Exceeding the micro-enterprise threshold in 2025: what follows in 2026

Exceeding the micro-enterprise threshold in 2025: what follows from 2026

Starting from January 1, 2026, the threshold for classification as a micro-enterprise will be reduced to the equivalent in local currency of 100,000 euros, according to Government Emergency Ordinance no. 156/2024, published in Official Monitor no. 1334/31.12.2024. This change brings a significant adjustment to the tax regime, with direct impact on the financial planning of small and medium-sized enterprises.

A paradigm shift in taxation

Until the end of 2025, micro-enterprises benefit from the current threshold of 250,000 euros. Exceeding this level during the year, however, leads to loss of micro-enterprise status and transition to profit tax (16%), starting from the quarter in which the threshold was exceeded. Additionally, starting next year, most of these companies will have a monthly tax period for VAT, instead of quarterly. This change requires more careful tax management and stricter reporting.

For companies operating close to the threshold, revenue analysis becomes a priority. Continuous monitoring of turnover is essential, especially in the case of related enterprises, where revenues accumulate when determining the threshold.

Responsibility and compliance

Exceeding the threshold also requires an update of the fiscal vector through form 700, within the legal deadline. At the same time, firms must review their depreciation policy, the treatment of deductible expenses, and any tax losses, with the transition to profit tax. Failure to update the fiscal status in time may result in tax recalculations, penalties, and risks of non-compliance in case of an audit.

To avoid these situations, Geseidl recommends conducting a tax simulation by the end of Q3 2025, to identify the real impact of the changes and decide whether it is appropriate to maintain the micro-enterprise status or the planned transition to the profit regime.

This change should not be seen merely as a tax obligation, but as a opportunity for optimization and reorganization. A well-planned transition can bring long-term benefits through more transparent accounting, easier access to financing, and a more predictable tax structure.

The team from Geseidl Consulting Group can support you with:

• monthly monitoring of the threshold and accumulated revenues;
• preparation of documentation for updating the fiscal vector;
• fiscal impact simulations and tailored solutions for the transition to profit tax.