Taxes - Romania
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 19%, whilst the reduced rate is 9% 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 19%, 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.
Income taxes are paid annually.
Ways of paying taxes:
- in cash at the regional offices of the Directorate of Local Taxes and Dues;
- by payment order;
- by credit card held by the taxpayer at the Directorate of Local Taxes and Duties;
- by postal payment order.
Information about the deadlines and ways of paying taxes and duties in Romania can be found in the Tax Register available on-line.
On-line filing of tax declarations
The Agenţia Naţională de Administrare Fiscală, ANAF (National Agency for Fiscal Administration) is the main mechanism that collects revenue for the state budget. Tax declarations can be filed on-line by accessing the ANAF portal:
Taxpayers who register on this portal will receive a digital certificate for their digital 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: a declaration of their liabilities to the consolidated general budget, tax on profit, VAT deductions, special VAT deductions, excise duty deductions and revised declarations.
Large taxpayers must use the national e-government electronic system to file tax declarations.
Check also the legislation on this topic in: