Allo' Expat Romania - Connecting Expats in Romania
Main Homepage
Allo' Expat Romania Logo

Subscribe to Allo' Expat Newsletter
Check our Rates
   Information Center Romania
Romania General Information
Romania Expatriates Handbook
Romania and Foreign Government
Romania General Listings
Romania Useful Tips
Romania Education & Medical
Romania Travel & Tourism Info
Romania Lifestyle & Leisure
Romania Business Matters
Romania Business
Taxation in Romania
  Sponsored Links

Check our Rates

Taxation in Romania

Corporate Tax

Taxation rate: 16%

Resident companies are taxed on their worldwide income; non-resident companies are taxed only on Romanian-source income. A company is resident if incorporated under Romanian law or if its place of effective management is in Romania. Small companies, defined as companies with between one and nine employees and a turnover under €100,000, are taxed at a 3% rate on income, with the exception of companies that derive more than 50% of their income from consultancy and management services.

General partnerships, limited partnerships and partnerships limited by shares are considered legal persons in Romania and corporate tax is charged at the entity level.

Dividends paid to resident corporate and individual shareholders are subject to a final 10% withholding tax.

Individual Tax

Taxation rate: 16%

Resident individuals are taxed on their worldwide income; non-residents are taxed only on Romanian-source income. A taxpayer whose domicile or centre of vital interests is in Romania, or who is present in Romania for 183 days in a 12-month period, is considered to be resident. The income of individuals is taxed at a rate of 16%. Dividends and interest paid to resident individuals are subject to a 10% final withholding tax.

Capital Gains

Taxed as income

Capital gains are generally taxed as income.

Indirect Tax

VAT standard rate: 19%

Value-added tax (VAT) applies to most transactions. The standard rate of VAT is 19% and a reduced rate of 9% applies to books, newspapers, medicines and hotel services. Exports are zero-rated. Exemptions include medical, educational, social, financial and banking services.

Registration is compulsory for businesses with an annual taxable turnover above RON 120,000, but voluntary registration is possible below this level. Non-EU suppliers must appoint a VAT representative in Romania and the EU suppliers should register for VAT purposes, unless the reverse-charge mechanism applies to the transaction.

The Romanian VAT legislation has been harmonised with the provision of the EU VAT Directive starting January 2007.

See more information on the next page... (next)




copyrights ©
2015 | Policy