Taxes in Romania

 

 The ordinary rate of tax 

The ordinary rate of tax on profits made by Romanian companies is 16%.

Most long term capital gains are taxed at the standard rate of corporation tax at 16%.

Representative offices are subject to a fixed tax of an amount equivalent to 4,000 euros.

In contrast, permanent representations (subsidiaries, factories, agencies, etc.) of foreign companies are subject to the standard rate of 16%.

 

 Income tax 

In general, the tax on income of individuals is now fixed rate: a single rate of 16% applies.

But individuals can benefit from a tax reduction.

 

 Tax System 

France and Romania are bound by a treaty to avoid double taxation.

 

 Different VAT rates 

Standard rate 24%.

Reduced 9% rate for certain activities (drugs, hotels, services, books, etc.)