The commencement of the new year has brought about significant modifications to Romanian fiscal legislation, impacting more than 1.2 million companies within the nation. These adjustments encompass the mandatory enrollment of all companies in the RO e-Invoice system, limitations on the number of microenterprises an entrepreneur may possess, a VAT escalation for specific activities, and modifications to the taxation of meal vouchers. A study conducted by Crowe Romania has revealed that these alterations have generated an atmosphere of uncertainty within the business sphere, influencing decision-making processes and potential new investments.
Mitel Spătaru, Tax Partner at Crowe Romania, has observed a diverse array of responses from business leaders with regards to these fiscal amendments. Some have chosen to eliminate certain employee benefits and substitute them with more advantageous alternatives, while others have contemplated raising prices to accommodate tax hikes or to procure necessary new investments for digitalization. Nonetheless, microenterprises have encountered even more pronounced challenges, as evidenced by the low enrollment rate of just 11% in the RO e-Invoice system. The lack of predictability has cast ambiguity over the 2024 company balance sheets, particularly in relation to potential new investments.
Crowe Romania has outlined the principal fiscal changes that have been enacted, including the following:
– The curtailment of an entrepreneur’s ownership of multiple microenterprises, with a new constraint set at holding more than 25% of shares/social parts in just one microenterprise.
– The imperative for microenterprises to submit financial statements by the conclusion of March 2024 to sustain their status.
– Mandatory enrolment in the RO e-Invoice system for the majority of companies, with the initial phase necessitating the reporting of all invoices issued to other companies and public institutions.
– VAT increases from 5% to 19% for various activities, such as access to fairs, amusement parks, and the delivery of bio-eco foods.
– The implementation of a 2% additional tax on turnover for banks, which will decrease to 1% from January 1, 2026.
– Adjustments to tax exemptions and deductions for independent contractors, alongside new regulations pertaining to sponsorship expenses and sports subscription expenses.
– Alterations to the taxation of meal vouchers and vacation vouchers, which are no longer exempt from health insurance contributions.
These changes carry profound implications for businesses, and decision-makers are currently grappling with the most effective strategies to navigate the evolving fiscal terrain. Additionally, managers and entrepreneurs are advised to seek guidance from authoritative sources to guarantee compliance with the new regulations and to mitigate the impact on their operations.
Crowe Romania, a distinguished member of the global Crowe network, has furnished an exhaustive analysis of these fiscal changes, offering valuable insights into their ramifications for businesses. Endowed with a regional presence in Bucharest, Cluj-Napoca, and Timisoara, Crowe Romania is well-equipped to lend support to companies contending with the challenges posed by the revised fiscal laws.
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