If you want to open a firm in Romania, you will have to consider the corporate income tax (CIT) imposed. We invite you to read this article and see how this tax is imposed on company profits registered here, mentioning that you can rely on the services of our Romanian accountants in terms of taxation.
| Quick Facts | |
|---|---|
| Who pays corporate tax in Romania | – local and foreign companies with permanent establishments in Romania, – non-resident companies with incomes generated in Romania |
Corporate tax rate | 16% |
CIT for gambling and nightclubs | 5% on the revenue obtained or 16% on the taxable profit |
| CIT for micro-enterprises | For those with at least 1 employee – 1%; With no employees – 3% |
| Taxation for capital gains | 16% |
| Taxation of dividends | No CIT under certain circumstances |
| Who qualifies for 50% payment of CIT | Companies with activities in R&D |
| Payment of corporate tax | Quarterly or annualy |
| Double tax treaty protection (YES/NO) | Yes |
| CIT exemptions | – religious cults, – foundations, – public institutions, – homeowners associations, – State Treasury |
| Advance payments accepted (YES/NO) | Yes |
| Tax exemptions for reinvested profits (YES/NO) | Yes |
| Tax compliance and advice | Available for company owners in Romania |
| Accounting services offered (YES/NO) | Yes |
| Free case evaluation (YES/NO) | Yes |
| Tax year | Calendar year (January 1st – December 31st) |
Advance tax payments | Companies are required to make quarterly advance tax payments based on estimated annual income. |
Fiscal losses | Companies can carry forward fiscal losses declared in the annual CIT returns for up to seven years. |
| VAT rate | – standard rate: 19% – reduced rate: 9% for food products, non-alcoholic beverages, medicines, and medical equipment; – further reduced rate: 5% for books, newspapers, magazines, etc. |
| Dividend tax exemption | If the beneficiary holds a minimum of 10% of the shares for at least one year. |
| Tax return filing deadline | March 25th of the year following the tax year (can be extended until June 25th for certain taxpayers). |
| Accounting standards for corporate tax in Romania | Romanian Generally Accepted Accounting Principles (GAAP) are followed, but International Financial Reporting Standards (IFRS) are also allowed for certain entities. |
| Tax audits | Companies may be subject to tax audits by the tax authorities to verify compliance with tax regulations. |
| Expense deductions allowed (yes/no) | Yes, only if incurred for the purpose of generating taxable income. |
| Tax deductions | Certain expenses, such as business-related costs, employee salaries, and contributions to pension funds, are generally deductible for tax purposes. |
| Tax incentives for priority sectors | Various tax incentives and exemptions are available for investments in specific sectors, such as manufacturing, energy, research, and development. |
| Tax identification number (TIN) | Companies operating in Romania must obtain a tax identification number (TIN) from the tax authorities. |
| Tax administration | The National Agency for Fiscal Administration (ANAF) is responsible for the administration and collection of taxes, i.e.; corporate tax in Romania. |
| Tax treaty network | Romania has signed approximately 87 tax treaties with other countries to prevent double taxation and promote international trade. |
| Tax incentives for startups | Various incentives are available for startups, including reduced social security contributions, exemptions from certain taxes, and grants for innovation and development. |
Table of Contents
What is the corporate income tax in Romania in 2026?
16%.
Who pays the corporate income tax in Romania?
Romanian and foreign companies with permanent establishments and activities in this country.
How is the corporate income tax imposed in Romania?
- on the worldwide income registered by Romanian resident companies,
- on the registered income in Romania in the case of foreign companies.
Is there any CIT reduction applicable in Romania in 2026?
Yes, the Minimum Turnover Tax (IMCA) of 0.5% (reduced from the previous 1%) applies to large companies with an annual turnover exceeding EUR 50 million.
NOTE! IMCA will be eliminated starting in 2027.
Here is an infographic that explains more:
Is there a simplified tax regime for small businesses in Romania?
Yes, microenterprises in Romania are subject to a flat 1% tax rate on annual turnover of no more than EUR 100,000.
Is there a special CIT for oil & gas companies in Romania?
Yes, there is an additional 0.5% turnover tax (ICAS) apart from the 16% CIT imposed.
What is the OECD Pillar Two Rule, and how does it apply in Romania?
An effective minimum tax of 15% is imposed on large multinational and local company groups with annual revenues of at least EUR 750 million.
Are there any tax incentives in Romania in 2026?
Yes, here are some examples:
- 10% refundable tax credit for companies activating in the R&D sector in Romania through the CIT is reduced,
- direct cash payments from the state are made under certain conditions met by specific companies,
- 50% additional deduction on operating expenses as an R&D incentive,
- 3% bonus CIT deduction for taxpayers settling their annual financial obligations.
Are there any CIT exemptions in Romania?
Yes, CIT is not imposed for:
- non-profit organizations,
- non-governmental organizations,
- educational institutions,
- religious institutions,
- public institutions,
- no CIT for R&D companies for the first 10 years of activities, etc.
Here is a video presentation on this topic:
What is a participation exemption in Romania?
The income-type exemption or participation exemption refers to the CIT that is not paid under certain conditions, for instance, holding at least 10% shares in a company for at least one year. The same applies to dividends received from foreign subsidiaries, part of the double taxation treaties signed with Romania.
Are there any taxes on reinvested profits?
Yes, reinvested profits in a company’s technology and equipment are exempt from corporate income tax in Romania. Numerous company owners in Romania ask for tax minimization methods and reinvest the profits in different areas of the firm.
Can the corporate income tax be paid quarterly?
Yes, owners of companies registered in Romania can choose to pay the corporate income tax quarterly or yearly, depending on the business needs.
What happens if I do not pay the CIT in time?
Company owners in Romania must respect the taxation regime of this country and align with the conditions imposed. The authorities can impose severe penalties if the taxes are not paid on time.
How do branches and subsidiaries pay the corporate income tax in Romania?
Branches and subsidiaries established in Romania need to pay the corporate income tax on a quarterly basis, as stipulated by the legislation.
If you need more information about the corporate income tax paid by a company in Romania or you are interested in financial services, such as audit services in Romania, you may call our accountants in Romania.