Romania Tax Rates 2023(Last partial update, April 2023)
Individual Income Tax: Romania's individual income tax rate for 2023 is flat at 10%.
Corporate Tax: Romania's corporate tax rate for 2023 is 16%.
Micro companies with a turnover less than EUR 500,000 pay 1%.
Capital Gains: Capital gains of companies are taxed at 16%.
For individuals the standard capital gain tax rate is 10%.
For gains from sale of real estate the rate is 3% or 1% if held for more than three years.
Dividend income received by a resident Romanian individual after January 1, 2023 is taxed at 8%
Romania taxes: ResidenceRomanian companies and individuals pay tax on their Romanian and worldwide income. Non -residents companies and individuals pay tax only on Romanian source income.
A foreign company is resident if the management is in Romania.
An individual is resident if the center of living is in Romania, or if staying in Romania for 183 days within 12 months.
Romania Tax Deductions
- Losses are carried forward for seven years. There is no carryback for losses.
- Depreciation is deducted using one of the 3 methods,the straight line method, the reduced balance depreciation and the accelerated method.
- Provisions for bad debts are allowed under certain terms.
- There is a company consolidation for tax purpose, subject to certain terms.
- Finance expenses are allowed up to EUR 1 million plus 30% of the EBITDA.
The excess may be carried forward indefinitely.
Romania Deduction of Tax at SourceIn Romania tax is deducted at source from the following payments to non-residents:
Technical Fees – 16%.
Note: the tax withholding rates are subject to double taxation treaties and EU interest and royalties directive.
Romania Social SecurityThe contributions by the employer and the employee are subject to ceiling defined by law.
Emploers - Pay 4%/8% for pension.
- Pay 2.25% for labor fund.
Employees-Pay 25% for pension.
- Pay 10% for health fund.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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