Romania

Overview

Last reviewed - 21 July 2020

Romania 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.

According to the information published by the National Bank of Romania (NBR), non-residents' direct investment in Romania totaled 5,296 million (EUR) in 2019 (compared with EUR 5,266 million in January through December 2018), of which equity (including estimated net reinvestment of earnings) amounted to EUR 5,177 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, Constanta, Iasi 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 years equals the calendar year; for the cases where the fiscal year is different than the calendar year, the annual CIT return is due by 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.

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.

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

PIT final payment due date

NP

PIT estimated payment due dates

NP

Value-added tax (VAT) rates
Standard VAT rate (%)

19

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: 5* / NA / NA;

Non-resident: 5 / 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
Corporate capital gains tax rate (%)

Capital gains are subject to the normal CIT rate.

Individual capital gains tax rate (%)

Capital gains are subject to the normal PIT rate.

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

NA

Gift tax rate (%)

NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.