Company taxes imposed in Romania in 2026

Last updated: 23 February 2026.

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

Turnover tax (income or revenue tax)

The turnover tax is 1%.

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

• The company must have a yearly turnover of up 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 of EUR 810. Hence, the monthly payroll taxes to be paid are 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.

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

VAT

In Romania, the VAT is 21%.

A lower 11% VAT rate is applicable only in some cases.

Before reaching a yearly turnover of approx. EUR 79,000, a company can become a VAT payer only by explicit request.

After exceeding a turnover of approx. EUR 79,000 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Before the dividends are withdrawn, the company must pay on behalf of the shareholder the dividend tax of 16%.

If you would like to know more about when can you extract dividends, please check our guide about when can you get the money out of a Romanian company.

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.

Want to know more about shareholders, directors, and Romanian companies? Check out our complete guide on Romanian company registration.

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