Tax
System
The
corporate income tax rate is 16%, which applies
to both resident companies, and those operating
through a permanent establishment in the country.
However,
a lower rate (3% at the time of writing) is imposed
on qualifying small companies. In order to qualify
for the reduced rate, the small business in question
must have between 1 and 9 employees, an annual
turnover of less than EUR100,000, and must be
either engaged in 'productive activity', or in
the provision of brokerage, banking, insurance,
or consultancy services.
Corporate
income tax payments should be made quarterly.
An
exemption on gains (although there is no capital
gains tax as such) made on shares listed on the
Romanian stock exchange is available for non-resident
companies and other legal entities during 2009.
A
16% withholding tax is imposed on dividends paid
to non-resident companies (reduced to 10% for
payments to other EU countries in 2009), unless
exemption is available under the terms of the
EC parent-subsidiary directive.
A
standard 19% VAT rate and is applied to supplies
of goods and services within the country and exports
and imports. There is a reduced rate of 9%, which
applies to medicines, some books and newspapers,
certain accommodation related services, inter
alia.
Zero
rating applies to exports and services related
to them, and exemptions from VAT are in place
for services relating to immovable property, financial
services, insurance services, and services relating
to education, health and welfare.
A
range of employment related taxes, including social
security, health fund and unemployment contributions
are payable by employers in Romania.
Further information
on Romania:
|
Lowtax Network Portal
Front Page
Tax Jurisdictions
Featured Content
