GOOD PRACTICE

01. / This is a: / a good practice
02 / Title of measure / Income tax for micro enterprises
03 / Country / Romania
04 / Language / English
05 / Responsible organisation / Ministry of Public Finance
06 / Contact details / Mihai HURA
17, Apolodor Street, Sector 5, Bucharest
e-mail:

07 / Charter action line / Cheaper and faster start-up/Better regulation
08 / Description of the measure / According to the provisions of the Law no. 571/2003 on Fiscal Code, with further amendments, micro enterprises have a special taxation regime, named income tax for micro enterprises. A tax of 3% is applied on incomes, irrespective of their sources, with the exception of those provided by law.
A micro enterprise in the sense of this law is a Romanian legal person, that fulfil cumulative the following conditions, at 31 December of the previous financial year:
a) Develop the activity of production of goods, service provision and/or commerce;
b) Has 1 to 9 employees;
c) Realized incomes until 100.000 euro, equivalent sum in RON;
d) Has the registered capital owned by entities, other than the state, local authorities and public institutions.
09 / Objectives / Support for SMEs
10 / Implementation / 1 January 2005
31 December 2006
11 / Expected/ targets
12 / Target group / Romanian micro enterprises, that fulfil cumulative the following conditions, at 31 December of the previous financial year:
a) Develop the activity of production of goods, service provision and/or commerce;
b) Has 1 to 9 employees;
c) Realize incomes not exceeding EUR 100.000, equivalent sum in RON;
d) Has the registered capital owned by entities, other than the state, local authorities and public institutions.
13 / Communication strategy / 1400 caract
14 / Assessment by national business organisations and entrepreneurs / 1.Have you consulted business organisations before submitting this measure? YES
2.If YES, please, include a summary of the assessment by national organisations
3. Please, indicate contact data of an entrepreneur or business organisation that could report on the successful implementation of the measure
15 / Result already achieved / 1400 caractere

GP year 2006 00.Unique ID w0980024 01.This measure is

A Good Practice

02. Title of the measure Income taxation for micro enterprises 03. Country Romania 04. Language EN 05. Responsible organisation Ministry of Public Finance 06. Contact details

Name / Mihai HURA
Address / 17, Apolodor Street, Sector 5, Bucharest
E-mail /
Website /

07. Charter action line Taxation 08. Description of the measure According to the provisions of the Romanian Law on Fiscal Code, with further amendments, micro enterprises have a special taxation regime, named income tax for micro enterprises. Microenterprises has the facility to choose between a unique level of taxation on profit of 16% or a tax of 3% applied on incomes, irrespective of their sources, with the exception of those provided by law. A micro enterprise in the sense of this law is a Romanian legal person, that fulfil cumulative the following conditions, at 31 December of the previous financial year: a) Develop the activity of production of goods, service provision and/or commerce; b) Has 1 to 9 employees; c) Realized incomes until 100.000 euro, equivalent sum in RON; d) Has the registered capital owned by entities, other than the state, local authorities and public institutions. 09. Objectives Support for SMEs; Reducing fiscality for SME´s 10. Implementation

Start Date / 1 January 2005
End Date / 31 December 2006

11. Expected impact / targets ( quantitative / qualitative ) Reducing fiscality for SME´s 12. Target group Romanian micro enterprises, that fulfil cumulative the following conditions, at 31 December of the previous financial year: a) Develop the activity of production of goods, service provision and/or commerce; b) Has 1 to 9 employees; c) Realize incomes not exceeding EUR 100.000, equivalent sum in RON; d) Has the registered capital owned by entities, other than the state, local authorities and public institutions. 13. Communication strategy The initiative was posted on the Ministry´s web site 14. Assessment by national business organisations and entrepeneurs The fiscal facility was been introduced within the Romanian Law on Fiscal Code at the initiative of business associations 15. Results already achieved and, if available, some statistical information on the impact of the measure. In 2005 almost 60% of SME chose to pay the income tax of 3%,the level being maintained for 2006. 16. Evaluation 17. What makes this practice better than others? 18. Obstacles that had to be overcome and lessons learned 19. Additional information The facility will be improved by establishing income tax for microenterprises to 2% in 2007, 2,5% in 2008 . 20. This measure was inspired by the following Member State or Best Project (explain) -