Company taxes imposed in Romania in 2025

Last updated: 01 January 2025.

In Romania there are 2 alternative company taxes: the 1% or 3% turnover tax and the 16% profit tax.

Turnover tax (income or revenue tax)

Currently, there are 2 applicable turnover taxes: 1% and 3% tax on turnover.

Turnover taxation is labeled as a special taxation. Companies that would like to trigger this taxation must fulfil these requirements:

• The 1% tax on turnover is for companies with a yearly turnover up to EUR 60.000. Certain business activities (e.g.: IT and computer related, hotels, restaurants, medical assistance etc.) are not eligible for 1% tax, but the 3% can be triggered.

• The 3% tax on turnover is for companies having a yearly turnover of more than EUR 60,000, but limited to EUR 250,000. Starting with 01 January 2026, this limit will be lowered to EUR 100,000.

• The company must have at least 1 employee or the director must conclude a management agreement with the company for the monthly minimal gross salary - EUR 810. Hence, the monthly payroll taxes to be paid is around EUR 310.

• The yearly financial statements must be duly and timely submitted. For this, the services of an accountant are required.

A shareholder (natural person) can own only one company having the turnover taxation.

If the above conditions are not met, the company becomes a profit taxpayer (16% tax on profit) and it cannot switch back to the turnover taxation.

Profit tax

The company tax is 16% on profit (profit meaning turnover minus business expenses).

There is no condition to trigger profit taxation.

Any company that is not eligible for the 1% or 3% turnover tax will be subject to the 16% profit tax.

VAT

In Romania, the VAT is 19%.

A lower VAT rate is applicable only in some cases.

Before reaching a yearly turnover of approx. EUR 60,000, a company can become a VAT payer only by explicit request.

After reaching a turnover of approx. EUR 60,000 in a given year, a company automatically becomes a VAT payer and the accountant will file a certain application to obtain the related certificate.

Dividend tax

If the company generates profits, the shareholder has the choice (not the requirement) to withdraw the profits as dividends.

Before the dividends are withdrawn, the company must pay on behalf of the shareholder, the dividend tax of 10%.

Health insurance tax, only when withdrawing the dividends and only for shareholders residing in Romania

If the shareholder residing in Romania receives dividends, they are required pay a health insurance tax:

• Fixed EUR 486 per year, if the yearly dividends are between EUR 4,860 and EUR 9,720 (approx.);

• Fixed EUR 972 per year, if the yearly dividends are between EUR 9,720 and EUR 19,440 (approx.);

• Fixed EUR 1,944 per year, if the yearly dividends are above EUR 19,440 (approx.).

The above health insurance tax is not paid if the shareholder does not reside in Romania.

Such tax is calculated per shareholder.

Other taxes

There are some special taxes applicable to companies with a high yearly turnover (EUR 50 million) which act in different business sectors (e.g. oil & gas, financial sector etc.)

To duly organize the business activity and to fulfil all the tax & accounting duties, the company needs to retain the services of a Romanian chartered accountant.

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