Tax on micro-enterprises of 1% - 3%
The new system of differentiated tax rates, based on the number of employees, introduced recently in the Fiscal Code, implies a 3% tax rate for micro-enterprises that do not have employees. Therefore, every Romanian SRL, setup for doing business in Romania, will have this tax advantageous tax on income rate. If the new formatted company, will hire a minimum of 1 employee, the rate will decrease to 1%, applied to the total company revenue.
Dividend tax of 5%
Dividend income tax rate paid for resident individuals is 5%, and the tax is withheld at the date of payment of the dividend and must be paid to the budget by the 25th of the following month by the SRL. The dividend payer, the distribution company, is required to file two tax returns, namely a monthly statement to the state budget, informing the tax authorities how much dividend tax it will pay to the budget, and an informative statement with all the dividend and taxes on dividends payments for that year for individuals.
Dividend tax of 0% for affiliated legal persons
According to Article 43 (4) of the Romanian Fiscal Code, the provisions on the withholding, declaration and payment of dividend tax shall not apply to dividends paid by a Romanian legal person to another legal person if the legal person receiving the dividends holds, at the date of payment of the dividends, at least 10% of the shares of the other legal entity for a period of one year until the date of their payment inclusively.
VAT rate of 19%
The Romanian Fiscal Code has made important changes in all areas of taxation, including value added tax (VAT). Thus, the standard VAT rate has dropped from 24% to 20%, having a major impact on both consumers and economic agents.
VAT rate of 5% for real estate
The current legislation grants a reduced VAT rate of 5% for the delivery of social housing, including the land on which it is built. Specifically, Romanian or foreign citizens who buy property in Romania worth no more than 450,000 lei (about 100,000 Euros) benefit from a reduced VAT rate of 5%.