Information about business-environment

Business environment in Romania

Our team of consultants can create an up to date report for you with the business environment in any field of activity you might need to learn about. We can provide who are the biggest players in a specific field, which are the difficulties of the field at the moment, which are the strong points and some commercial advices about the places (cities) where is better to invest.

Data about Romanian Fiscal Environment

The social security contributions which are paid by both employers and employees in Romania are:

  1. Pension insurance contribution: 25%
  2. Health insurance contribution: 10%
  3. Salary tax: 10%
  4. Labour insurance contribution: 2.25%

The VAT tax in Romania is charged to taxable bodies registered for VAT purposes according to art.153 from the tax code.

The standard VAT rate is 19%. The 9% reduced VAT rate is provided by the Tax Code for certain services and/or supplies of goods, including all kinds of bread and bakery products and different varieties of wheat. The reduced rate of 5% applies to the tax base for the delivery of housing as part of social policy, including the land on which they are built. VAT exemptions are provided in the Fiscal Code.

The Income tax is payable by Romanian legal entities and permanent establishments in amount of 1% with some conditions (the most important si hiring of minimum one person with the minimum gross salary). If a company doesn’t hire a minimum one person in 30 days, the tax will be 16% from the profit. The tax on dividends distributed by Romanian legal person is also 8%.

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