The corporate tax rate on profit is 16%.

Romania: withholding tax on dividends

In Romania the withholding tax on dividends distributed to shareholders or partners is 16%. Thanks to Romania tax treaties preventing double taxation signed by Romania and the United States and many other countries, the tax withheld may be reduced and creditable against the amount of tax due by the shareholder or partner in their home country. Dividends distributed to those living in countries without a tax treaty with Romania are subject to a withholding tax of 50%.

Romanian VAT

The current Romanian VAT rate is 24%.

A reduced Romanian VAT rate of 9% is applicable to certain hotel services.

Income tax on natural persons

Natural persons are subject to an income tax of 16%.

Micro-companies

Companies who have :

• An annual turnover of less than 65,000 EUR ;  
• Less than 20% of revenue their from the consulting are not taxable at the normal corporate tax rate but rather at 3% of their earnings.