Browse corporate tax rates and personal tax rates in Romania.
Corporate tax rate in Romania
16% tax rate is the standard corporate income tax rate in Romania. This applies to all the legitimate registered resident businesses in Romania. A resident business refers to a business that is set up under Romanian law, and its main management operates in Romania. A resident Romanian company is taxable on its worldwide income. Find out more on company types in Romania.
| Income | tax rate |
| Revenue tax | 1% up to 30k EUR in revenue 3% up to 250k EUR in revenue |
| CIT | 16% |
| Dividends | 10% |
| Donation | nil |
| Wealth | nil |
| Inheritance | nil |
* Revenue tax scheme in Romania is available for small companies with a turnover up to 250k EUR a year. Company Romania legal solution lets increase the limit and in some cases bring the dividend tax down to 0%.
The CIT due for nightclubs and gambling operations is either 5% of the revenue obtained from such activities or 16% of the taxable profit, whichever is higher.
Micro-company tax rates
There are tax incentives for micro-companies if their maximum revenue in 2025 the previous year was EUR 0,5 million (Company Romania solution lets increase limit up to 1,5M euro yearly) The following tax rate applies to their income:
- 1% up to 30k EUR in yearly revenue;
- 3% up to 250k EUR in yearly revenue.
The prerequisite for a microenterprise tax regime is having at least one employee hired for the entire fiscal year.
You can check how to calculate an income tax amount for a small company here.
New companies can also apply for 16% CIT rate.
Existing microenterprises can switch to CIT regime if they fulfill the following conditions:
- have a subscribed share capital of at least RON 45,000;
- have at least two employees,
- or crossed the limit of 100 000 euro revenue (in this case the company is automatically switched without the option to switch back to a revenue tax).
As a general rule, the corporate income tax is calculated quarterly. The final computation and payment of the corporate income tax for the whole calendar year are to be performed until March 25 of the following year.
Personal income tax rate in Romania
An individual is subject to 10% personal income tax (PIT) according to the Romanian Fiscal Code (Law 227/2015). The PIT is imposed on different sources of income like labor, pensions, and interest. The Romanian government provides tax inducement on different levels.
Romanian government in the last days od 2024 Eliminated many tax incentives starting from 2015. Tax exemptions for individuals in IT, construction, agriculture, and food sectors will no longer apply starting January 2025. Regular taxation will be implemented for salary income from January 2025 onward.
The tax period is equal to the calendar year from 1 January to 31 December. The annual return shall be submitted by 25 May each year.
Social Security contribution in Romania
Social Security is deductible from the salary of an individual. The social security rate is charged to both companies and employees. In return, the Romanian government provides incentives through social programs including health insurance, and welfare.
| Tax name | Tax rate |
| Social security rate | 37.25% |
| Social security rate for companies (employer) | 2.25% |
| Social security rate for employees | 35%(10% health insurance, 25%social insurance contribution) |
Value-added tax rate
Since January 1, 2017, a standard VAT rate in Romania has been 19%. VAT is imposed on the supplies of goods and services (including imports), neither qualifying for an exception nor qualifying for a reduced vat rate:
- 9% is the reduced rate levied on water, beverages, food industry, medical treatments, accommodation, etc.
- 5% is an extra reduced rate levied on school manuals, books, newspapers, hotel accommodation, restaurants, catering services, tickets to castles, museums, sports events, cinemas, etc.
A taxable person for VAT purposes is a legal entity and individual that independently carries out an economic activity.
For VAT return compliance, the standard tax period is the calendar month.
It’s important to note that starting January 1, 2025, Romania will extend the obligation to submit the Standard Audit File for Tax (SAF-T), specifically the D406 Return, to non-resident businesses registered for VAT in Romania. The first submission will be due by February 28, 2025, covering transactions from January 2025.
For businesses involved in intra-EU trade, Romania’s Intrastat reporting thresholds for 2025 remain at RON 1,000,000 for both dispatches and arrivals. Companies exceeding these thresholds are required to submit Intrastat declarations.
Property tax
Property tax in Romania consists of a building and land tax.
Building tax
According to the Romanian Fiscal Code, tax on the building is based on the utilization of the building it is classified as follows:
- Residential buildings
- Non-residential buildings
- Mixed-purpose buildings
Land tax
The land tax is a fixed amount per sqm, depending on the land surface, the type of area where it is located and is a maximum of 0.46 € per sqm.
Both, building tax and land tax are paid in two equal installments annually, March 31 and September 30 respectively.
Tax on vehicles
Means of transportation are taxed in Romania regardless of their ownership nature.
A car tax rate varies depending on the cylindrical capacity of each vehicle, for every 200 cm3 or a fraction thereof.
Find out more on car registration in Romania.
Summary
Tax rates in Romania still might be attractive for some entrepreneurs. However, we believe that most companies looking to expand sales to Romania, a market of over 20 million people, will be the ones establishing new businesses in the country. Find out more about company registration in Romania.
