1. Pay tax after profit
+ VAT-payer
profit tax = 16%
2. Pay tax after profit + VAT-free
3. Pay tax after Income + VAT-payer Income Tax 3%
4. Pay tax after Income + VAT-free
VAT 24%
Dividend tax = 16%
The VAT/sales tax is 19%. You can
issue a VAT free invoice to any European Union country as long as they
have a European Union tax number. It takes about 3 days to obtain a
European Union tax number.
Only companies that are VAT-payers can have European Union tax numbers.
If you are a VAT-payer company and you made some purchases from another
VAT-payer company abroad, you will receive a net invoice. This is true
vice versa. You can issue a net invoice if someone from another
VAT-payer foreign company buys something from you.
If you are not a VAT-payer company and you make a purchase from a
foreign VAT-payer company, you will receive a VAT invoice (i.e. an
invoice that includes the sales tax). If they purchase something from
you, you would issue a net invoice (one that does not include the sales
tax). Create romanian LTD, company formation Romania
You have to pay the taxes quarterly, in the local currency (Romanian
lej). Your bank here will handle your Romanian currency account as well
as your forint, dollar and euro accounts if you need those. Online
banking is available. VAT payments can be made monthly or quarterly.
Your profit or income tax can be paid monthly, quarterly or annually.
You can deduct company car expenses.
Starting in 2010, Romania will employ a 500 Euros minimum tax. If you
own a company here, you will have to pay this tax even if you had no
income or if you operated with a loss. If you did have income and your
taxes exceed 500 Euros, then you will pay that amount.
If you chose the VAT-free business form when you set up your company,
you can still change your mind and your company can still become
VAT-payer, but the reverse is not possible.
All invoices must be written in Romanian. Our accountants will help you
with this.
To pay tax after profit means that you have to pay 16% on pure profit
after all expenses have been deducted.
If you own an Ltd. that pays tax on income, you cannot deduct any
expenses. You'll have to pay 3% on your total income, regardless your
expenses.
Romania have signed a treaty to evade double taxation with the
following states. You can view the list here. Company for sale in Romania