1. Pay tax after profit
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
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
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