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With a market of considerable potential, a strategic location, and a well-educated workforce, Romania continues to offer attractive opportunities for investors. However, the beginning of 2025 brings significant challenges due to the economic slowdown and stricter fiscal measures. GDP growth has been significantly lower compared to previous years, reaching only 1.5%, while the budget deficit has risen to 8.6% of GDP, creating additional pressure on the business environment.
Following its accession to the European Union in 2007, Romania continued the process of aligning with European directives, benefiting from funding for modernization and economic development. Nevertheless, in 2025, companies face a more restrictive tax regime, marked by the increase of the dividend tax from 8% to 10%, the reduction of the income threshold for microenterprises from EUR 500,000 to EUR 250,000, and the increase of the gross minimum wage to RON 4,050. These measures have a direct impact on operational costs and require greater focus on tax compliance and financial planning.
While Romania remains an attractive destination for investment, the fiscal environment is becoming more unpredictable, and companies must adapt their strategies to optimize costs and avoid risks associated with new regulations. As a result, outsourcing tax and accounting services is becoming an increasingly relevant solution for ensuring compliance and improving internal efficiency.
We hope the new Tax Guideline for Romania will provide all the necessary information for those who consider doing business in Romania, as well as for already existing businesses.
EU and EEA citizens can buy real estate properties (land and buildings) in the same conditions as Romanian citizens.
Non-UE/EEA citizens may acquire buildings in Romania, while land may be acquired only if there is an international agreement in place which also allows Romanian citizens to acquire land in the respective countries.
Legal forms of business
Before starting the investment in the Romanian market, the investors have to decide upon the legal form of business which will be used.
The types of business forms are stipulated by Law no. 31/1990 as republished and subsequently modified and completed, and there are compiled in the next table with specific information: the minimum share capital, the liability of the shareholders/stockholders, the minimum number of shareholders/stockholders.
The most common forms of business used in Romania are the Limited Liability Company along with the Joint Stock Company and Branches.
The form of business
Minimum capital (approx. in EUR)
Shareholders´ liability
Number of shareholders
English
Romanian
General Partnership
Societate in nume colectiv (S.N.C.)
N/A
The shareholders have unlimited and joint liability for social contributions.
No less than 2
Limited Partnership
Societate in comandita simpla (S.C.S.)
EUR 0.4
The limited partners have no management authority and they are not responsible for the debts of the partnership. They respond in the limit of the subscribed shares.
The general partners have management control and they have joint and several liabilities.
At least one limited partner and at least one general partner.
Limited Liability Company
Societate cu raspundere limitata (S.R.L.)
EUR 0.2
The shareholders respond in the limit of the contribution to the share capital.
1 – 50
Joint Stock Company
Societate pe actiuni (S.A.)
No less than EUR 25,000
The stockholders respond in the limit of the subscribed shares.
No less than 2
Company limited by shares
Societate in comandita pe actiuni (S.C.A.)
No less than EUR 25,000
The limited partners have no management authority and they are not responsible for the debts of the partnership. They respond in the limit of the subscribed shares.
The general partners have management control and they have joint and several liabilities.
No less than 2
Branch
Sucursala
N/A
The Mother Company is liable for its branch.
N/A
Sole entrepreneur
Persoana fizica autorizata (P.F.A.)
N/A
The sole entrepreneur is also the sole responsible.
N/A
Social security and labour law aspects
General social and health security
Social security and health insurance assessment base of an employee in Romania is derived from salary income.
Payrolls and Contribution
Employee
Employer
Income tax
10%
N/A
Health insurance contribution
10%
N/A
Social (Pension) insurance contribution
25%
N/A
Work insurance contribution
N/A
2.25%
Residents of the EU are covered by the provisions of EC Regulation 883/2004 regulating social security and health insurance rules in case of cross-border activities.
General comments on labour law
Main features of employment relationship
Applicable law
Contract type
Individual labour agreement for definite period, indefinite period, home-based work, telework, part-time or full-time work, temporary staffing, etc.
Law No. 53/2003 Labour Code
Contract must include
Parties, duration of the contract date of the contract conclusion, work conditions, the place where the work is performed, evaluation criteria of the employee, the occupation, the risks of the job, number of vacation days, number of days applicable for the notice, number of working hours per day and/or per week, probationary period and its conditions if any, the date of commencement of work, base salary, other elements constituting the salary income, separately recorded, periodicity of payment of the salary to which the employee is entitled and method of payment, etc.
