Romania - Republic of Romania

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Business Environment

Business Practices

General information: Worldwide-tax, Guide to Doing Business in Romania
Kwintessential , guide on doing business in Romania
Opening hours and days: Offices are open Monday through Friday from 9am to 6pm
Banks are open Monday through Friday from 9am to 1pm
Stores are open Monday through Friday from 9am to 6pm
During the summer, some businesses have reduced staff, opening hours, and/or are closed during the month of August.

Public holidays

New Year's Day	January 1
Saint Sylvester's Day	January 2
Orthodox Easter	the last Monday in April
May Day	May 1
Christmas	December 25

Periods when companies usually close

New Year's Day and the following workday	January 1 and 2
Orthodox Easter	April/May Duration 3 days (Sunday and Easter Monday are vacation days; Tuesday is apart of the religious celebrations but it is not a national holiday)
Labor Day	May 1
National Day	December 1
Christmas	December 25 and 26

Accounting Rules

Tax year: The fiscal year begins on January 1 and ends on December 31.
Accounting standards: 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: 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. There are very 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.
Accounting news: Association of Bucharest Accountants.
European Accounting Journal

Tax Rates

Consumption taxes

Nature of the tax: Value Added Tax (VAT)
Tax rate: 19%
Reduced tax rate: 9% on medicines, books, newspapers, hotel rooms, cinema tickets, admission to museums, zoos, fairs and exhibitions ... Some activities (export, health, science, education, charity, finance, insurance) are exempt from VAT.
Other consumption taxes: An excise tax is levied on luxury goods. For more information on VAT rates according to the type of product, you can see the comparative table of VAT rates throughout the EU (January 2009, in PDF).

For more information on excise duties, you can see the comparative table of excise duty in the EU (January 2005, in PDF):

- Part 1 - Alcohols and spirits

- Part 2 - Energy producing and electrical products

- Part 3 - Tobacco

Corporate taxes

Company tax: 16%
Capital gains taxation: Profits and taxed at the general tax rate of 16%.
Main allowable deductions and tax credit: There are a certain number of possible deductions available with corporation taxes on condition that they are were 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: Land tax (between 0,25 % and 1,5 % on the real estate value)

Individual taxes

Tax rate

Individual income tax

Flat rate of 16%

Allowable deductions and tax credit: There exist several tax deductions.
Special expatriate tax regime: 16%

Double taxation treaties

Countries with whom a double taxation treaty have been signed: List of tax treaties signed by Romania.
Whithholding taxes: Dividends: 16%, Interest: 16%, Royalties: 16%

Sources of fiscal information

Tax Authorities: Romanian Ministry of Economy and Finance
Other domestic resources: Tax system of the country by KMPG
Tax system of the country by Ernst & Young (PDF)

Intellectual Property

National organizations: The Office for Inventions and Trademarks (Oficiul de Stat pentru Inventii si Marci) is the government agency responsible for the registration and protection of patents, trademarks and industrial designs.

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

Type of property and law	Validity	International agreements signed
Patent Patent Law No. 64/1991	validity period of 20 years	Patent Cooperation Treaty (PCT) Strasbourg agreement concerning the International Patent Classification
Trademark Law No. 84/1998 on trademarks and geographical indications	Validity period of 10 years	Trademark law treaty Nice agreement Protocol relating to the Madrid Agreement
Design Law on Design No. 49/1992 (Design Law)	5 years renewable
Industrial Models Law on Design No. 49/1992 (Design Law)

Legal Framework

Independence of justice: The judiciary is not completely independent in Romania. It is very influenced by the institutions of the executive branch of power.
Equal treatment of nationals and foreigners: Foreign nationals can not 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 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

Standards

National standards organizations: Standards Association of Romania
Integration in the international standards network: The Romanian Institute for Standardization (Institut Roman de Standarizare) is the organization responsible for issuing certificates of standardization.
Its goal is to harmonize Romanian standards with the standards of the European Union.
Certification organizations

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