In Romania, taxes are based on the regulations from the Tax Code (Codul fiscal). As all Romanian accountants know, companies must pay to the state budget the tax profit, which is obtained by subtracting all deductible expenses from the taxable income.
Generally, the tax rate on taxable profits is 16%, according to the Romanian Tax Code. Of course, there are a few exceptions, such as zero tax for some state-owned companies or a maximum 3% tax rate for any revenue of micro-businesses.
Romanian Tax Code - indirect taxes
Any Romanian accountant knows that some inland special taxes (excise duties) are applicable on the consumers in the case of the domestically-produced or imported goods such as: wine, beer or any fermented beverages, processed tobacco, ethyl alcohol, energy products and electricity and intermediate products.
Romanian Tax Code - VAT
Another indirect tax is the value added tax (or VAT), which is paid to the state budget. Generally the standard VAT rate in Romania is 24%. As an exception, there is a reduced rate of VAT (9%), applied to some services or goods, such as bread. In cases well known by Romanian accountants, companies which are providing services for individuals may choose not to pay VAT.
If foreign entrepreneurs are trading goods or providing services in Romania that are subject to Romanian VAT, they must register for VAT purposes. There are some exceptions - only if the chargeable person for paying the tax is the same with the one which receives the goods or the services.
According to Romanian Tax Code, the registering for VAT purposes is compulsory for all the foreign traders who are buying goods from the EU countries and bring them in Romania.
In Romania, foreign entrepreneurs established in the countries of EU can directly register for VAT purposes at the authorities which are managing non-resident taxpayers or at the institution responsible for managing the fiscal representative.
You can find other detailed information and the contact dates of the different departments on the National Agency for Tax Administration website (www.anaf.ro).
Romanian Tax Code - Payment of taxes
The payment of taxes can be made - by bank card, in cash, by payment order or by postal payment order – at the banks, treasury offices and other authorised institutions.
In the Tax and Social Contributions Register and in the Non-Fiscal Duties and Fees Register websites, you can find more information about the deadlines and types of paying taxes and duties.
Online tax declarations
National Agency for Fiscal Administration (ANAF) is the institution that collects the taxes, contributions and other amounts for the state budget in Romania. By accessing e-guvernare.ro portal, any trader can file some tax declarations online, but he must firstly obtain a digital certificate for electronic signature.
For more information about corporate tax, Romanian Tax Code, VAT registration or accounting, you can contact our accounting firm in Romania.
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