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Legal and Accounting Services in Romania

Romania

Legal and Accounting Services in Romania

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Romania Legalities

The legal framework in Romania is inadequate in a number of areas and often one piece of legislation conflicts with another.

Tax and customs considerations

The UK and Romania have signed a double taxation convention.

Value Added Tax ( VAT)

The VAT rate is 24%.

A lower rate of 9% VAT is applied to:

  • Pharmaceuticals
  • Books
  • Newspapers
  • Museum fees
  • Hotels
  • Camping services
  • Bread and pastry products

There are also taxes on land, means of transport, the use of public places, advertising and promotion, and construction certificates.


Excise duties

Excise duties are levied on specific products including:

  • Alcoholic beverages
  • Tobacco products
  • Perfumes
  • Coffee

Rates vary between 1% and 50% and are applied before levying VAT.

The excise rates for cigarettes and alcohol are applied to maximum retail price.

Romania Corporate tax

Romania applies corporate income tax at 16%.

Income tax

Income is taxed at a flat rate of 16%, to which is added, as a percentage of gross income:

  • 0.5% unemployment tax
  • 10.5% tax for social security contributions
  • 5.5% tax for health insurance

 

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