In this page:
Accounting Rules |
Tax Rates |
Intellectual Property |
Legal Framework |
- Tax Year
The fiscal year begins on January 1 and ends on December 31. A system of quarterly payments in advance taking into consideration the corporation tax calculated for the previous year is applied for companies.
- Accounting Standards
Romanian accounting standards follow the Fourth and Seventh EC directives. IFRS also is accepted as a second set of financial statements, but only for certain companies.
Several laws governing accounting principles and standards in Romania:
- The Ministry of Economy and Finance: Order No. 907/2005; Order No. 1752/2005; Order No. 1121/2006; Order No. 2001/2006
- National Ethics Code for the accounting profession
- Regulation No. 1606/2002 by the European Parliament assembly of 19 June 2002 on the Application of International Accounting Standards
- Accounting Regulation Bodies
Institute of Chartered Accountants of Romania
- Accounting Reports
Bookkeeping records are divided into credit and debt, the latter being broken up into long-term and short-term debts.
The results give emphasis to the overall production and classifies expenses by type.
- Publication Requirements
Romanian businesses are asked as well as foreign companies with corporate names registered in Romania, to organize and conduct their own accounts including the preparation of annual as well as periodic financial reports. The Romanian Ministry of Public Finance's law No. 1752/2005 stipulates that all companies preparing simplified financial statements(simplified balance sheet, income statement and notes which explain the details of the financial report) and that only companies which have exceed the following criteria over two consecutive years or more must prepare a comprehensive annual financial report (balance chart, income statement, account statements, changes in shareholders, explanatory notes to accompany the financial report):
- Total balance: 3,650,000 EUR
- Net annual sales figures: 7,300,000 EUR
- Average number of employees during the accounting year: 50
The parent company is exempt from consolidating financial reports, if on the date of the financial statement, the entities which must be consolidated do not exceed two of the three following criteria:
- Total balance: 17,250,000 EUR
- Sales figures: 35,040,000 EUR
- Average number of employees during the accounting year: 250
- Professional Accountancy Bodies
CECCAR , Institute of Chartered Accountants of Romania
- Certification and Auditing
The audits must be conducted by financial auditors, who are legal persons or entities authorized by the Romanian Chamber of Financial Auditors. They must be conducted under the Standards of Auditing adopted by the Romanian Chamber of Financial Auditors, similar to international auditing standards. Few cases of exemption from audit requirements are subject to the audit carried out by financial censors:
- The annual financial reports prepared by businesses under the OMF law 1752/2005
- The annual financial reports prepared by insurance and reinsurance brokers who on the balance sheets do not exceed the limit of two of the criteria mentioned in the OMF law 1752/2005.
You can contact an external auditor: KPMG, Deloitte, Ernst & Young and PricewaterhouseCoopers.
- Accounting News
Association of Bucharest Accountants (in Romanian)
European Accounting Journal
- Nature of the Tax
Value Added Tax (VAT) - Taxa pe valoarea adaugata (Local Name)
- Tax Rate
- Reduced Tax Rate
9% on medicines, books, newspapers, hotel rooms, cinema tickets, admission to museums, zoos, fairs and exhibitions; 5% for the supply of buildings.
Are exempt specific banking and financial operations, insurance and reinsurance, medical services, education, specific hiring, concession leasing or letting of immovable property, Sale of “old” buildings, Intra-Community supplies of goods, Exports of goods.
- Other Consumption Taxes
An excise tax is levied on luxury goods. For more information on VAT rates according to the type of product, see the comparative table of VAT rates throughout the EU (January 2009, in PDF). For more information on excise duties, see the comparative table of excise duty in the EU on Alcohols and spirits; Energy producing and electrical products; Tobacco.
Learn more about Service Providers in Romania on Globaltrade.net, the Directory for International Trade Service Providers.
- Company Tax
- Capital Gains Taxation
Capital gains are generally included as income and taxed at the normal corporate rate.
- Main Allowable Deductions and Tax Credits
There are a certain number of possible deductions available in corporation taxes on condition that they are required to generate a taxable income (expense such as business advertising and promotion, environmental protection expenses, improving technological systems, management or maintenance services, and travel within Romania related to business...)
- Other Corporate Taxes
Real property tax, social security, environmental tax.
- Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
Country Comparison For Corporate Taxation
||Eastern Europe & Central Asia
|Number of Payments of Taxes per Year
|Time Taken For Administrative Formalities (Hours)
|Total Share of Taxes (% of Profit)
- Last Available Data.
|Individual income tax
||Flat rate of 16%
- Allowable Deductions and Tax Credits
There are certain allowances for children and personal deductions or taxable persons having dependents.
- Special Expatriate Tax Regime
Learn more about Taxes and Accounting in Romania on Globaltrade.net, the Directory for International Trade Service Providers.
- National Organizations
The Oficiul de Stat pentru Inventii si Marci (Office for Inventions and Trademarks) is the government agency that is responsible for the registration and protection of patents, trademarks and industrial designs. The Romanian Office for Copyright (ORDA) is the government agency that is responsible for the registration and protection of copyrights.
Romania signed the Paris Convention concerning the Protection of Industrial Property and the Convention that establishes the World Intellectual Property Organization (WIPO). Regarding patents, it ratified the Munich Convention on the European patent of 1973 (EPC). It signed the Madrid Convention on the Registry of International Trademarks.
- International Membership
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)
National Regulation and International Agreements
- Independence of Justice
The judiciary is not completely independent in Romania. It is heavily influenced by the executive branch institutions of power.
- Equal Treatment of Nationals and Foreigners
Foreign nationals cannot expect an impartial trial by the judicial system.
- The Language of Justice
The judicial language used in the country is Romanian.
- Recourse to an Interpreter
It is possible to be assisted by an interpreter.
- Sources of the Law and Legal Similarities
The main source of the laws of the country is the constitution of 1991 (revised 2003). The judicial system is based on the French Civil Code (Code Napoleon).
- Checking National Laws Online
Law on electronic commerce in Romania
Learn more about Lawyers and Legal in Romania on Globaltrade.net, the Directory for International Trade Service Providers.
- General Information
Worldwide-tax, Guide to Doing Business in Romania
Kwintessential , guide on doing business in Romania
- Opening Hours and Days
Offices are open on Monday through Friday from 9am to 6pm
Banks are open on Monday through Friday from 9am to 1pm
Stores are open on Monday through Friday from 9am to 6pm
During the summer, some businesses will reduce staff, opening hours, and/or are closed during the month of August.
|New Year's Day
|Saint Sylvester's Day
||the last Monday in April
Periods When Companies Usually Close
|New Year's Day and the following workday
||January 1 and 2
||April/May Duration 3 days (Sunday and Easter Monday are vacation days; Tuesday is a part of the religious celebrations but it is not a national holiday)
||December 25 and 26
© Export Entreprises SA, All Rights Reserved.
Last Updates: December 2014