Question 1

What is the corporate tax rate in Romania?

Accepted Answer

Romania has a flat corporate income tax rate on taxable profits. Small companies meeting certain revenue thresholds may qualify for the micro-enterprise regime with a lower rate on revenues instead. The micro-enterprise regime has conditions including shareholder restrictions and excluded activities (banking, insurance, consulting above certain thresholds, etc.).

Question 2

When must a company register for VAT in Romania?

Accepted Answer

VAT registration is mandatory when taxable turnover exceeds the statutory threshold in a calendar year. Companies can also voluntarily register before reaching this threshold. Foreign companies making taxable supplies in Romania may need to register regardless of threshold. EU companies may use the One-Stop-Shop (OSS) for B2C digital services instead of local registration.

Question 3

What are the VAT rates in Romania?

Accepted Answer

From August 2025, Romania applies: standard rate of 21% (previously 19%) for most goods and services, unified reduced rate of 11% (previously 5%/9%) for food, hospitality, medical equipment, cultural events, and tourism. Exports and intra-community supplies are zero-rated with input VAT recovery.

Question 4

What transfer pricing documentation is required?

Accepted Answer

Large taxpayers meeting certain revenue and related party transaction thresholds must maintain a complete transfer pricing file. This includes master file, local file, benchmarking studies, and intercompany agreements. Smaller companies need simplified documentation. Files must be available promptly upon ANAF request.

Question 5

How are dividends taxed in Romania?

Accepted Answer

Dividends paid by Romanian companies are subject to withholding tax. This may be reduced under tax treaties for substantial holdings. The EU Parent-Subsidiary Directive provides exemption for qualifying EU parent companies meeting holding and duration requirements. Dividends received by Romanian companies from EU subsidiaries may also be exempt.

Question 6

What are the main tax deadlines in Romania?

Accepted Answer

Key deadlines include: VAT returns by the 25th of the following period, corporate tax advances quarterly, annual corporate tax return by March, annual financial statements by June. Late filing triggers penalties and interest. Electronic filing is mandatory for most taxes.

Question 7

What are the penalties for tax non-compliance?

Accepted Answer

Romania imposes significant penalties for non-compliance: late payment interest calculated daily, late filing fines per declaration, and underreporting penalties based on the additional tax depending on circumstances. Repeated violations can result in criminal prosecution for tax evasion. Voluntary correction before audit may reduce penalties.

Question 8

How does Romania tax foreign companies?

Accepted Answer

Foreign companies are taxed in Romania if they have: a permanent establishment (PE), real estate, or income from Romanian sources. PE includes fixed places of business, construction sites exceeding certain durations, or dependent agents. Non-PE income (dividends, interest, royalties, services) may be subject to withholding tax, reduced by tax treaties. Many treaties follow the OECD model.

Question 9

What is the micro-enterprise tax regime?

Accepted Answer

The micro-enterprise regime offers a low tax rate on total revenues (not profits) for companies meeting specific criteria: annual revenues below the threshold, sufficient revenue from non-consulting activities, no financial/insurance activities, and shareholder limitations on multiple micro-enterprises. It provides simplified taxation but no loss deduction. Companies can opt for corporate tax instead.

Question 10

How are international transactions taxed?

Accepted Answer

Cross-border transactions involve multiple considerations: transfer pricing for intercompany dealings, withholding taxes on outbound payments (dividends, interest, royalties - treaty relief available), VAT on imports and exports, and permanent establishment risks. Romania has numerous tax treaties. EU directives provide additional relief for qualifying transactions. Advance rulings are available for complex situations.

Deadline	Obligation	Authority
25th monthly	VAT return (monthly filers)	ANAF
25th quarterly	VAT return (quarterly filers)	ANAF
25th quarterly	Corporate tax advance payment	ANAF
25th March	Annual corporate tax return (prior year)	ANAF
25th May	Transfer pricing file update	ANAF
30th June	Annual financial statements	Trade Registry

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