee hired --> 1% corporate tax on revenue (as long as revenue < 1mil).

Now your business outgrows the 1mil yearly revenue.

Now would it be illegal to just open multiple micro companies, so you can get more revenue taxed at only 1% of the revenue?
Couldnt find anything about that. Technically the companies could only focus on a specific country, or you could start a new company for every service you offer, so the companies dont "do the same".
Like XY SRL Consult, XY SRL Digital Services, XY SRL whateverelse.

Sounds a bit too good to be true

Best regards

EDIT: Just found out they decreased the threshold to 500k. (Romanian Govt. changes taxation for large micro-enterprises overnight)

 

[orangekangaroo]

The Government abandons the reduction of the tax threshold for micro-enterprises / PM Ciucă: We will not approve such an initiative

The provision that the threshold for SMEs to qualify for the 1% income tax decreases from €1 million to €500,000 from 1 January 2022 has disappeared from

economedia.ro

 

[D0naldDuck]

The Government abandons the reduction of the tax threshold for micro-enterprises / PM Ciucă: We will not approve such an initiative

The provision that the threshold for SMEs to qualify for the 1% income tax decreases from €1 million to €500,000 from 1 January 2022 has disappeared from

economedia.ro

Haha „predictable environment“. One reason more to check if you could open multiple micro SRLs

 

[Hyacinth]

Hi
Yes, you can open multiple SRL's as the law changed recently that you can be the sole proprietor of multiple SRL's (before it was only one)
You can even have the companies have 1 share out of 1000 from eachother.

A simple "calculation" will result in the fact that for 500000 euro you'd pay 15000 for 3% or 5000 at 1% BUT will have around 7200 euro salary costs (so 12200 euro total)
Not to mention the drudgery of having to do the paperwork and/or extra stuff for the employee... which in my opinion might not be worth it (because they have to be employed full time for this to benefit)
Depending on how much you plan to "gain" as profits remember that there is also a 5% (or 16% depending on case!) dividend at the end of the year on top of the 1%
Good luck.

 

[accountantromania]

Please be aware that meanwhile the law changed again starting from 1.1.2023, I elaborated here:

Offshore Company

Offshore Company Formation in any country, how to register a entity, reasons to register an entity offshore, positives and negatives, which jurisdictions should I choose and much more.

www.offshorecorptalk.com