Taxes in Romania
Romania is the financial and banking centre of East Europe. In addition, the state actively finances and supports companies, start-ups and support funds.
Romania is a developing country, a member of the EU since 2007. The fiscal system in Romania is being reformed by the state in order to bring it in line with the norms of the European Union.
What are the taxes
Withholding tax
The tax rate for dividend revenues derived by non-residents from Romania is 5%.
Corporate income tax
The corporate tax In Romania is set at 16% rate from the taxable profit obtained by a legal person in a fiscal year. The taxable income may differ from gross profit accounting, because not all expenses highlighted by a company in profit or loss are deductible, some of them being just partially deductible.
Personal income tax
For residents and non-residents with earnings within the country, a fixed income tax in Romania is charged at 16%. It is worth noting that educational programs, financial and banking services, and medical services are not subject to taxation.
If we talk about the collection on real estate, then its payment from the sale of property (subject to ownership for at least 3 years) has the following parameters:
- up to 200,000 RON – 3% of the amount;
- cost from 200,000 RON – rate 2% + 6,000 RON.
When selling real estate for which the ownership period is three years or more, the following conditions apply:
- rate 2% – property value up to 200,000 RON;
- rate 1% + 4,000 RON – from 200,000 RON.
Approved benefits
Income tax in Romania is not provided for such types of income:
Dividends received by one Romanian legal entity from another. After the entry of the country into the EU community, all dividends that come from legal entities-residents of the EU member states are not taxed, provided that this legal entity owns more than 25% of the company’s capital for a period of at least 2 years.
The difference resulting from the sale / pooling of capital of companies or the payment of bonuses by legal entities.
- Return income or discounts on non-deductible expenses.
- Income that is not taxed in accordance with legal agreements.
- Funds received during maternity leave.
- Insurance payments.
- Sponsorship.
- Funds provided as reimbursement for travel expenses.
- Inheritance.
- Donations.
Request bookkeeping solution
If you have a company in Romania, it is mandatory to do accounting and complete all taxation rules according to Romanian laws. Learn more about bookkeeping solution in Romania.
Tax system
All payments to the budget, depending on the form of their expression (paid directly, included in the cost of the goods, and so on), are divided into:
Direct
income and corporate tax
Indirect
excise tax, VAT, customs duties and registration fees
Business in Romania
Our company provides services for setting up a company in Romania. The specialists of our company have the necessary knowledge, experience and qualifications. We can offer a consultation with taxes in Romania. In addition, we also provide business support, accounting and other services necessary for your business. Our specialists have vast experience in this field of activity. We will be happy to help you successfully open a business in Romania.
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