Corporate Income Tax in Romania

The corporate tax in Romania is an annual tax in principle that affects all profits made in Romania by corporations and other entities. Romania companies pay tax on their Romanian and worldwide income. Non-residents companies pay tax only on Romanian source income. A foreign company is resident if the management is in Romania. 

Tax due date
The tax can be paid quarterly or annually:
• quarterly – by the 25 of the first month following the quarter for which the tax was computed
• annually – with payments made in advance every quarter, by the 15 of April ot the following year

Tax rate
The taxable profit shall be calculated as the difference between the income obtained from any source and the expenses effected for the purpose of obtaining incomes, during a fiscal year, from which non-taxable incomes are deducted and to which non-deductible expenses are added. Income and capital gains earned by corporations are taxed at a flat rate of 16 %. Losses are carried forward for 5 years; there is no carry back for losses.

Capital gains for corporations
Capital gains obtained from sale of immovable property by corporations are included in ordinary profits and taxed at the standard rate of 16 %. It is a reduced rate – 10 %. It is applies, when the property was acquired after 31 December 2003 and was held for more than 2 years and the buyer and seller are not related parties.

Corporate micro-enterprises tax
Romanian legal persons liable to pay taxes on the small enterprises income that cumulatively satisfies the following conditions:
• the number of employees is form 1 to 9
• the realized incomes do not exceed the equivalent in RON of 100 000 EUR
• the social capital of the legal person is owned by persons other than the state, local authorities and public institutions
In 2008 is the tax rate 2.5 % and in 2009 is the tax rate 3 %. In case of incomes exceeding the equivalent in RON of 100 000 EUR during the fiscal year, the company has to pay the tax on profit.

Bc. Petr Gola