Tax authorities
Ministry of Finance
17 Apolodor Street, Bucharest 5, Romania
Tel: +40 21 319 97 59
Fax: +40 21 31 9 9752
Website: www.mfinante.ro
Tax rates at a glance
(As of August 31 2009 – legislation applicable as of January 1 2010)
| Corporate income tax rate |
16% (a) |
| Capital gains tax rate |
16%/1% (b) |
| Branch tax rate |
16% |
Withholding tax |
|
| Dividends |
0%/10%/16% (c) |
| Interest |
10%/16% (d) |
| Royalties from patents and licences |
10%/16% (d) |
| Branch remittance tax |
Nil |
Net operating losses (years) |
|
| Carryback |
Not allowed |
| Carryforward |
7 years (e) |
(a) the corporate income tax liability cannot be lower than a certain minimum amount (concept introduced from May 1 2009) ranging between about ?500 ($716) and ?10,000 ($14,300), depending on the level of the total income realised during previous year.
(b) capital gains obtained by corporate entities are included in their regular profits subject to corporate income tax at 16%; a reduced rate of 1% applies only on capital gains obtained by individuals from trading securities on regulated markets, provided a minimum holding period of 365 days, otherwise the 16% rate applies.
(c) the 0% rate applies for payments qualifying under the conditions of the EU Parent-Subsidiary Directive for EU tax resident legal entities, for all EFTA tax resident legal entities, and for Romanian companies; the 10% rate applies for payments between two resident companies or between a Romanian resident legal entity and all EFTA tax resident legal entities; the 16% applies for payments to all other non-residents.
(d) the 10% rate applies until December 31 2010 for payments qualifying under the EC Interest & Royalties Directive for EU and for all EFTA tax resident legal entities (from January 1 2011 such payments are to be exempt).
(e) the 7-year period applies starting with the loss related to fiscal year 2009 (losses incurred before 2009 can only be carried forward for 5 years).
Source: Professionals from TaxHouse, the Romanian member of the Taxand global network of leading independent tax firms.