(The contract must be concluded in writing)
Working time
Full time employees – 8 hours/day and/or 40 hours/week
Part time employees – the number of normal working hours, calculated weekly or as a monthly average, is less than the number of normal working hours of a comparable full-time employee.
The working time is determined by the daily norm thus weekly norm represents daily norm*no. of working days (5 days).
Working time is any period during which the employee performs work, is at the employer’s disposal and fulfils his/her tasks and duties, in accordance with the provisions of the individual employment contract, the applicable collective labour contract and/or the legislation in force.
Holiday entitlement per year
Minimum 20 working days per year.
Trial period
For indefinite labour agreements depending on the nature of the position:
Execution position: maximum trial period is 90 calendar days;
Management position: maximum trial period is 120 calendar days
For definite labour agreements:
Depending on the period:
< 3 months: maximum 5 working days;
3 – 6 months: maximum 15 working days.
Depending on the nature of position:
Execution position >6 months: maximum 30 working days;
Management position >6 months: maximum 45 working days.
Notice Period
Parties’ agreement: no notice period required.
Dismissal: Minimum 20 working days.
Resignation, depending on the nature of the position:
Maximum 20 working days for execution position;
Maximum 45 working days for management position.
Taxes on corporate income
Corporate income tax (CIT) – rates
The standard corporate income tax rate is 16%.
Taxpayers that are carrying on activities such as gambling and nightclubs are either subject to 5% rate of the revenue obtained from such activities or to 16% of the taxable profit, depending on which is higher.
Companies with a turnover higher than EUR 50,000,000 in the previous year and which in the concerning year determine a corporate income tax lower than the minimum tax on turnover are required to pay corporate income tax at the level of a minimum tax on turnover. The minimum tax on turnover is determined as 1% of total income to which certain tax adjustments are made
Companies operating in the oil and gas sectors are additionally required to pay a supplementary turnover tax of 0.5% of their total revenues.
Corporate income tax – general information
Residence
A company is considered as resident in Romania if it is set-up under Romanian law, has its legal seat or its place of effective management in Romania.
Taxable income
Resident companies are taxable on their worldwide income, unless a double tax treaty stipulates otherwise.
The taxable profit of a company is calculated as a difference between the revenues and expenses registered according to the applicable accounting regulations, adjusted by deducting non-taxable revenues and tax deductions and by adding non-deductible expenses. Also, elements similar to revenues and expenses are taken into account when calculating the taxable profit.
Non-resident companies that are carrying on activities in Romania through a permanent establishment are required to pay corporate income tax for the taxable profit attributable to the permanent establishment.
Tax period
The calendar year or the fiscal year for the companies that have chosen, according to the applicable accounting regulations, to apply a fiscal year different from the calendar year.
Tax returns and assessment
As a general rule, the corporate income tax is calculated quarterly. For the first three quarters the filing and the payment of the corporate income tax is performed quarterly, until 25th of the first month following the end of the quarters. The final computation and payment of the corporate income tax for the whole calendar year is to be performed until March 25th of the following year.
There are exemptions from the above general rule that apply to companies such as:
Companies that have chosen the fiscal year different from the calendar year have to declare and pay the annual corporate income tax until 25th of third month after the ending of the fiscal year changed.
Non-profit organizations, companies that obtain revenues mainly from agricultural activities, educational units, religious cults and other taxpayers specifically mentioned by law have to declare and pay the annual corporate income tax by February 25th of the following year.
Credit institutions and branches of foreign credit institutions in Romania are required to apply the system of quarterly advance payments.
During the period 2021–2026, the final calculation and payment of corporate income tax for the entire calendar year must be made by June 25 of the following year for which the tax is due, in accordance with the provisions of Government Emergency Ordinance no. 153/2020.
Advance payments
Taxpayers, except those who are specifically mentioned by law, may opt to declare and pay the annual corporate income tax by making quarterly advance payments. The anticipated quarterly advance payments are computed as ¼ of the previous annual corporate income tax updated by the consumer price index and are due by the 25th of the month following the end of the quarter. By exception, the quarterly advance payments related to fourth quarter are due by December 25th, respectively until the 25th of the last month of the changed fiscal year.
Deductions
As a general rule, are considered deductible expenses those expenses which are incurred for the purpose of carrying on the business activity, unless they are specifically mentioned by law as limited deductibility expenses or non-deductible expenses.
Carry forward of losses
Annual tax losses determined by way of the corporate income tax return, beginning with 2024/amended tax year beginning in 2024, as the case may be, shall be recovered from the taxable profits realized up to maximum 70%, in the following 5 consecutive years. Recovery of losses will be made in the order in which they are incurred, at each income tax payment date.
