Taxes in Romania... A Real Tax Heaven within UE!

Romania have always been a LOW TAX country, but we have registered a significant tax change starting from January 1 2018, when the new Tax Legislation went into effect...
From that moment, Romania has become a REAL TAX HEAVEN , totally legal and within European union,
making possible for "Micro Enterprise" companies (Companies NOT exceeding 1 Million Euro/Year gross income... ) TO PAY
NEAR TO ZERO CORPORATE TAX RATES!

The romanian taxation system is very simple, effective and cheap!
It is based on just TWO different Tax Rates, plust VAT, plus Dividend Tax:
Micro Company Tax Rate (turnover not exceeding 1 million EURO/Year)
AND
Macro Company Tax Rate (turnover exceeding 1 million EURO/Year)
AND
Dividend Tax = 5% in both scenarios

= Details Below =


Regime fiscale competitivo

MICRO COMPANY TAX RATE

This Tax Regime include all companies which turnover do not exceed 1 mil EURO/Year in gross sales. Do not matter which is the Business sector... The parameter to take into consideration is the gross sales turnover. These companies are taxed as follow:

  • Flat Tax 1% on gross revenues, for companies with at least 1 employee
  • Flat Tax 3% 1% on gross revenues, for companies without employees

MICRO COMPANY TAX RATE

This second section include all companies which turnover exceeding 1 Million EURO/Year in NET sales (difference between the gross income and the business expenses incurred...).
So, these Companies are taxed on profit, and taxations goes as follow

  • Flat Tax 16% on net profits
  • Wide range of deductible expenses




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Romania Vat Rates

Accordinge with the EU VAT Regulation, foreign companies are requested by law to register for VAT in certain circumstances (not all companies are required to register for VAT, but only those which trigger the Romanian list of VAT obligation), in order to comply EU rules and VAT to be charged by Government.

  • Standard VAT Rate = 19%
  • Reduced VAT Rate = 9% (medicines, hotel, museums...)