🇷🇴 Corporate Tax in Romania

Limited Liability Company (SRL)

Romania offers two corporate tax regimes. The micro-company regime applies to companies with annual revenue under €500,000 and at least one employee: they pay 1% tax on total revenue (not profit). Companies exceeding the €500,000 threshold or those that choose to opt out pay the standard corporate income tax rate of 16% on profits. Dividends are taxed at 8% withholding. VAT is 19% standard, with reduced rates of 9% (food, hotels, restaurants) and 5% (certain housing). Employers bear social contributions of approximately 2.25% (labour insurance), while employees pay 25% social security (CAS) and 10% health insurance (CASS) from gross salary. The company withholds and remits employee contributions.