Romania
Corporate Tax Guide
Time of Update: 4/04/2026
Romania has a general corporate income tax rate of 16%, with capital gains being subject to the same rate. Quarterly installments of CIT are due on the 25th of the first month after each quarter, while the final payment is typically due on the 25th of the third month after the end of the fiscal year. For companies with a fiscal year different from the calendar year, the annual CIT declaration form is due on the 25th day of the third month after the end of the fiscal year. The general VAT rate is 19%, and non-residents are subject to a withholding tax of 8% on dividends and 16% on interest and royalties, while residents are subject to a withholding tax of 8% on dividends.
Romania Corporate Income Tax (CIT)
General CIT Rate:
16
CIT Return Due Date:
If the accounting year is equal to the calendar year, the annual CIT declaration form should be due by March 25 of the following year; for cases where the accounting year is different from the calendar year, the annual CIT declaration form should be due on the 25th day of the third month after the end of the company's accounting year. Quarterly CIT declaration forms should be submitted by the 25th day of the next month for the first, second, and third quarters. For the period from 2021 to 2025, the deadline for submitting the annual CIT declaration form is June 25 of the following year, or the 25th day of the sixth month after the revised fiscal year end.
CIT Payment Due Date:
The final payment of CIT is usually due on the 25th of the third month after the end of the company's fiscal year. During the period from 2021 to 2025, the final CIT should be due by June 25 of the following year or by the 25th of the sixth month after the revised fiscal year end.
CIT Estimated Payment Due Date:
Quarterly installments should be paid by the 25th of the first month after the first, second, and third quarters.
Romania Withholding Tax (WHT)
Resident Withholding Tax (Dividend/Interest/Royalty):
8/NA/NA
None-Resident Withholding Tax (Dividend/Interest/Royalty):
8/16/16
Romania Value-Added Tax (VAT)
General VAT Rate:
19
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Romania Capital Gain Tax (CGT)
General Capital Gain Tax Rate:
Capital gains are constrained by the normal corporate income tax rate.
Romania Effective Tax Rate (ETR)
Composite Effective Average Tax Rate:
14.41%
Composite Effective Marginal Tax Rate:
6.41%
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TKEG Expat ™ (EU) Romania Corporate Tax Guide
1.
Romania Value-added tax (VAT)
In Romania, the standard VAT rate is set at 19%. This VAT is applied on all supplies of goods and services, including imports unless they qualify for an exemption. A reduced VAT rate of 9% is applicable to essential goods such as medicines, food items, seeds, and housing for social policy purposes. An even lower VAT rate of 5% is applied to educational books, newspapers, and services linked to historical and cultural attractions. VAT exemptions exist for certain medical, financial, and insurance services.
2.
Romania Corporate income tax (CIT)
Corporate income tax in Romania is levied at a headline rate of 16%. CIT returns are due annually by March 25th following the fiscal year. Quarterly returns are due by the 25th of the month following the first, second, and third quarters. For companies with a different fiscal year, their CIT return deadlines differ accordingly. Additionally, advance tax payments are required quarterly.
3.
Romania Personal income tax (PIT)
Personal income tax in Romania is levied at a headline rate of 10%. Taxpayers must submit their PIT return by May 25th for income earned in the previous year. This applies to both residents and non-residents earning income from Romanian sources. Final payments for personal income taxes are due on the same date.
4.
Romania Property Taxes
Romania imposes two main types of property taxes: building tax and land tax. Building tax rates vary between 0.08% to 1.3% depending on whether the property is residential or non-residential. Land tax is assessed based on the square meter area and land classification. Both taxes are paid annually in two installments, on March 31st and September 30th, with a potential reduction for early payments.
5.
Romania Withholding tax (WHT)
Withholding tax in Romania is imposed on dividends, interest, and royalties at varying rates depending on residency. For residents, the WHT on dividends is set at 8%, while non-residents may face rates of 16% for interest and royalties, though these rates can be reduced if international agreements like the Parent-Subsidiary Directive apply. Dividends can benefit from a 0% rate if the receiving company holds at least 10% of the shares in the distributing company for over a year.
