24 January 2025
Company Taxes in Romania in 2025 and Key Changes in Microcompany Turnover Tax and Dividend Tax
As Romania business landscape evolves in 2025, 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 2025, 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 2025!
The year 2025 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 2025. Micro-enterprises enter a new stage
The micro-enterprises in Romania can benefit of the microcompany turnover tax of 1%/3% tax rates in 2025 in the following conditions:
-
1% turnover tax to be paid by Romanian companies whose turnover does not exceed EUR 60,000 or
-
3% turnover tax to be paid by: a) the companies with revenues exceeding EUR 60,000 or b) the companies engaged in activities corresponding to the following NACE codes: 5821 - Computer game editing activities, 5829 – Editing activities of other software products, 6210 - Custom software development (client-oriented software), 6290 - Other information technology service activities, 5510 - Hotels and other accommodation facilities, 5520 - Accommodation facilities for holidays and short stays, 5530 - Caravan parks, campgrounds, and camps, 5590 - Other accommodation services, 5611 - Restaurants, 5612 - Mobile food service activities; 5621 - Event catering activities, 5622 - Other food service activities not included in other categories, 5630 - Bars and other beverage serving activities, 6910 - Legal activities – only for legal entities not fiscally transparent, established by lawyers according to the law, 8621 - General medical practice, 8622 - Specialized medical practice, 8623 - Dental practice, 8690 - Other human health activities.
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 810). 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 310/month).
So, the income threshold to benefit of the microcompany turnover tax in 2025, the maximum income threshold will be EUR 250,000 (decreased from EUR 500,000).
Exceeding the income threshold on not contracting an employee: if a micro-enterprise exceeds the established income threshold of EUR 250,000 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%/3% turnover tax, the enterprise must fulfill the following conditions:
-
total incomes are not exceeding €250,000 during a fiscal year,
-
private ownership of the share capital,
-
the company must not be in dissolution,
-
the company must pay social contributions for at least 1 (one) employee or its director,
-
the shareholder owning over 25% holding shares can have only one micro-enterprise, and
-
timely submission of annual financial statements with the tax authority.
2. Extension of the activities which can benefit of the microcompany revenue tax of 1%/3%
Starting January 1, 2025, a 3% income tax rate will apply to micro-enterprises engaged in specific main or secondary activities. These activities correspond to the following CAEN codes: 6210 (Custom software development – customer-oriented software), 6290 (Other information technology service activities), 5611 (Restaurants), 5612 (Mobile food service activities), and 5622 (Other food service activities n.c.a.).
3. Dividend tax Increases in 2025, From 8% to 10%
The dividend tax rate increases to 10% of the gross amount, applicable to dividends distributed after January 1, 2025. A notable exception: dividends distributed based on interim financial statements prepared in 2024 will remain taxed at 8%, without further recalculation.
4. 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, starting January 1, 2025, 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 €250,000, 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. Elimination of the fiscal facilities granted to IT sector, construction and agriculture field
Effective January 1, 2025, individuals earning income from salaries and similar remuneration in fields such as IT software development, construction, agriculture, and the food industry will no longer qualify for the income tax exemption or the reduced pension contribution rate of 20.25% (previously reduced by 4.75% from the standard 25%).
For gross monthly incomes up to RON 10,000, employees may opt, in writing, to have the full 25% pension contribution withheld by the employer, including the 4.75% allocated to the privately managed pension fund. Employers will then be responsible for deducting the complete pension contribution.
6. Support for low-income employees with the minimum wage
For employees with minimum wages, 2025 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.
7. Increase of the Minimum Wage in Agriculture, Food Industry and Construction Field
Starting January 1, 2025, the minimum wage in agriculture and the food industry will increase to RON 4,050, while the minimum wage in the construction sector will remain at RON 4,582. As a result, employees in the construction industry will no longer benefit from tax exemptions, such as income tax exemption and the 4.75% reduction in pension contributions for salaries up to RON 10,000.
Brief Overview on the Taxes Paid by Companies in Romania in 2025
In Romania, company taxes in 2025 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%/3% Income Tax or Revenue Tax
Romania offers two turnover tax rates: 1% and 3%, each with specific eligibility requirements.
-
1% Tax on Turnover: This applies to companies with an annual turnover of up to EUR 60,000, excluding certain industries like IT, hospitality, and medical services. If your business falls into these sectors, you’ll need to opt for the 3% rate instead.
-
3% Tax on Turnover: This rate applies to companies with a turnover between EUR 60,000 and EUR 250,000.
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 810 per month), with payroll taxes around EUR 310 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): 19% Standard Rate or 9%/5% Reduced Rates
The standard VAT rate in Romania is 19%, with reduced rates applicable to specific goods and services. If your company’s turnover exceeds EUR 60,000 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: 10% 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 2025 in Romania: The Year of Adaptation and Planning
In 2025, 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.
Der Blog des rumänischen Anwalts
Die Anwalts-Ecke ist nichts anderes als ein juristischer Blog mit Nachrichten und Updates zur rumänischen Gesetzgebung, der sich ausschließlich an Unternehmer und Investoren in Rumänien richtet. Alles, was Sie als Ausländer über die Gründung eines Unternehmens in Rumänien wissen müssen, die Unternehmensregistrierung in Rumänien, die Gründung eines Unternehmens in Rumänien, die Firmengründung in Rumänien, die Eröffnung eines Unternehmens in Rumänien.
Wöchentliche nützliche Beiträge, Nachrichten und Updates zu den ersten Schritten von Investoren in Rumänien, aus der Perspektive des praktizierenden Wirtschaftsrechts, der Betreuung der Bedürfnisse unserer Mandanten und sogar der Prozessführung, geschrieben und veröffentlicht von einem rumänischen Wirtschafts und Prozessanwalt mit über 15 Jahren Erfahrung.
Romanian Advocacy
| Ihr Unternehmen | Unsere Mission |
Romanian Advocacy
| Ihr Unternehmen | Unsere Mission |
Romanian Advocacy
| Ihr Unternehmen | Unsere Mission |
Vollständige Reihe von Rechtsdienstleistungen für Unternehmen, Gesellschaften und Einzelpersonen. Ihre Anwälte in Rumänien.
Besuchen Sie uns in unserem Hauptsitz:
Romanian Advocacy
4 Știrbei Vodă Str., Eingang D, Wohnung 127, 010111, Bukarest, Rumänien
tudor@roadvocacy.ro
+40 723 773 759