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Taxation for Sole Traders in Romania

Updated on Monday 07th March 2022

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Taxation for sole traders in Romania.jpegIn Romania, PFA-type businesses and individual enterprises are allowed, for which a certain taxation system is applied. If you are planning to set up such a business, we recommend the services of our Romanian accountants. Our specialists know what the self-employed tax in Romania entails and can help you with registration with state institutions.

Which tax system applies to sole traders in Romania

The charging system for sole traders is different from the one imposed on Romanian companies. Here's what it means:
  • PFA (Authorized Individual) taxation is done in a real system or at the income rate.
  • The 10% net income tax is applied. This income results from the difference between gross income and deductible expenses.
  • Also, 10% is applied in case of income tax, at a predetermined amount.
  • In order to be able to apply the tax mentioned above, the income record will be kept.
  • The income norm is applied according to the CAEN code.
We remind you that our accountants in Romania can offer you specialized help if you want to set up a sole trader. We can take care of the formalities related to the registration for the payment of taxes.

Other contributions for PFA in Romania

Pension and health contributions are other things to consider for a PFA. The taxes are calculated according to the total annual income if it exceeds the minimum annual salary for one year. Here are the contributions to be paid:
  • Pension fund - 25% of the minimum threshold of RON 30,600 or a higher amount, if higher incomes are registered.
  • Health - 10% of the minimum threshold of RON 30,600. The same tax applies to those with incomes below this threshold, with the mention that it will be calculated for half of the minimum threshold.
You can find out more about the self-employed tax in Romania if you talk to our accountants in Romania.

Payment of fees for a sole trader in Romania

The Single Declaration offered by ANAF is the necessary document for the calculation of the taxes to be paid. A sole trader must complete this statement for the previous year and must submit it by May 25 of the current year.
Our accountants in Romania recommend paying taxes annually, to avoid penalties or payments for several years. But in order to have a clear record of the taxes you have to pay, we advise you to collaborate with our accounting experts. You can discuss more about self-employed tax in romania with us.

What kind of income is taxable for a sole trader

Individuals who register income from intellectual property rights, self-employment, or association with legal entities must pay health and pension contributions. It is also valid for those with incomes obtained from investments or the transfer of the use of goods. Registration in the social health insurance system can be done with the help of our Romanian accountants. We have experience in self-employed tax in Romania matters.

Why work with our accountants in Romania

We are a team with experience in the field of taxation and we can offer advice for self-employed tax for individuals in Romania. Our clients can rely on professionalism, efficiency, and transparency when working with us.
As the legislation is constantly changing, it is important to have an accountant with you to keep you up to date with legislative developments. This way you have the guarantee that sole trader in Romania aligns with the tax rules in this country.
We invite you to contact our accounting firm in Romania and find out all the details about the self-employed tax for persons in Romania.