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Corporate income tax in Romania is a key part of the country’s tax system, defining the responsibilities of businesses operating within its borders. From Romanian legal entities to foreign companies with a permanent presence, the CIT framework includes specific rates and rules for different types of activities. Understanding these details is important for staying compliant and making informed financial decisions in this European market.
In this article, we provide a structured overview of key rates, obligations and information that should help you better understand the corproate income tax in Romania.
Romanian legal entities (e.g., SRL, SA)
Foreign entities with permanent establishments in Romania
Associations without legal personality
Applicable to most Romanian companies, foreign companies operating through a permanent establishment in Romania and foreign companies considered tax residents due to their place of effective management.
The taxable profit is determined by adjusting accounting profit with specific non-deductible expenses and non-taxable income. These adjustments include:
Fully deductible expenses: Expenses incurred wholly and exclusively for business purposes are generally deductible (Wages and social contributions, Rent, utilities, materials, depreciation of fixed assets (according to tax rules), marketing and advertising, interest and loan costs (within limits)
Limited deductibility: Certain expenses have deductibility limits, such as:
Meeting your corporate income tax obligations in Romania involves a clear timeline for filings and payments. Companies can choose between two systems, actual profit or estimated basis, each with its own rules for calculation and deadlines. Understanding these options is key to avoiding penalties and optimizing your cash flow planning.
Quarterly CIT payments: Based on actual results (or estimated, if chosen); due by the 25th of the month following each quarter
Advance payments: Taxpayers must make quarterly advance payments by the 25th day of the first month following each quarter. Available under the estimated annual basis system (opt-in only, with prior notice)
Annual CIT return: The annual CIT return is due by the 25th day of the third month after the end of the fiscal year. For the period 2021–2025, the deadline is extended to the 25th of June
Romania’s microenterprise tax regime offers a simplified tax system for small businesses, applying a flat tax rate on turnover instead of profit. However, not all businesses remain eligible indefinitely. If a company exceeds certain thresholds it is automatically transitioned to the corporate income tax (CIT) regime. This shift can have significant financial and reporting implications, so it’s important for companies to monitor their status throughout the year. Here’s when and how the switch happens:
A microenterprise becomes subject to CIT during the year if it:
Ready to dive deeper into taxes in Romania? Our free eBook provides a solid overview on corporate and personal income taxes, contributions, value-added tax and other fiscal obligations.
Staying compliant with corporate income tax in Romania requires more than knowing the rules. It demands consistent attention to detail, timely filings and strategic planning. At Accace, we support companies of all sizes with expert tax advisory and compliance services in Romania tailored to the local regulatory landscape. Whether you’re transitioning from the microenterprise regime, dealing with cross-border operations, or optimizing deductions, our experienced Romanian tax team is here to guide you through it. Let us help you simplify your tax obligations so you can focus on growing your business.
About Accace
Accace is a proactive consultancy and outsourcing partner who bridges the gap between needs and solutions. Combining smart and streamlined technology with a holistic approach, we provide an all-round care to clients and consider their matters as our own. With over 800 experts and approximately 2,000 customers, we have vast experience with facilitating the smooth operation and growth of small to large-scale, global businesses.
About Accace Circle
Accace operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience and erase the borders of service delivery. Covering over 60 jurisdictions with more than 7,000 professionals, we support over 80,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and process at least 800,000 pay slips globally.