Research and Development (R&D)
Companies can benefit from an additional deduction of 50% of the eligible expenses for their Research and Development (R&D) activities. Furthermore, accelerated depreciation for devices and equipment used in the R&D activities may be applied.
The 50% additional deduction from the R&D expenses will not be recomputed in case the objectives of the project are not met.
In order to benefit from these incentives, the eligible R&D activities should be from the applicative research categories and/or technological development relevant to the company activity and the activities should be performed in Romania, as well as in the European Union or in other states – member states of the European Economic Area.
Incentives are granted separately for R&D activities of each project.
Tax exemptions for reinvested profit
The profit invested in new and specific technological equipment manufactured and/or purchased released for use is exempt from income tax. In order to benefit from this incentive, the technological equipment should be used by the company for the purpose of carrying on the business activity for more than half of its useful life, but for no longer than five years. The companies benefiting from this incentive cannot use the accelerated depreciation method for the respective technological equipment.
Withholding tax
Domestic dividend tax
As a general rule, dividends paid by a Romanian company to another Romanian company are subject to 10% tax. However, the dividends paid are non-taxable if the beneficiary of the dividend has held, at the time of the distribution, a minimum of 10% of the Romanian company for an uninterrupted period of at least one year.
WHT for non-resident companies
The applicable WHT rates in relation with non-resident companies are:
10% for the 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% in case of any other revenues obtained from Romania
Dividends paid
As a general rule, dividends paid to non-resident companies are subject to 10% withholding tax.
However, as Romania is an EU member state, the EU Parent-Subsidiary directive can be applied. Therefore, dividends paid by Romanian companies to resident companies in one of the EU member states are exempt from taxation if the beneficiary of the dividend has held, at the time of distribution, a minimum of 10% of the shares of the Romanian company for an uninterrupted period of at least one year.
Interest
As a general rule, the interest paid to non-resident companies is subject to 16% withholding tax.
However, as Romania is an EU member state, the EU Interest and Royalties Directive can be applied. Therefore, interest paid by Romanian companies to resident companies in one of the EU member states are exempt from taxation if the beneficiary of the interest has held, prior to the time of payment, at least 25% of the share capital of the Romanian company for an uninterrupted period of at least two years.
Royalties
As a general rule, royalties paid to non-resident companies are subject to 16% withholding tax.
However, as Romania is an EU member state, the EU Interest and Royalties Directive can be applied. Therefore, royalties paid by Romanian companies to resident companies in one of the EU member states are exempt from taxation if the beneficiary of the interest has held, prior to payment time, at least 25% of the Romanian company´s share capital for an uninterrupted period of at least two years.
Anti-avoidance rules
Thin capitalization rules have been repealed as of 2018. Therefore, as of January 1, 2018, the Tax Code introduces a new concept – exceeding borrowing costs – defined as the difference between interest expense and interest income as well as other equivalent expenses/income. The total exceeding borrowing costs resulting from transactions/operations carried out both with related and non-related parties may not exceed the deductible ceiling represented by the RON equivalent of the amount of EUR 1,000,000. However, exceeding borrowing costs resulting from transactions/operations which do not finance the acquisition/production of fixed assets under construction/assets established according to the law and which are carried out with related parties, are deductible, in a tax period, up to the deductible ceiling represented by the RON equivalent of EUR 500,000.
The exceeding borrowing costs exceeding the threshold of EUR 1,000,000 may benefit from an extra deduction, limited to 30% of the accounting profit adjusted negatively with non-taxable income and positively with income tax expenses, exceeding borrowing costs and deductible tax depreciation. If the resulting base is zero or negative, the exceeding borrowing costs is non-deductible in the current period, but can be recovered for an unlimited period of time and can be deducted in subsequent periods applying the same mechanism.
Controlled foreign company
A corporate taxpayer who controls a foreign company includes in its taxable base undistributed income derived from: interest, royalties, dividends, income from the transfer of shares, income from financial leasing, insurance income, banking activities, etc.
An entity is considered a controlled foreign company if the following conditions are met:
The taxpayer liable for corporate income tax owns, alone or together with its associated enterprises, directly or indirectly, more than 50% of the voting rights or capital of the controlled foreign entity or is entitled to receive more than 50% of its profits;
The corporate income tax actually paid by the entity is less than the difference between the corporate income tax that would have been paid if the rules of the Romanian Tax Code had been applied and the corporate income tax actually paid.
