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10 facts about taxation in Romania | Infographic

March 4, 2024
This article is also available in
Romanian

Targeting both established business owners but also future entrepreneurs, our summary of 10 facts about taxation is an essential overview of the Romanian tax system. Find out more below in the infographic, or refer to our Tax Guideline for Romania for a more complex overview on the topic.

CIT
16%

Special rate for gambling activities and nightclubs: 5% of the revenue, or 16% on the taxable profit

MICRO-ENTERPRISE TAX RATES
1%
STANDARD VAT
19%
REDUCED VAT
5%* for supplies of social housing under certain conditions and to schoolbooks, newspapers, magazines, including those recorded on electromagnetic or other media.

9%** for water, food & beverage industry (save for certain items specifically excluded by the law), medical treatments and prosthesis, hotel accommodation, restaurant and catering services, provision of social housing under certain conditions, entrance fees to sports events, castles, museums and cinemas

WITHHOLDING TAX
8% for revenues obtained from dividends

50% for payments made by Romanian companies into non-resident companies bank accounts that are open in countries that do not have an information exchange agreement concluded with Romania and only if such payments result from artificial transactions

16% for any other revenues from Romania

PIT

10%

0% for IT specialists, employees with disabilities, employees who work in research and development or Technological Development field and employees who work in construction field, agriculture and the food industry, under certain conditions

SOCIAL SECURITY AND HEALTH INSURANCE CONTRIBUTIONS – EMPLOYEE

45%

SOCIAL SECURITY AND HEALTH INSURANCE CONTRIBUTIONS – EMPLOYER

2.25%

TAX LOSSES

Losses may be set off against the same types of income 

Losses that cannot be set off may be carried forward for 5 years

TAX FOR COMPANY-OWNED BUILDINGS

0.08% – 0.2% of the buildings’ tax value for residential buildings

0.2% – 1.3% of the buildings’ tax value for non-residential buildings

5% in case the building owner has not updated the taxable value of the building in the last 5 previous years

*A more detailed overview:

  • school textbooks, books, newspapers and magazines, except those intended exclusively or principally for advertising
  • admission fees to castles, museums, memorial houses, historical monuments, architectural and archaeological monuments, zoological and botanical gardens, amusement parks and recreational parks whose activities fall under CAEN codes 9321 and 9329, fairs, exhibitions and cultural events, sporting events, cinemas, other than those exempted from tax
  • supplies of social housing under certain conditions, including the land on which it is built
  • the right to use sports facilities whose activities fall under CAEN codes 9311 and 9313 for the purpose of practising sport and physical education, other than those exempted
  • delivery of eco food, traditional and mountain foods
  • transportation of persons for tourism or leisure purposes
  • supplies and installation of PV panels, under certain conditions set forth by the law

**A more detailed overview:

  • the supply of dental prostheses and their accessories, except for tax-exempt dental prostheses
  • the supply of orthopaedic products
  • supply of medicines for human and veterinary use
  • the supply of the following goods: food, including beverages for human and animal consumption (except for alcoholic beverages and non-alcoholic ones falling under NC 2202 10 00 and 2202 99, which are taxed at 19%), live domestic animals and poultry, seeds, plants and ingredients used in the preparation of food, products used to supplement or replace food
  • the supply of water for irrigation in agriculture;
  • the supply of fertilisers and pesticides used in agriculture, seeds and other agricultural products for sowing or planting, and the supply of services of a specific type used in agriculture
  • water supply services
  • sewerage services
  • accommodation in the hotel sector or in sectors with a similar function, including the land rental land for camping purposes
  • restaurant and catering services, except for alcoholic beverages and non-alcoholic beverages falling under NC 2202 10 00 and 2202 99
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