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Romania
Overview
Last reviewed - 25 April 2024Romania is located at the crossroads of Central and Southeastern Europe, bordering the Black Sea between Bulgaria and Ukraine. The capital and largest city is Bucharest. The official language is Romanian, and the currency is the Romanian leu (RON).
Romania borders to the north with Ukraine, to the south with Bulgaria, to the east with Moldova, and to the west with Hungary and Serbia. It is the ninth country in area and seventh in terms of population among the member states of the European Union (EU).
According to the information published by the National Bank of Romania (NBR), non-residents' direct investment in Romania totalled 1.229 million euros (EUR) in the period January 2024 through February 2024 (compared with EUR 1.345 million in the period January 2023 through February 2023), of which equity participations (including estimated net reinvestment profit) totalled a net value of EUR 1.105 million and intra-group loans recorded a negative net value of EUR 124 million.
PwC has been present in the Romanian market since 1991 and has developed a broad range of professional services that we continue to expand. With our in-depth knowledge of Romania’s business environment, PwC provides its services to both international and Romanian enterprises. Overseen by 21 partners and employing over 800 specialists and support staff, PwC operates in Romania and Moldova from a network of six offices in Bucharest, Timisoara, Cluj-Napoca, and Chisinau.
Quick rates and dates
| Corporate income tax (CIT) rates | |
|---|---|
| Headline CIT rate (%) |
16 |
| Corporate income tax (CIT) due dates | |
|---|---|
| CIT return due date |
The annual CIT return is due by 25 March of the following year if the fiscal year equals the calendar year; for the cases where the fiscal year is different than the calendar year, the annual CIT return is due by the 25th day of the third month after the end of the company’s fiscal year. Quarterly CIT returns are submitted by the 25th day of the month following the first, second, and third quarters. For the period 2021 - 2025, the deadline for submitting the annual CIT return is 25 June of the following year, or the 25th day of the sixth month following the end of the amended fiscal year. |
| CIT final payment due date |
The final CIT payment is generally due on the 25th day of the third month after the end of the company’s fiscal year. For the period 2021 - 2025, the final CIT is due by 25 June of the following year, or by the 25th day of the sixth month following the end of the amended fiscal year. |
| CIT estimated payment due dates |
Quarterly instalments are due by the 25th day of the first month following the first, second, and third quarters. |
| Personal income tax (PIT) rates | |
|---|---|
| Headline PIT rate (%) |
10 |
| Personal income tax (PIT) due dates | |
|---|---|
| PIT return due date |
25 May of the year that follows the one when the income was derived for annual income tax and social contributions liabilities and on a monthly basis for income that is subject to income tax and social contributions withholding and for salary income derived from non-resident employers. |
| PIT final payment due date |
25 May of the year that follows the one when the income was derived for annual income tax and social contributions liabilities and on a monthly basis for income that is subject to income tax and social contributions withholding and for salary income derived from non-resident employers. |
| PIT estimated payment due dates |
NP |
| Value-added tax (VAT) rates | |
|---|---|
| Standard VAT rate (%) |
19 |
| Withholding tax (WHT) rates | |
|---|---|
| WHT rates (%) (Dividends/Interest/Royalties) |
Resident: 8*/ NA / NA; Non-resident: 8*/ 16 / 16 (the rates can be reduced by applying the Parent-Subsidiary Directive, the Interest-Royalties Directive, or a DTT) *WHT rate on dividends may be reduced to 0% in case the beneficiary company held at least 10% of the shares in the company distributing the dividends for at least one year. |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) |
Capital gains are subject to the normal CIT rate. |
| Headline individual capital gains tax rate (%) |
Capital gains are subject to the normal PIT rate. There are also exceptions from the standard rule. |
| Net wealth/worth tax rates | |
|---|---|
| Headline net wealth/worth tax rate (%) |
NA |
| Inheritance and gift tax rates | |
|---|---|
| Headline inheritance tax rate (%) |
NA |
| Headline gift tax rate (%) |
NA |
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