PFA (authorized person) and IE (individual enterprise) taxes imposed in Romania in 2025

Last updated: 01 January 2025.

Such taxes apply in case of an individual enterprise (IE) or authorized person (PFA), not to companies.

As an alternative to the company, the EU citizens and the residents of Romania, can open an PFA or IE.

This is like an individual contractor entity, but it is not a company.

In principle, a PFA/IE can undertake (almost) any type of business, same as a company.

The taxation for PFA/IE, starting with 2025:

• The net income tax: 10%;

• The health insurance tax:

  • If the yearly income is below approx. EUR 48,600, the PFA/IE shall pay a yearly 10% health insurance tax on the actual income;

  • If the yearly income is over approx. EUR 48,600, the PFA/IE shall pay a yearly fixed EUR 4,860.

• The social insurance tax (pension tax):

  • No social insurance tax has to be paid, it is optional, if the yearly income is under EUR 9,720 (approx.);

  • Fixed EUR 2,430 per year, if the annual income is between EUR 9,720 and EUR 19,440 (approx.);

  • Fixed EUR 4,860 per year, if the annual income is above EUR 19,440 (approx.).

The PFA/IE can become a VAT payer, for more details please check the VAT section for companies which is also applicable to the PFA/IE: here.

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

For more information, please contact us by filling out the form below or using the contact details below.