Below you will find an overview of the taxes and tax rates that apply to your Romanian SRL and to you as an entrepreneur.
We will be happy to advise you on this.
Corporate income tax or profit tax for an SRL in Romania
| Tax rate 1 % | Tax rate 3 % | Tax rate 16% | |
| Type of tax: | Corporate income tax | Corporate income tax | Profit tax |
| taxed: | Turnover | Turnover | Profit |
| Example: | |||
| Turnover per year: | 60.000 EUR | 500.000 EUR | 500.000 EUR |
| Profit per year: | 40.000 EUR | 400.000 EUR | 100.000 EUR |
| Tax burden: | 60.000 EUR at 1% tax = 600 EUR | 500.000 EUR at 3% tax = 5000 EUR | 100.000 EUR at 16% tax = 16.000 EUR |
Requirements for the choice of tax model
| Tax rate 1 % | Tax rate 3 % | Tax rate 16% | |
| Maximum annual turnover: | 60.000 EUR | 60.001 - 500.000 EUR | über 500.000 EUR |
| Employment: | One employee at 100% or several employees cumulatively at 100% | One employee at 100% or several employees cumulatively at 100% | not required |
| Branch restriction: | no or less than 20% activity in the area of consulting (CAEN 7022) | no or less than 20% activity in the area of consulting (CAEN 7022) | none |
| Shareholdings: | Shareholder may have a stake of more than 25% in a maximum of 3 microenterprises | Shareholder may have a stake of more than 25% in a maximum of 3 microenterprises | none |
| Bookkeeping: | must be kept by a sworn accountant | must be kept by a sworn accountant | must be kept by a sworn accountant |
VAT liability for companies in Romania
From a turnover of LEI 300,000 or EUR 60,000, there is an obligation to register as a VAT payer.
If your turnover is lower, you are free to do so.
Taxes on the distribution of dividends to shareholders
Before dividends can be distributed, a balance sheet must be drawn up by your tax advisor and a profit determined.
The dividend tax (profit withdrawn) is 8%.
In addition to the dividend tax, a contribution must be paid to the social health insurance fund.
Entrepreneur in Romania - Overview
- Setting up a company in Romania
- Support with the first steps of your company
- Creation of business models and business plans
- Info: Taxes for entrepreneurs in Romania
- Info: Rent office space in Romania
- Info: Romanian tax consultant
- Info: Employee obligation for 1% and 3% SRL
- Info: Open a Romanian bank account
- Info: NACE codes - Economic activities in the EU
- Info: CASS - Contribution to health insurance
neutral, professional advice