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01 January 2026

Company Taxes in Romania in 2026 and Key Changes in Microcompany Turnover Tax and Dividend Tax

As Romania business landscape evolves in 2026, understanding the country's taxation system is crucial for entrepreneurs and corporations. Staying informed on the latest tax regulations can help you optimize your tax strategy. In this guide, we'll explore Romania company tax in 2026, from corporate income tax, turnover tax, profit tax to dividend tax. We will also delve into microcompany tax, foreign businesses and other corporate tax like capital gains tax or withholding tax. Get ready to stay ahead with our insights on Romania rates and taxes 2026!

 

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The year 2026 brings a series of fiscal and budgetary measures aimed at maintaining Romania's financial balance. These changes, although not easy, are not dramatic either. They reflect an attempt to prioritize public resources, control spending and encourage the adaptation of the economic environment to new rules, but also with impact in the taxes applied to business and company in Romania, including microcompany turnover tax and dividend tax, payroll taxes of IT industry and construction fields.

 

1. Microcompany tax changes in 2026. Micro-enterprises enter a new stage

 

The micro-enterprises in Romania can benefit of the microcompany turnover tax of 1% tax rates in 2026 in the following conditions:

 

  • 1% turnover tax to be paid by Romanian companies whose turnover does not exceed EUR 100,000 or

 

In order to benefit of this special revenue tax, the company must contract at least one employee, within a 30 days term since the company setting up in Romania, with the monthly minimum gross wage (EU 854). This condition is considered also fulfilled if you have the quality of company's director and pay social contributions to the Romanian State (the amount of the social contributions based on the minimum wage are EUR 330/month).

 

So, the income threshold to benefit of the microcompany turnover tax in 2026, the maximum income threshold will be EUR 100,000 (decreased from EUR 250,000).

 

Exceeding the income threshold on not contracting an employee: if a micro-enterprise exceeds the established income threshold of EUR 100,000 or if the company does not employ at least one employee within 30 days since its incorporation (or register the director based on the management agreement), it will automatically switch to the corporate income tax regime (16% on the profit), in the quarter in which the limit was exceeded. This requires careful quarterly monitoring of income, in order to avoid tax surprises and associated penalties.

 

Concluding, in order for a Romanian company to benefit of the microcompany tax regime and pay only 1% turnover tax, the enterprise must fulfill the following conditions:

 

  1. total incomes are not exceeding €100,000 during a fiscal year,

  2. private ownership of the share capital,

  3. the company must not be in dissolution,

  4. the company must pay social contributions for at least 1 (one) employee or its director,

  5. the shareholder owning over 25% holding shares can have only one micro-enterprise, and

  6. timely submission of annual financial statements with the tax authority.

 

2. Dividend tax Increases in 2026, From 10% to 16%

 

The dividend tax rate increases to 16% of the gross amount, applicable to dividends distributed after January 1, 2026. 

 

3. Removal of the condition regarding consulting and management incomes up to 20% of company’s total incomes

 

The restriction limiting consulting and/or management income to a maximum of 20% of total income (taxable base) has been removed from the legislation. Therefore, the companies offering consulting or management services can qualify for the micro-tax regime, provided they meet the cumulative requirements outlined above, respectively: total income not exceeding €100,000, private ownership of share capital, not being in dissolution, having at least one employee, a shareholder/associate owning over 25% holding shares in only one micro-enterprise, and timely submission of annual financial statements.

 

4. Support for low-income employees with the minimum wage

 

For employees with minimum wages, 2026 brings a tax exemption of RON 300/month, applicable if the following conditions are met: the monthly gross salary, without bonuses and other benefits, is equal to the gross minimum salary guaranteed in payment in the country and the total gross income, without meal vouchers or other bonuses, does not exceed RON 4,300/month.

 

5. Increase of the Minimum Wage

 

Starting January 1, 2026, the minimum wage will increase to RON 4,350 (EUR 854).

 

Brief Overview on the Taxes Paid by Companies in Romania in 2026

 

In Romania, company taxes in 2026 come with a variety of options, from Turnover tax to corporate income tax / profit tax, VAT, and dividend tax. Understanding these key taxes is essential for businesses to stay compliant and optimize their operations. Here’s an overview of the current tax landscape:

 

Microcompany Turnover Tax: 1% Income Tax or Revenue Tax

 

Romania offers turnover tax rate of 1% with specific eligibility requirements.

 

1% Tax on Turnover: This applies to companies with an annual turnover of up to EUR 100,000.

 

To qualify for turnover taxation, your company must have at least one employee or a director with a management agreement for the minimum gross salary (EUR 854 per month), with payroll taxes around EUR 330 monthly. Additionally, annual financial statements must be submitted on time, requiring an accountant's services.

 

Corporate Income Tax: 16% on the Profit

 

Switching to Profit Tax: If your company doesn’t meet the turnover tax criteria, it will be subject to the 16% profit tax. Once you move to profit taxation, you cannot switch back to turnover taxation. Romania profit tax is calculated as turnover minus business expenses.

 

VAT (Value Added Tax): 21% Standard Rate or 9%/5% Reduced Rates

 

The standard VAT rate in Romania is 21%, with reduced rates applicable to specific goods and services. If your company’s turnover exceeds EUR 77,500 in a given year, it automatically becomes a VAT payer. However, if your turnover is below this threshold, you can opt into the VAT system voluntarily.

 

Dividend Tax: 16% on the Distributed Dividends

 

Shareholders who receive dividends from company profits will be subject to a 10% dividend tax. Additionally, shareholders residing in Romania must also pay health insurance contribution on their dividends. This contribution is only applicable to shareholders residing in Romania.

 

Final Thoughts about Taxes 2026 in Romania: The Year of Adaptation and Planning

 

In 2026, navigating the labyrinth of company taxes in Romania can be a complex yet essential task for businesses aiming to thrive in the dynamic European market. From Turnover tax to income tax, revenue tax, and dividend tax, Romania’s corporate tax landscape is evolving, offering both challenges and opportunities. Understanding the intricacies of VAT, corporate income tax, and profit tax is crucial for businesses looking to stay compliant while optimizing their tax strategies. Whether you’re a local entrepreneur or an international investor, staying ahead of these key taxes will ensure your business remains competitive and efficient in Romania’s growing economy.

 

For more info, feel free to reach out to us at tudor@roadvocacy.ro or you can also use the contact form on our website at www.roadvocacy.ro.

 

The blog of the Romanian lawyer

 

 

 

The Lawyer's corner is nothing else but a legal blog dedicated only for entrepreneurs and investors in Romania 

 

Weekly usefull posts about the investors' first steps in Romania, from the perspective of practicing business law, servicing our clients' needs and litigation, written and published by a Romanian litigation lawyer with over 15 years experience

 

 

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Romanian Advocacy

 

| Your Business | Our Mission |

Romanian Advocacy

 

| Your Business | Our Mission |

Romanian Advocacy

| Your business | Our mission |

 

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