Tax overview

Corporate tax :

The corporate tax rate is 25% of the corporate profit.

The tax rate for the companies with an annual turnover inferior to 100.000 EUR is fixed at 1,5% of the turnover.

The dividends paid up to the shareholders are subject to a 10% tax rate settled through a withholding tax system. According to double taxation avoidance treaties concluded between Romania and different European countries, this withholding tax can be used as a tax credit to be withhold on the tax amount due by the shareholder in his country of origin.

Value Added Tax :

All the goods and services are subject to a 19% VAT rate, excepting the exported goods and services, lawyers fees, raw materials and materials transformed into finished products and exported within 45 days from importation, as well as the services and transport activities in relation to export operations.