Microenterprise tax orcorporate incometax?

In 2026, the microenterprise tax rate is 1%, applied to the revenue forming the tax base.

All conditions set out in the Fiscal Code must be met to apply the regime. The most important include:

• revenue not exceeding the equivalent of EUR 100,000;
• at least one employee, subject to the exceptions and deadlines provided by law;
• annual financial statements filed on time;
• compliance with the rules on linked enterprises and shareholders’ holdings;
• an activity that is not excluded from this regime.

Where applicable, the threshold is checked taking into account the revenue of linked enterprises as well.

If the threshold of EUR 100,000 is exceeded during the year, or a legal condition is no longer met, the company becomes liable for corporate income tax from the quarter in which that situation arises.

Leaving the regime and updating the registered tax obligations must be reported to ANAF within the deadlines and using the forms required by law.

Companies that do not meet the conditions for the microenterprise regime generally pay tax at a rate of 16% of taxable profit.

Taxable profit is determined from the company’s revenue and expenses, adjusted for deductible and non-deductible tax items.

For dividends distributed from 1 January 2026, the tax rate is 16%.

Individual shareholders may also be liable for the health insurance contribution if their total relevant income exceeds the annual thresholds set by law.

The applicable regime should not be assessed solely by comparing tax rates. Profit margin, expenses, investment plans, employee numbers, group structure and expected revenue growth all matter.

Eligibility for the microenterprise regime and the timing of a change in tax regime must be assessed for each company’s specific circumstances.