Transfer pricing
Transactions performed between two Romanian related persons, as well as between related Romanian persons and non-resident persons, are subject to transfer pricing rules.
A legal entity is related with another legal entity if at least one of the cases below is applicable:
The first legal entity holds, directly or indirectly, a minimum of 25% of the participation titles or voting rights at the other legal entity or if it effectively controls the legal entity.
The second legal entity holds, directly or indirectly, a minimum of 25% of the participation titles or voting rights at the first legal entity.
A third-party legal entity holds, directly or indirectly, a minimum of 25% of the participation titles or voting rights at both the first and the second legal entity.
Transactions between related parties should use the arm’s-length principle. In case the transfer prices are not set at arm’s length, the fiscal authorities have the right to adjust the amount of revenue and expense in order to reflect the market value.
International aspects-double tax treaties
In order to apply the provisions of the relevant Double Taxation Treaty (DTT), the non-resident recipient of the income should provide to the Romanian payer a tax residence certificate attesting its tax residency for the purpose of the DTT.
In case the tax rates mentioned in the domestic legislation differ from the rates mentioned in the applicable DTT, then the most favourable rate will apply.
Taxes on individual income
Personal income tax
At this moment, incomes obtained by individuals are taxed with 10%.
Legislation
Personal income tax regarding incomes from salaries is governed by the Fiscal Code (Law 227/2015).
Exemption from the taxation
Romanian State established as income tax free several categories of employees:
Employees with severe or pronounced disabilities– the tax exemption is granted only under strict conditions verified by Romanian medical system.
Employees who work in Research and Development (R&D) or Technological Development field– the tax exemption is granted if certain conditions are met as per law provisions.
Tax period
The tax period equals the calendar year.
Deductions
Personal deduction
The personal deduction comprises the basic personal deduction and the additional personal deduction and is granted within the limit of the monthly taxable income earned.
The basic personal deduction is granted to individuals who have a gross monthly income of up to 2000 lei above the level of the minimum gross basic salary in force in the month of income. The Tax Code also introduces changes to the methodology for calculating the personal deduction.
The additional personal deduction is granted as follows:
15% of the basic gross national minimum wage guaranteed in payment for individuals up to 26 years of age who earn up to 2,000 lei above the basic gross minimum wage;
100 lei per month for each child up to the age of 18, if the child is enrolled in an educational establishment.
Other deductible amounts
For example, voluntary health insurance premiums and medical services provided through a subscription, as well as voluntary pension contributions covered by employers for their own employees, are tax-deductible for salary tax purposes up to a limit of EUR 400 per year for each category.
Allowances
Per Diem
During the period of delegation, employees are entitled to payment of travel and accommodation expenses and a delegation allowance.
Delegation is the temporary performance by an employee, at the employer’s request, of work or tasks corresponding to the employee’s duties outside the workplace.
The delegation allowance or daily subsistence allowance, as it is also known in practice, is the daily amount granted, for example, to cover the cost of food, the usual incidental expenses and the cost of transport within the locality where the employee works.
Limits for daily allowance
The maximum deductible limit applicable for daily allowances granted by the Company, inside Romania or abroad represents 2.5* the daily subsistence allowance of the legal level established for the delegation/posting allowance, by Government decision, for staff of public authorities and institutions, up the maximum value of 3 basic salaries.
The values that exceed the maximum limit mentioned above are considered benefits and must be included in the category of income salaries and salary-related income.
Daily allowance in EU countries (with some exceptions)
Interval
Minimum
Maximum tax deductible up to
01.12.2012 – present
EUR 35
EUR 87.50
Daily allowance in Romania
Interval
Minimum
Maximum tax deductible up to
01.04.2023 – present
RON 23
RON 57.5
International aspects ̶ residence
Individuals who meet at least one of the following conditions are considered to be resident individuals in Romania:
Have their domicile in Romania
The centre of vital interests is in Romania
They are present in Romania for one or more periods exceeding 183 days, during any 12 consecutive months ending in the calendar year concerned.
All other individuals are considered to be non-residents. EU residents are subject to the rules of EC Regulation 883/2004 on social and health security for cross-border activities.
Value-added tax
Value-added tax ̶ rates
The standard VAT rate in Romania is 19%.
A reduced rate of 9% applies to water, food & beverage industry, hotel accommodation, restaurant and catering services, provision of social housing under certain conditions, entrance fees to sports events.
