For many small companies in Romania, the micro-company regime is the most advantageous form of taxation. Unlike profit tax, which applies to the difference between income and expenses, the micro-company tax applies to total revenue — a fixed percentage of turnover, regardless of costs. For a company with a healthy margin and low expenses, this mechanism can mean a significantly lower effective tax burden.
For international investors operating a Romanian subsidiary (SRL), this regime is particularly relevant: it simplifies ongoing taxation and makes planning and reporting to the parent company easier. At the same time, the rules change frequently — the revenue threshold, the rates and the eligibility conditions have been adjusted almost every fiscal year recently. A correct Romania micro-company tax calculation therefore means more than multiplying revenue by a percentage; it also means confirming, up to date, that the company still qualifies.
This guide explains the calculation logic, the eligibility conditions, the taxable base, the rates and the payment deadlines — focusing on the principles that remain valid even when the figures change.
What the micro-company tax actually is
A micro-company is not a legal form but a tax regime applied to a company (SRL). A company that meets the legal conditions pays tax on the revenue it earns, not on its profit. The practical consequence is essential: even if the company has little or no profit, the tax is due as long as there is revenue.
This makes the regime very attractive for high-margin businesses (services, IT, specialised consulting, trade with good markup). For low-margin businesses with heavy expenses, profit tax may be more favourable. Choosing correctly between the two regimes is a matter of tax planning worth reviewing annually.
Eligibility conditions
To apply the regime, the company must meet several conditions simultaneously at the end of the previous fiscal year:
- Revenue threshold — earned revenue must not exceed a ceiling expressed in euro. This ceiling has been reduced progressively in recent years, with a downward trend. Check the value in force for the reference year.
- Type of activity — certain fields are excluded (for example banking and insurance, gambling, capital markets); the share of revenue from consulting and management is also limited.
- Employee condition — to benefit from the reduced rate, the company must generally employ at least one worker (full-time or equivalent). Companies with no employees may be excluded from the regime or pay a higher rate.
- Shareholding structure — there are limits on the number of micro-companies held by the same shareholders, to prevent artificial fragmentation.
Because each of these thresholds can change from one year to the next, we recommend a formal eligibility check at the start of each fiscal year. See how we help with this analysis.
The tax rates
The micro-company tax is calculated by applying a percentage rate to the taxable base. In recent years there have mainly been two rates, differentiated by revenue level and type of activity:
| Indicative rate | Typical situation |
|---|---|
| Reduced rate (e.g. 1%) | Companies below a certain threshold that meet the employee condition |
| Higher rate (e.g. 3%) | Companies above that threshold or carrying out certain activities |
The rates and thresholds above are indicative for reference year 2026 and may change; verify the values in force before calculating. The constant principle is that the percentage applies to revenue, not to profit.
Which revenue counts toward the base
The taxable base is not simply the total of the revenue account. The law provides that certain items are deducted from the base, among them:
- revenue related to inventory and work in progress;
- revenue from the production of tangible and intangible assets;
- revenue from subsidies;
- revenue from provisions and their reversal;
- revenue from exchange rate differences (treated differently under certain conditions);
- insurance compensation for damages.
Conversely, certain items such as favourable exchange rate differences and commercial discounts received after invoicing are added to the base at year-end. A correct calculation therefore requires detailed knowledge of the nature of each revenue item — a common mistake is applying the rate directly to gross turnover.
How to calculate, step by step
- Determine quarterly revenue — the total revenue recorded in the quarter.
- Adjust the base — deduct items excluded by law and add those expressly provided for.
- Apply the rate in force — multiply the taxable base by the applicable percentage (reduced or higher).
- Declare and pay — the tax is reported via the relevant declaration (form 100) and paid quarterly.
Illustrative example: a company with quarterly revenue of 200,000 lei applying a 1% rate would owe roughly 2,000 lei (200,000 × 1%). At a 3% rate the tax would be about 6,000 lei. The example shows why correct classification into the reduced rate has a major financial impact.
Declaration and payment deadlines
The micro-company tax is quarterly. Declaration and payment are generally due by the 25th of the month following the quarter.
| Quarter | Indicative deadline |
|---|---|
| Q1 | 25 April |
| Q2 | 25 July |
| Q3 | 25 October |
| Q4 | 25 January (following year) |
When the deadline falls on a non-working day, it moves to the next working day; check the fiscal calendar for the current year.
Leaving the regime
If during the year the company exceeds the revenue threshold or breaches an eligibility condition, it generally becomes a profit-tax payer from the quarter in which the breach occurred. For a foreign parent company, this transition matters for group planning and for applying double taxation treaties. Monthly monitoring of revenue is essential for companies close to the threshold.
Conclusion
The micro-company tax can be very advantageous, but accuracy depends on three things: valid eligibility, correct determination of the taxable base, and applying the right rate on time. Because the legislation changes often, an up-to-date check is not optional. Conta Fiscal analyses your company’s specific situation, confirms eligibility and calculates the tax correctly, so you pay neither more nor less than you should. Contact us for an assessment of the tax regime that fits your business.
Frequently asked questions
What is the difference between micro-company tax and profit tax?
Micro-company tax applies to total revenue (a percentage of turnover), while profit tax applies to the difference between income and expenses. For high-margin companies, the micro regime is usually more advantageous.
Do I need an employee to be a micro-company?
To benefit from the reduced rate, the company generally must employ at least one full-time worker or equivalent. Companies with no employees may be excluded or pay a higher rate. Check the condition in force for the current year.
Is the tax due even if the company has no profit?
Yes. Because the tax applies to revenue rather than profit, it is due as long as the company earns revenue, regardless of whether the accounting result is a profit or a loss.
When is the micro-company tax paid?
The tax is quarterly and is generally declared and paid by the 25th of the month following each quarter (25 April, 25 July, 25 October and 25 January).
What happens if I exceed the revenue threshold?
If you exceed the threshold or breach an eligibility condition during the year, the company generally becomes a profit-tax payer starting from the quarter in which the breach occurred.