Tax
A 10% income tax with a contested micro-enterprise regime
Personal income tax is a flat 10%, corporate tax 16%, and standard VAT rose to 21% in August 2025. The micro-enterprise regime taxes turnover instead of profit and has been progressively narrowed by turnover ceilings and activity exclusions.
Key rules
- Personal income tax is 10% on most categories of income.
- Corporate income tax is 16% of profit.
- Standard VAT is 21%, with reduced rates for a defined list of supplies.
- The micro-enterprise turnover regime is limited by an annual revenue ceiling and excluded sectors.
Governing law
- Law No. 227/2015 on the Fiscal Code (2015)
- Law No. 207/2015 on the Code of Fiscal Procedure (2015)
- Law No. 141/2025 on fiscal-budgetary measures (2025)VAT and levy changes.
In practice
RO e-Factura is now mandatory for business-to-business invoicing, and an invoice not reported through the system can be denied deduction entirely rather than merely fined.