Extra-reduced rate of 5% applies to schoolbooks, newspapers, magazines, including those recorded on electromagnetic or other media, entrance fees to castles, museums, memorial houses, zoos, botanical gardens, and similar institutions.
Value-added tax – general information
Legislation
VAT rules are based on the principles of the Council Directive 2006/112/EC on the Common System of Value Added Tax. The Directive is implemented in the Romanian law by Law No 227/2015 and related Methodological Norms.
Taxable person
Legal entities and individuals that carry on independently an economic activity.
Taxable event:
The supply of goods and services in relation with an economic activity within the territory of Romania
The intra-Community acquisition of goods/services having the place of supply within the territory of Romania
The import of goods into Romania
Taxable amount
Total consideration charged for the supply, excluding VAT but including any excise duties or other taxes and fees. In some cases, between related parties, the taxable amount consists of the market value.
Tax period
The standard fiscal period is the calendar month.
For taxable persons whose previous year-end turnover is lower than EUR 100,000 and did not perform intra-Community acquisitions of goods, the fiscal period is the calendar quarter.
Tax assessment
Periodical VAT returns (monthly or quarterly, by the 25th day of the following month) and the Local Sales and Purchases List (monthly, by the 25th day of the following month). The payable VAT liability consists of the output VAT, due on supply of goods and services carried out, less the input VAT of the same period (monthly or quarterly, by the 25th day of the following month). The refundable VAT (when input VAT is higher than output VAT) can be requested for refund or carried forward until the statute of limitation period expires (5 years).
In addition, taxable persons carrying out intra-Community operations with goods or services with the place of supply according to the basic rule for “business to business” services have to file an EC Sales List (that shows the VAT identification numbers of his business partners and the total value of all the supplies of goods and services performed by the entrepreneur) on a monthly basis depending on the situation.
Submission through electronic means is available.
All above tax statements are to be prepared based on the information presented in the VAT Sales and Purchase Ledgers.
Reverse charge
Reverse charge applies for the intra-Community acquisitions, where both parties are registered for VAT purposes. Local reverse charge is applicable in some cases between two Romanian VAT payers, for example:
Corn and industrial crops, including oilseeds and sugar beets
Certain waste and recyclable materials
Wood and alike materials
Gas emission and “green” certificates
Electric energy to traders
Land and buildings
Investment gold, under certain conditions
Mobile phones
Integrated circuits such as microprocessors and central processing units
Portable automatic data processing devices (such as laptops, tablets etc.)
Video game consoles
VAT cash accounting system
The system is optional for taxpayers with a previous year turnover lower than RON 4,500,000and for the newly set-up companies. The right to deduct the input VAT for the acquisitions of goods/services from companies applying the system is deferred until the payment is performed.
RO – invoice
Starting 1st of January 2024, B2B e-invoicing has become mandatory.
VAT registration
Normal VAT registration
The mandatory VAT registration for taxable persons having the place of business activity in Romania should be performed when the annual turnover of EUR 88,500 (RON 300,000) is exceeded. Voluntary VAT registration before the threshold is exceeded is also possible.
Non-resident taxable persons established in Romania through fixed establishments and non-residents having no actual presence in Romania can register without observing the above threshold. However, a VAT number must be in place before the commencement of the economic activity.
A foreign taxable person that makes long-distance sales (mail order business) to any non-taxable person or that is not registered for VAT in Romania must register for VAT in Romania if the total annual value of the goods/supplies reaches EUR 35,000 (RON 118,000).
Identified person
Taxable person not registered for normal VAT purposes in Romania and not required to register are liable to register as an identified person (special VAT registration) in the following situations:
Purchase of services from persons established outside Romania having the place of supply in Romania
Supply of services with place of supply in another EU Member State
Intra-Community acquisitions of goods from another EU Member State cumulatively exceeding the annual threshold of EUR 10,000.
VAT group registration
Companies that are legally independent but are closely related financially, economically and from an organisational point of view may form a tax group, if administered by the same tax office and having the same tax period. Transactions between the members of the group will still fall within the scope of VAT.
Other taxes
Micro-enterprise tax
To opt for the microenterprise income tax regime, the following conditions must be met as of December 31 of the previous year:
The company’s total revenues in the previous year must not exceed the RON equivalent of EUR 250,000 (this includes revenues generated by other related entities, as defined by law). To apply the regime in 2026, the total revenues for 2025 must not exceed EUR 100,000.
Its share capital is held by individuals, other than the state or administrative-territorial units.
It is not undergoing dissolution followed by liquidation, and is not registered as such in the trade register or in court, as per legal procedures.
