The standard corporate income tax rate is 16% for Romanian companies and foreign companies operating through a permanent establishment (PE) in Romania. Resident companies are taxed on their worldwide income, unless a double tax treaty (DTT) stipulates otherwise. Non-resident companies are taxed on all income derived from Romanian taxpayers, regardless of whether the services are rendered in Romania or the ones which are tax resident in Romania due to place of effective management.
The corporate income tax due for nightclubs and gambling operations is either 5% of the revenue obtained from such activities or 16% of the taxable profit, whichever is higher.
Micro-company tax regime
Micro-companies are subject to a mandatory revenue tax rate (see details below) in lieu of the standard corporate income tax.
The condition for a company to be considered a micro-company is to have a maximum revenue at the end of the previous year of 1 million (EUR).
The tax rates used for micro-company income tax are:
- 1% for micro-companies with one or more employees.
- 3% for micro-companies with no employees.
Newly established companies are required to follow the micro-company tax regime starting with the first fiscal year.
Micro-companies can opt once for applying corporate income tax if they fulfil both of the following conditions:
- Have a subscribed share capital of at least 45,000 Romanian lei (RON).
- Have at least two employees.
The calculation and payment of tax for micro-companies shall be performed quarterly, by the 25th day (inclusive) of the month following the quarter for which the tax is calculated.
Local income taxes
There are no county or local taxes on corporate income.