Supreme Court High Court Judgment updates| taxation GST laws| NRI help

Romania Income Tax Rate  for 2018-2019. Capital Gain Tax, Personal Individual and Corporate / Companies tax Rates for Residents and Non Residents

 

 

Romania Personal Income Tax Rate for 2018

Taxable Income Tax Rate
Standard Rate 16%

 

Tax Exemptions in Romania

The following categories of employees can avail tax exemption in Romania

 

IT specialists

Tax exemption is a highly documented process and must respect a certain strict set of provisions.
 

Employees with disabilities

Tax exemption is granted only under strict conditions verified by Romanian medical system.


Employees who work in Research and Development (R&D) or Technological Development field

 Tax exemption is granted if certain conditions are met as per law provisions.

 

Personal deduction

The Fiscal Code is bringing new rules for personal deduction calculation methodology. The gross monthly income for personal deduction has been increased to RON 1,500. The personal deduction levels have also been increased, being established between RON 300 (for persons who do not have dependents) and RON 800 (for persons with four or more dependents).


Other deductions

The voluntary health insurance premiums incurred by employees will be deductible for salary tax purposes within the limit of EUR 400 annually.

 

 

Corporate / Company Income Tax Rate in Romania for 2018

Taxable Income and Description Tax Rate
Standard income tax rate on corporations 16%
Taxpayers that are carrying on activities such as gambling and nightclubs are either subject to 5% rate of the revenue obtained from such activities or to 16% of the taxable profit, depending on which is higher. 5% or 16%

 

Residence

A company is considered as resident in Romania if it is set-up under Romanian law, has its legal seat or its place of effective management in Romania.


Taxable income

Resident companies are taxable on their worldwide income, unless a double tax treaty stipulates otherwise.


The taxable profit of a company is calculated as a difference between the revenues and expenses registered according to the applicable accounting regulations, adjusted by deducting non-taxable revenues and tax deductions and by adding non-deductible expenses. Also, elements similar to revenues and expenses are taken into account when calculating the taxable profit.


Non-resident companies that are carrying on activities in Romania through a permanent establishment are required to pay corporate income tax for the taxable profit attributable to the permanent establishment.


Tax period

The calendar year or the fiscal year for the companies that have chosen, according to the applicable accounting regulations, to apply a fiscal year different from the calendar year.


Tax returns and assessment

As a general rule, the corporate income tax is calculated quarterly. For the first three quarters the filing and the payment of the corporate income tax is performed quarterly, until 25th of the first month following the end of the quarters. The final computation and payment of the corporate income tax for the whole calendar year is to be performed until March 25th of the following year.


There are exemptions from the above general rule that apply to companies such as:
Companies that have chosen the fiscal year different from the calendar year have to declare and pay the annual corporate income tax until 25th of third month after the ending of the fiscal year changed.


Non-profit organizations, companies that obtain revenues mainly from agricultural activities, educational units, religious cults and other taxpayers specifically mentioned by law have to declare and pay the annual corporate income tax by February 25th of the following year.


Credit institutions and branches of foreign credit institutions in Romania are required to apply the system of quarterly advance payments.

 

About Us | Privacy Policy | Disclaimer | Sitemap