It has derived revenues other than from consultancy and/or management (with the exception of tax consultancy) in a proportion exceeding 80% of total revenues; for applying the regime in 2026, this condition will no longer be mandatory.
It has at least one employee.
Its shareholders or associates, who directly or indirectly hold more than 25% of the value/number of participation titles or voting rights, have designated it as the sole legal entity to apply the microenterprise tax regime (a shareholder/associate must ensure they do not directly or indirectly hold more than one company applying the micro regime).
It has submitted its annual financial statements on time, if required to do so by law.
Tax period
The tax period equals the calendar year.
Tax returns and assessment
Payment of the tax and filing of the returns is made quarterly, by the 25th day of the month following the end of the quarter for which the tax is calculated.
Property taxes
Building tax
For buildings owned by companies, the following tax rates are applicable:
Between 0.08% and 0.2% of the buildings tax value for residential buildings
Between 0.2% and 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 3 previous years
Building tax is paid annually in two equal instalments, until March 31st and September 30th.
The building tax is due for the entire tax year by the person who owns the building as of December 31st of the prior tax year.
Tax on plots of land
The owners of land are subject to tax on plots of lands. The Local Council establishes a fixed amount per square metre, depending on the rank of the area where the land is located and the category of land use.
Tax on plots of land is paid annually in two equal instalments, until March 31st and September 30th.
The tax is due for the entire tax year by the person who owns the land as of December 31st of the prior tax year.
Tax on transportation means
The tax on transportation means in Romania is paid by any person that owns a mean of transportation.
The tax rate varies from RON 8 to RON 290 depending on the cylindrical capacity of each vehicle, for each 200 cm3 or a fraction thereof.
The tax on transportation means is paid annually in two equal instalments, until March 31st and September 30th.
The tax on transportation means is due for the entire tax year by the person who owns the mean of transportation as of December 31st of the prior tax year.
Other business-related taxes
Special Tax on High-Value Assets
The following categories of taxpayers are liable to pay the special tax on high-value assets:
Individuals who, as of December 31 of the previous fiscal year, own (solely or jointly) residential buildings in Romania with a taxable value exceeding RON 2,500,000. These individuals will owe a special tax of 0.3%, applied to the difference between the taxable value of the building, as communicated by the local tax authority through the tax assessment decision, and the threshold of RON 2,500,000.
Individuals or legal entities that own cars registered in Romania with a purchase value exceeding RON 375,000. The special tax is 0.3% of the difference between the purchase value and the RON 375,000 threshold and is due for a period of 5 years from the vehicle registration date, or for the remaining period up to 5 years if the vehicle is already registered.Between 0.08% and 0.2% of the buildings tax value for residential buildings
Tax payment deadlines and submission of tax returns:
By April 30 (inclusive) of the current fiscal year, to the central tax authority in the jurisdiction where the taxpayer is domiciled – applicable to owners of residential buildings.
By December 31 (inclusive) of the current fiscal year, to the central tax authority in the jurisdiction where the taxpayer is domiciled – applicable to owners of high-value vehicles.
Tax on constructions
Starting January 1, 2025, Romanian and foreign companies owe a construction tax in Romania, calculated by applying a 1% rate to the value of constructions recorded in the company’s assets as of December 31 of the previous year. From this value, the taxable value of buildings already subject to the building tax (as provided by Title IX of the Fiscal Code) will be deducted.
Excise duties
The following products are subject to excise duties: alcohol and alcoholic beverages, manufactured tobacco products, energy products and electricity.
Customs duties
Goods imported from non-EU countries are subject to import customs clearance.
Investment incentives
Individuals working in the Research & Development field may benefit from an exemption from the standard 10% income tax, under certain conditions expressly mentioned in the Romanian domestic legislation.
Companies doing business in Romania could benefit from the following incentives:
Tax facilities regarding R&D expenses: Companies may benefit of an extra 50% tax depreciation for the eligible R&D expenses and may also apply the accelerated depreciation for these expenses.
Tax exemption on reinvested profit: The facility refers to the exemption of corporate tax of the profit re-invested in certain types of assets.
How Accace can support you with taxes in Romania
Beyond our free tax guideline for Romania, we’re ready to support you with hands-on expertise tailored to your business needs. Accace offers comprehensive tax advisory and tax compliance services in Romania to help you navigate local regulations, optimize your tax strategy, and stay fully compliant. Whether you’re entering the market or already operating in Romania, our local experts are here to make sure your tax matters are in good hands. Get in touch with us today!
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About Accace Circle
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