Definitions and categories

An entrepreneur is considered a legal person that acts within its own private economic or professional activity.

As a taxpayer, each entrepreneur is forced by law to pay tariffs, taxes or social security and health care contributions, as well as to withhold tax at source.

A taxation regime does not depend on the organizational form and legal personality of the individual holding the commercial status.

In this case, determinant is the turnover performed during a taxable period (calendar year).

The entrepreneurs, according to the tax regime and tax liabilities of a taxpayer, are categorized as follows:

• Taxpayers of income tax and added value tax
• Taxpayers of simple income tax and added value tax (VAT)
• Taxpayers of simple added value tax.

Tax liabilities for each category
Taxpayers of profit tax and added value tax
The tax responsibilities, hence the tax liabilities that they shall fulfil are:

• The Added Value Tax;
• The Income tax;
• The Tax on personal income from employment (in the form of withholding the tax at source);
• The Tax on personal income from services rendered from third parties, distribution of dividends, etc. (in the form of withholding the tax at source);
• The Social security contributions;
• The Contributions on health care service;
• The National tax (accordingly to the type of the activity/ nature of the field of tax application)
• The Local tax.

Taxpayers of simple income tax and added value tax (VAT)
The tax responsibilities, hence the tax liabilities that they shall fulfil are:

• The Added value tax;
• The Simple income tax;
• The Tax on personal income from employment (in the form of withholding the tax at source) for the employee;
• The Tax on personal income from services made by third parties, distribution of dividends, etc. (in the form of withholding the tax at source);
• The Social security contributions;
• The Contributions on health care service;
• The National tax (accordingly to the type of the activity/ nature of the field of tax application)
• The Local Tax.

Taxpayers of simple income tax
The tax responsibilities, hence the tax liabilities that they shall fulfil are:

• The Added Value Tax;
• The Simple income tax;
• The Tax on personal income from employment (in the form of withholding the tax at source) for the employee;
• Tax on personal income from services made by third parties, distribution of dividends, etc. (in form withholding the tax at source);
• The Social security contributions;
• The Contributions on health care service;
• The National tax (accordingly to the type of the activity/ nature of the field of tax application)
• The Local Tax.