Company registration in Romania

Regardless of the wanted type of company, the services offered by us are :

- Incorporation, amendments and striking-off for companies and self-employed persons

- Transfer of shares, increase and decrease of social capital

- Addition and authorization of objects of activity

- Business places establishment and closing

- Changes of head offices, designation, management, auditors

- Dissolution, liquidation, voluntary striking-off of companies

- Suspension or resumption of activity of a company or self-employed person

- Updating information on the founders, auditors

General informatios about taxes in Romania

1. In the case of legal persons in Romania we have two tax systems:

- Micro-enterprises tax, rate is 1% ,which basis is the total net income of the company. It is important to note that in this case the costs will not reduce the taxable base nor the micro-enterprise tax. From 2023 the micro-enterprises must have at least a full time employee, or more part time employees covering a full time job, and the income limit is reduced to 500.000 EUR. In the event that the annual net turnover excess 500.000 EUR, the business will be transferred to the profit-based taxation system.

- Profit(corporation) tax rate is 16%. The tax base is the difference between the taxable incomes and deductible expenses.

The deadline for payment of the micro-enterprise tax:

- In the I quarter earnings until after April 25

- II quarter until July 25

- The third quarter to October 25

- IV quarter until June 25 next year

2. Gross minimum wage is 3.300 lei in Romania for full-time job.

Employers' contributions: 2,25%

Employee contribution rates: 35%

Employee income tax rate of 10% (gross salary - Employee contributions = tax base)

There are also opportunities to give food vouchers for employees, for which no contributions to be paid, only personal income tax to be paid (10%) .

Minimum wage in the construction industry is 4.582 lei (Tax facilities,under some conditions : the employees don't have to pay personal income tax , and the pension contribution is reduced to 21,25%)

Minimum wage in the agriculture sector is 3.436 lei (Tax facilities,under some conditions : the employees don't have to pay personal income tax, and the pension contribution is reduced to 21,25%)

The deadline for payment of contributions in first year is the same as the micro-enterprise tax payment deadline.

The next year, when the turnover exceeds 100.000 EUR or, the average number of employees will reach 3, then the contributions shall be paid monthly.

3. The standard VAT rate is 19%, but there are also 2 reduced rate : 9% and 5%.

Payable / recoverable VAT = VAT collected on sales - deductible VAT after purchases.

The payable VAT deadline can be monthly or quarterly.

Quarterly VAY payer may be the business that was not buyed goods from EU, and business turnover does not exceed 100.000 EUR value. If the two conditions are not met at the same time, it will be monthly VAT payer.

In 2012 has been introduced a modification to the Fiscal Code VAT title , wich stipulate that the VAT become chargeable only when issued invoices are total or partial collected (until 4.500.000 RON turnover).

But the VAT from purchases are deductible only when the invoices are payed(total or partial).

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