We offer the following services:
- Preparation and submission of VAT returns
- Preparation of accounts
- Registration of new businesses for tax and VAT
- Completion and filing of online company tax returns
- Tax advice for small/medium sized businesses and individuals
- Resident and non-resident tax advice
You can set up the following types of business in Romania:
- Limited Liability Company (SRL)
- Joint Stock Company (SA)
Limited Liability Company (SRL)
This is the most popular type of company in Romania. The minimum required share capital is relatively low, at just €60. SRLs must have no more than fifty shareholders, but there are no restrictions on the nationality of the shareholders – they may be Romanian or foreign domiciles.
Joint Stock Company (SA)
SAs are the compulsory form of company for businesses with activities in the sectors of banking or insurance. The minimum required share capital is €25,000 and 30% of this amount must be paid up. There should be at least five shareholders and one director, and financial reporting is regulated by three ‘censors’.
NB: Company taxation has two options, tax on revenue or tax on profit. Companies can also choose whether or not be VAT payers. The decisions for these options must be made at the beginning of the company’s formation. We offer consultancy on this matter so please contact us for further details.
MAIN TAXES IN ROMANIA
The two main types of taxation in Romania are:
- Corporation Tax
- Personal Income Tax
Other types of tax such as Capital Gains Tax may also be required depending on income.
The Corporation Tax rate in Romania is 16%
PERSONAL INCOME TAX
The Personal Income Tax rate for Romanian residents does not vary according to income level, but stands at a flat 16%.
The basic VAT rate in Romania is 19%. There is also a reduced rate for certain products and services.
CAPITAL GAINS TAX
The applicable rate of Capital Gains Tax is 16% for both companies and individuals. There is a reduced rate of 1%-3% for any individual gains from real estate sales.