The Corporate Tax in Romania
is mandatory for all legal persons, with some exceptions provided by the Law and you should ask for a specialized accountant advice to obtain a customized calculation for the Corporate Tax. In this sense, our Accountants in Romania
will provide all the legislative information
for paying your Corporate Tax in optimum time and in the conditions provided by certain Romanian rules and regulations, in accordance to your company’s activity. You should also be aware that the compliance
with the Corporate Tax in Romania is essential for your business and when the documentation and payments are not deposited in time, your company is liable for fees and other compulsory measures taken by the State.
In Romania, the taxable income is calculated as the difference between the income from any source and the expenses incurred in order to achieve revenue (tax deductible). This calculation is performed for each fiscal year. From the amount resulting is subtracted the taxable income and the deductible expenses are added.
In Romania the corporate tax represents 16% from the taxable profit obtained by a legal person in a fiscal year.
The taxable income may differ from gross profit accounting, because not all expenses highlighted by a company in profit or loss are deductible, some of them being just partially deductible.
Under the current law, in Romania are required to pay Corporate Tax the Romanian legal persons, foreign legal entities that carry out activities through a permanent establishment in Romania, foreign legal entities and non-resident individuals who operate in Romania in an association without legal personality and foreign legal persons who derive income from or in connection with real estate located in Romania or income from the sale / disposal of shares held in a Romanian legal entity.
When individuals associated with Romanian legal person resident, for income obtained both in Romania and abroad from associations without legal personality, the individual tax due is calculated, withheld and paid by the Romanian legal entity.
For taxpayers, except certain categories provided by the Law, where the Corporate Tax is lower than the minimum tax for the portion corresponding to the total income, the Corporate Tax is paid at the levels mentioned bellow:
- For incomes that do not exceed 52,000 RON the minimum corporate tax is 2,200 RON;
- For incomes between 52,001 RON and 215,000 RON the minimum corporate tax is 4,300 RON
- For incomes between 215,001 RON and 430,000 RON the minimum corporate tax is 6,500 RON
- For incomes between 430,001 RON and 4,300,000 RON the minimum corporate tax is 8,600 RON
- For incomes between 430,000,001 RON and 21,500,000 RON the minimum corporate tax is 11,000 RON
- For incomes between 21,500,001 RON and 129,000,000 RON the minimum corporate tax is 22,000 RON
- For incomes that exceed 129,000,001 the minimum corporate tax is 43,000 RON
In Romania, there are certain exemptions from the corporate tax payment
, for several categories of taxpayers, such as: State Treasury, public institutions, Romanian legal persons who pay income tax on microenterprises, Roman foundations formed as a result of a legacy, accredited private educational institutions, homeowners associations constituted as legal entities and residents associations recognized as owners associations, Deposit Guarantee Fund in the Banking System, Investor Compensation Fund, the National Bank of Romania
, Private pension guarantee fund.
If you need more information about the taxes paid by a company in Romania or you are interested in financial services, such as audit services in Romania
, you may call our accountants.