How corporate tax works in Romania
Romanian resident companies are generally taxed on worldwide profits, while non-residents can be taxed through a Romanian permanent establishment or Romanian-source withholding rules. The standard corporate income-tax rate is 16% of taxable profit.
From 2026, an eligible Romanian legal person can opt for the micro-enterprise regime at 1% of the statutory tax base, normally linked to revenue rather than profit. The main entry conditions include revenue of no more than EUR 100,000, at least one employee or an allowed equivalent, Romanian ownership conditions and related-company aggregation rules.
A company can move from micro taxation to profit tax when it exceeds the threshold or loses another condition. Dividends distributed from 2026 are generally subject to 16% withholding, while VAT is charged at 21% standard and 11% reduced rates after the 2025 fiscal changes.
Tax rates at a glance
- Standard corporate income tax
- 16%Taxable profit
- Eligible micro-enterprise tax
- 1%
- Micro-enterprise revenue threshold
- EUR 100,000
- Dividend withholding tax
- 16%
- VAT
- 21% / 11%
- Employer work-insurance contribution
- 2.25%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersSaaS businessesRegional operatorsTechnology companiesEU service companies
Watch out for
- The 1% micro rate is not a universal small-business rate. The EUR 100,000 threshold is tested with linked enterprises, and the company must satisfy employee, ownership, filing and activity exclusions.
- A revenue tax can be worse than 16% profit tax for a low-margin business. Compare the tax base, payroll, VAT, dividends and deductible costs rather than choosing the lowest percentage.
- A Romanian company managed from another country can create residence, permanent-establishment or place-of-effective-management issues. A Romanian registration alone does not settle the cross-border analysis.
- The 16% dividend rate applies to dividends distributed from 1 January 2026. Dividends distributed under 2025 interim financial statements have a specific transitional 10% rule.
Frequently asked questions
What is Romania's corporate-tax rate?
The standard corporate income-tax rate is 16% on taxable profit. Eligible micro-enterprises can use a separate 1% revenue-tax regime in 2026 if all conditions are met.
What is the Romanian micro-company threshold in 2026?
The headline revenue threshold is EUR 100,000, tested under the linked-enterprise rules and alongside the other eligibility requirements.
Is Romania good for a small company?
It can be, especially for an eligible profitable company with EU operations, but payroll, VAT, accounting, dividend tax and the revenue-based micro regime need to be modelled together.