Taxes in Romania are governed by the Codul fiscal (Fiscal Code).
The main tax that firms must pay to the state is the tax on profit (difference between taxable income and deductible expenses).
The tax rate on taxable profits is 16%, with several exceptions: certain state-owned enterprises are tax-exempt, and the tax rate applicable to the revenue of micro-businesses is 2-3%.
Excise duties are special consumer taxes on the following domestically-produced or imported products:
- beer, wines and other fermented beverages, and ethyl alcohol;
- intermediate products;
- processed tobacco;
- energy products and electricity.
Value-added tax (VAT) is an indirect tax owed to the state budget. The standard VAT rate is 24%, whilst the reduced rate is 5% and applies to certain services provided and/or goods supplied.
Generally, a firm may choose not to pay VAT if the nature of its work is providing services for individuals. This means that customers who are individuals pay the same amount for a product.
There are two options:
- if the firm does not pay VAT, the customer pays a price without VAT, which is then increased by 24%, with VAT being included in this price;
- if the firm does pay VAT, the customer still pays the same amount, but the price of the product without VAT is a different and smaller amount.
The payment of taxes to tax authorities is made through banks, treasury offices, and other institutions authorised to carry out payment operations.
Ways of paying taxes:
- in cash;
- by payment order;
- by bank card;
- by postal payment order.
Information about the deadlines and ways of paying taxes and duties in Romania can be found in the Tax and Social Contributions Register and in the Non-Fiscal Duties and Fees Register, which are available on-line.
On-line filing of tax declarations
The Agenţia Naţională de Administrare Fiscală, ANAF (National Agency for Fiscal Administration) manages and collects the taxes, contributions, and other amounts due to the consolidated general budget.
Tax declarations can be filed on-line by accessing the e-guvernare.ro portal:
To file tax declarations online, taxpayers need to obtain a digital certificate for their electronic signature, which may only be used for identification and electronic signing of declarations.
On-line filing of tax declarations is available to all categories of taxpayers who are obliged to submit the following declarations:
- the declaration of their liabilities to the consolidated general budget,
- the declaration regarding the tax on profit,
- the declaration regarding the distribution of revenues and expenditures among the partners,
- the declaration regarding the social contribution and revenue tax liabilities and the list of insured people,
- the informative declaration regarding the tax withheld and the gains/losses mad, for each income beneficiary,
- excise duty deductions,
- deductions regarding the tax on national production oil,
- the informative declaration regarding the tax withheld and the gains/losses made, for each income beneficiary,
- VAT deductions,
- special VAT deductions,
- the recapitulative declaration regarding the intra-community deliveries/purchases of goods,
- the informative declaration regarding the deliveries/supplies and purchases made on the national territory, and
- the revised declaration