Micro-enterprises that have consultancy/management activity will no longer be required to switch to corporate tax

According to a draft law for the approval of the Government Ordinance 16/2022 adopted last week by the Parliament, micro-enterprises that have consultancy/management activity will no longer be required to switch to a profit tax of 16% if they exceed the ceiling of 20% of the revenues obtained in these areas.

The same legislative act also stipulates that: The inclusion in the new maximum annual ceiling of 500,000 euros will not apply to the revenues in 2022.
According to Government Ordinance 16, which was adopted in August 2022, it was stipulated that if during a fiscal year a micro-enterprise:

• they earn more than 500,000 euros
• it has a share of the total revenues from consultancy and/or management of over 20% inclusive

it will owe income tax starting with the quarter in which any of these limits were exceeded, without the possibility to opt for the next period to apply micro-enterprise tax.
“The Chamber of tax Consultants took note of the adoption in the Chamber of Deputies, as the decision-making body of the draft law 628/2022 on the approval of the Government Ordinance no. 16/2022, a draft which, in the form amended by the Committees for budget, Finance and banks, respectively for work and social protection, it eliminates a situation of flagrant discrimination against the tax advisor taxpayer.”

Thus, under the heading “income tax for micro-enterprises” it will be provided that it benefits from the status of micro-enterprise and the taxpayer who “earned revenues other than those from consultancy and/or management, except for revenue from tax consultancy, corresponding to the NACE code: 6920-”Accounting and financial audit activities; Tax advice”, more than 80% of total revenues (by the proposed amendment to supplement Article I, point 5, point f) of paragraph 1 of Article 47 of Go 16/2022).