Question 1

What is the most tax-efficient company structure in Romania for foreign investors?

Accepted Answer

For most foreign investors with revenue under €100,000, the micro-enterprise regime (1% tax with employees) is the most efficient. Above this threshold, standard corporate tax at 16% applies. We analyze your specific situation to recommend the optimal structure.

Question 2

Does Romania have double taxation treaties?

Accepted Answer

Yes. Romania has signed double taxation treaties with 90+ countries, including all EU members, the US, UK, China, Japan, and most major economies. These treaties help prevent double taxation on income, dividends, interest, and royalties.

Question 3

When do I need to register for VAT in Romania?

Accepted Answer

VAT registration is mandatory when your turnover exceeds 300,000 RON (~€60,000) in a 12-month period. However, voluntary registration from day one is recommended for B2B businesses to recover input VAT.

Question 4

What are the filing deadlines for Romanian taxes?

Accepted Answer

Corporate tax: quarterly (25th of the month following the quarter). VAT: monthly or quarterly depending on turnover. Annual financial statements: by May 31st. We handle all deadline management.

Question 5

Can I optimize withholding tax on dividends from Romania?

Accepted Answer

The standard dividend withholding tax is 16% for dividends distributed from 2026. Through double taxation treaties, this rate can often be reduced (e.g., to 5% under the EU Parent-Subsidiary Directive for qualifying parent companies with 10%+ shareholding).

Question 6

What happens during a Romanian tax audit by ANAF?

Accepted Answer

ANAF typically audits companies every 3-5 years. Audits last 3-6 months. We provide full representation: pre-audit preparation, attendance at sessions, response to queries, and appeals if needed.

Question 7

What transfer pricing rules apply in Romania?

Accepted Answer

Romanian companies must document related-party transactions per OECD Transfer Pricing Guidelines. Large taxpayers must prepare annual documentation. We handle Master Files, Local Files, and Country-by-Country reports.

Question 8

Is the Romanian IT tax exemption available to foreign-owned companies?

Accepted Answer

Yes. The IT income tax exemption applies regardless of company ownership. Qualifying IT employees with relevant degrees can be exempt from the 10% personal income tax. The company must have an IT-related main CAEN code.

Question 9

How do I repatriate profits from Romania tax-efficiently?

Accepted Answer

Options include dividends (16% WHT, reducible via treaties), management fees, royalties, and interest payments. Each has different tax implications. We design optimal profit repatriation structures for each client.

Question 10

What are the social contribution obligations for employers in Romania?

Accepted Answer

Employer contributions: 2.25% work insurance. Employee contributions: 25% pension + 10% health insurance. Total labor cost adds ~37.25% on top of gross salary. We help structure compensation packages to optimize costs.

Tax Advisory Romania — Optimize Your Tax Position

Romanian Tax Rates at a Glance

Corporate Income Tax

Micro-Enterprise Tax

VAT (Standard)

Dividend Tax

Personal Income Tax

Social Contributions

Tax Services for International Companies

Corporate Tax Planning

VAT Compliance

Transfer Pricing

Double Taxation Treaties

Tax Audit Representation

Tax Due Diligence

Tax FAQ for Foreign Investors

Optimize Your Romanian Tax Strategy

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