General tax consulting services

Our team is offering services of tax consulting and general business consultancy, answering to any specific questions of clients related to various aspects of legislation and fiscal practices in Romania. We are offering services on an on-going base or to a specific project, preparing written opinions and advices and keeping clients updated with fiscal legislation changes. Fiscal legislation in Romania is passing through a continuous process of changes and updates, with immediate impact on the business environment. Companies operating in Romania must be notified about all these changes in order to take advantage of opportunities offered by the Romanian tax system, but also to comply with its requirements.
Our tax consulting services are focused on the following main categories:
Profit tax

All companies registered in Romania with an annual turnover exceeding 1,000,000 euro (equivalent in RON) must pay a profit tax for their taxable profit. Current profit tax rate is 16%.
Do you need more information on this topic? Contact us at office@bader.ro

Income tax for micro-companies

All companies registered in Romania with an annual turnover lower than 1,000,000 euro (equivalent in RON) must pay an annual tax, calculated on their annual income. Current income tax rate for micro-companies is 1% on annual turnover if the company has at least 1 employee and 3% on annual turnover if the company has no employees. Do you need more information on this topic? Contact us at office@bader.ro

Permanent establishment

The permanent establishment is a place where all or part of the activity of a non-resident company or individual is carried out, either directly or through a dependent agent. When defining the permanent headquarters, the comments from Art. 5 “Permanent Headquarters” of the Organization for Economic Co-operation and Economic Development (OECD) model of double taxation avoidance convention must be considered. Profit tax for a permanent establishment is calculated solely on the taxable profit that can be allocated for the specific permanent establishment, using a similar method as for the general profit tax. Current profit tax rate is 16%. Do you need more information on this topic? Contact us at office@bader.ro

Income tax for private individuals

All local tax residents gaining incomes from independent activities, investments, salaries, pensions or any other income should pay tax on their annual income. The current tax rate for individuals is 10% and each individual can benefit from various deductions on the tax for annual income, depending on the nature of their income. Do you need more information on this topic? Contact us at office@bader.ro

Local taxes (ex: land, buildings, vehicles, etc.)

Companies registered in Romania and private individuals that are resident in Romania must pay taxes on properties they own. The tax is annual and is due to the local budget of the commune, town or city where the building is located. Do you need more information on this topic? Contact us at office@bader.ro

Value added tax – VAT

VAT is an indirect tax collected by the Treasury Office. Romania has implemented the E.U. Directive 2006/112/CE related to the common system of VAT. Current VAT rates are 19% (general rate), 9% (human and animal food, medicines for human and animal use, fertilizers, pesticides, etc.), 5% (books, newspapers, leisure activities, hotel accommodation, restaurant food, and housing – under special restrictions), 0% (hospital activities, educational activities, banking and insurance activities etc.). Do you need more information on this topic? Contact us at office@bader.ro

Duties and other import taxes

Companies performing definitive import of goods from non-E.U. countries must pay import duties and VAT for the import of these goods, at the moment of the import. Duties, commissions and VAT are calculated according to E.U. Regulation 952/2013 regarding the common Custom Code for the E.U. Depending on their country of origin, the goods can be exempt from payment of duties and commissions. There is no exemption related to payment of VAT for the definitive imports. Various regimes for import of goods (temporary admission, transit, definitive import, free zones, etc.) are available in Romania. Do you need more information on this topic? Contact us at office@bader.ro