APEB RO-UAE

Romania

SRL MICRO 1%

  1. Turnover may NOT exceed 60,000 euros in any one year.
  2. The company must employ at least 1 full-time person (or more than 1 part-time person, if their total hours worked are equivalent to a full-time job). The person employed may even be the manager of the firm with a mandate contract as long as minimum wage contributions are paid.
  3. NOT make more than 20% of the total income from consultancy or management.
  4. From 2024, a person can be a beneficial owner (owns more than 25% of the share capital) in a maximum of 1 micro-enterprise. If he is a partner in more than one micro-enterprise, he will have to decide which company will be entitled to apply the micro-enterprise income tax regime.

SRL MICRO 3%

  1. Turnover CANNOT exceed 500.000 euro in one year
  2. The company must employ at least 1 full-time person (or more than 1 part-time person, if their total hours worked are equivalent to a full-time job). The person employed can even be the manager of the firm with a mandate contract as long as minimum wage contributions are paid.
  3. NOT make more than 20% of the total income from consultancy or management.
  4. From 2024, a person can be a beneficial owner (owns more than 25% of the share capital) in a maximum of 1 micro-enterprise. If he is a partner in more than one micro-enterprise, he will have to decide which company will be entitled to apply the micro-enterprise income tax regime.

SRL PROFIT

  1. Corporate taxation is the standard form of company taxation in Romania and does not require a specific set of conditions to be met as in the case of micro-enterprises.
  2. If your company is a micro-enterprise and no longer meets any of the necessary criteria, it will automatically switch to corporate taxation. A firm can only apply for the micro-enterprise scheme once.

PFA SYSTEM

  1. Taxation under the real system (standard form) is the standard form of taxation of PFAs in Romania and is not restricted to a specific activity as in the case of taxation at the standard rate of income.
  2. Under the real system, PFAs can carry out several activities.
  3. From 2024 IT activities will be taxed under the real system and standard income taxation will no longer be available.

UAE

Companies VAT 5%

  1. Turnover may NOT exceed 90,000 euro (375,000 AED) in any one year.
  2. The company must employ at least 1 full-time person. The person employed may even be the manager of the firm with a mandate contract as long as minimum wage contributions are paid.

Corporate TAX 9%

  1. The value of corporate tax in the UAE depends on the taxable income:
    0% for taxable income up to 375,000 dirhams.
    9% for taxable income exceeding 375,000 dirhams.
    – There is a different tax rate for large multinational companies that meet certain criteria.
  2. A different tax rate will be imposed on large multinational corporations if they meet certain criteria under the Base Erosion and Profit Shifting project of the Organization for Economic Cooperation and Development. However, the specific tax rate has not yet been determined. More information about this will be provided in due course when the country implements the rules of the second pillar

Excise tax 50% to 100%

It is an indirect tax borne by the final consumer, imposed on goods that harm public health or the environment or luxury goods at varying rates. It is collected at one stage by suppliers and manufacturers. It is planned to impose this tax in the UAE at a rate of 100% on tobacco, 100% on energy drinks, and 50% on carbonated drinks.

Free Lancer

Freelancers in the United Arab Emirates may be exempt from taxes under certain conditions. According to the UAE Ministry of Finance, companies operating in free zones can enjoy a tax rate of zero percent on income derived from specific qualifying activities and transactions.

The main conditions for benefiting from this exemption are:

The company must be established, created, or registered in a free zone.

Activities must be carried out exclusively in or from the free zone.

The income earned from transactions with people based in the free zones, as well as domestic and foreign income arising from any of the ‘qualifying activities’ specified in the relevant ministerial decision, must be considered.

Non-qualifying revenues earned by the person based in the free zone should not exceed 5% of their total revenues or 5,000,000 Emirati dirhams, whichever is less.

Romania

  1. Turnover may NOT exceed 60,000 euros in any one year.
  2. The company must employ at least 1 full-time person (or more than 1 part-time person, if their total hours worked are equivalent to a full-time job). The person employed may even be the manager of the firm with a mandate contract as long as minimum wage contributions are paid.
  3. NOT make more than 20% of the total income from consultancy or management.
  4. From 2024, a person can be a beneficial owner (owns more than 25% of the share capital) in a maximum of 1 micro-enterprise. If he is a partner in more than one micro-enterprise, he will have to decide which company will be entitled to apply the micro-enterprise income tax regime.
  1. Turnover CANNOT exceed 500.000 euro in one year
  2. The company must employ at least 1 full-time person (or more than 1 part-time person, if their total hours worked are equivalent to a full-time job). The person employed can even be the manager of the firm with a mandate contract as long as minimum wage contributions are paid.
  3. NOT make more than 20% of the total income from consultancy or management.
  4. From 2024, a person can be a beneficial owner (owns more than 25% of the share capital) in a maximum of 1 micro-enterprise. If he is a partner in more than one micro-enterprise, he will have to decide which company will be entitled to apply the micro-enterprise income tax regime.
  1. Corporate taxation is the standard form of company taxation in Romania and does not require a specific set of conditions to be met as in the case of micro-enterprises.
  2. If your company is a micro-enterprise and no longer meets any of the necessary criteria, it will automatically switch to corporate taxation. A firm can only apply for the micro-enterprise scheme once.
  1. Taxation under the real system (standard form) is the standard form of taxation of PFAs in Romania and is not restricted to a specific activity as in the case of taxation at the standard rate of income.
  2. Under the real system, PFAs can carry out several activities.
  3. From 2024 IT activities will be taxed under the real system and standard income taxation will no longer be available.
Tax Details Value
Your Profit (the money you keep)- The amount you can use as an individual if you decide to withdraw all the money from the company after paying all taxes. If you want to keep the profits in the company, you will not pay the dividend tax and CASS. 55,080
Total taxes paid- The total amount of contributions you have to pay if you want to withdraw all the money from the company. 34,920
. . . . . .

UAE

  1. Turnover may NOT exceed 90,000 euro (375,000 AED) in any one year.
  2. The company must employ at least 1 full-time person. The person employed may even be the manager of the firm with a mandate contract as long as minimum wage contributions are paid.
  1. The value of corporate tax in the UAE depends on the taxable income:
    – 0% for taxable income up to 375,000 dirhams.
    – 9% for taxable income exceeding 375,000 dirhams.
    – There is a different tax rate for large multinational companies that meet certain criteria.
  2. A different tax rate will be imposed on large multinational corporations if they meet certain criteria under the Base Erosion and Profit Shifting project of the Organization for Economic Cooperation and Development. However, the specific tax rate has not yet been determined. More information about this will be provided in due course when the country implements the rules of the second pillar

It is an indirect tax borne by the final consumer, imposed on goods that harm public health or the environment or luxury goods at varying rates. It is collected at one stage by suppliers and manufacturers. It is planned to impose this tax in the UAE at a rate of 100% on tobacco, 100% on energy drinks, and 50% on carbonated drinks.

Freelancers in the United Arab Emirates may be exempt from taxes under certain conditions. According to the UAE Ministry of Finance, companies operating in free zones can enjoy a tax rate of zero percent on income derived from specific qualifying activities and transactions.

The main conditions for benefiting from this exemption are:

The company must be established, created, or registered in a free zone.

Activities must be carried out exclusively in or from the free zone.

The income earned from transactions with people based in the free zones, as well as domestic and foreign income arising from any of the ‘qualifying activities’ specified in the relevant ministerial decision, must be considered.

Non-qualifying revenues earned by the person based in the free zone should not exceed 5% of their total revenues or 5,000,000 Emirati dirhams, whichever is less.