| 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.
| 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.