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.)}