Romania Corporate Tax Guide 2026

Overview — Corporate Taxation in Romania

Corporate income tax in Romania is governed by the Fiscal Code (Codul Fiscal) and administered by ANAF. Companies resident in Romania are taxed on worldwide income. A company is resident if it is incorporated in Romania or has its effective place of management in Romania. The standard CIT rate of 16% has been in place since 2005 (reduced from 25%). The tax year is the calendar year (1 January to 31 December). Companies must file annual CIT returns (Declarația 101) by 25 March of the following year.

Standard CIT Rate — 16%

The standard corporate income tax rate is 16% of taxable profit. This applies to all Romanian legal entities (SA, SRL, SCA, etc.) that are not eligible for or have opted out of the micro-enterprise regime. Taxable profit is calculated as accounting profit adjusted for tax purposes — including non-deductible expenses, tax-exempt income, and tax allowances. At 16%, Romania's rate is competitive within the EU, below the current EU average of approximately 21%.

Micro-Enterprise Regime — 1% or 3%

Romania offers a highly advantageous micro-enterprise (microîntreprindere) tax regime for small businesses meeting specific conditions:

• Revenue threshold: Annual turnover less than EUR 500,000 (approximately RON 2,500,000)
• Employees: At least one employee (for the 1% rate)
• Shareholders: Must be individuals, not legal entities (with exceptions)
• Rate 1%: For micro-enterprises with at least one employee
• Rate 3%: For micro-enterprises without employees

The micro-enterprise tax is calculated on gross revenue (not profit), making it particularly attractive for service businesses with high margins. Companies earning more than 20% of revenue from consulting, management, or certain specified services face the 3% rate. The regime has been a major driver of small business formation in Romania.

Dividend Taxation — 10%

Dividends distributed by Romanian companies are subject to a 10% withholding tax (impozit pe dividende). This applies to both individual and corporate shareholders. Romanian corporate shareholders receiving dividends from other Romanian companies may benefit from participation exemption (non-taxation) if they hold at least 10% of shares for at least one year. Dividends paid to EU/EEA parent companies are generally exempt under the EU Parent-Subsidiary Directive.

Tax Incentives

Romania offers several tax incentives for businesses:

• R&D tax credit: Additional deduction of 50% of eligible R&D expenses from taxable income (effectively 150% deduction)
• Accelerated depreciation: Available for certain assets including technological equipment and computers
• Profit reinvestment exemption: Exemption from CIT on profits reinvested in production equipment (subject to conditions)
• Tax holiday: Exemption from CIT for 10 years for qualifying investments of at least EUR 1 million in certain sectors
• IT sector exemption: Exemption from income tax and social contributions for IT employees (subject to conditions)

FAQs

What are the conditions for the micro-enterprise regime?

To qualify as a micro-enterprise, a company must have annual revenue below EUR 500,000, at least one employee (for the 1% rate), shareholders who are individuals, and not be in certain excluded sectors (banking, insurance, gambling, etc.). The tax is 1% of revenue (or 3% if certain conditions apply).

How are foreign companies taxed in Romania?

Non-resident companies are taxed on Romanian-source income only. A permanent establishment (PE) in Romania is taxed at the standard 16% rate on profits attributable to the PE. Withholding taxes apply to certain payments (dividends 10%, interest 16%, royalties 16%) unless reduced by a tax treaty.

What is the deadline for corporate tax returns?

The annual CIT return (Declarația 101) is due by 25 March of the following year. Quarterly advance payments are required during the year. For micro-enterprises, the tax return (Declarația 100) is filed quarterly by the 25th of the following month.

Disclaimer

This guide provides general information about Romanian corporate income tax for 2026. Tax laws and rates may change. Always consult with a qualified Romanian tax advisor (consilier fiscal) or ANAF directly for advice specific to your situation. InvestmentKit does not provide tax advice.