Several laws are 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, Order No. 3055/2009, Orders No .1286/2012 and No. 881/2012 on the Application of the IFRS
- 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
- The National Bank of Romania : Order 27/2010 on the Application of the IFRS
All domestic companies whose securities trade in a regulated market are required to use IFRS standards as adopted by the EU in their consolidated financial statements.
In case of listings by foreign companies, IFRS Standards are required in the consolidated financial statements, but if the standards of the foreign company's home jurisdiction are deemed by the EU to be equivalent to IFRS Standards, the company may use its home standards.
IFRS Standards as adopted by the EU are required for all credit institutions (National Bank of Romania Order no. 27/2010) and all insurance companies (CSA Bulletin no. 202/2012), including those whose securities do not trade in public markets.
The results give emphasis to the overall production and classifies expenses by type.
SMEs have to prepare a simplified balance sheet, income statement and notes explaining the details of the financial report.
Companies which have exceeded the criteria included in law no. 1752/2005 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).
The parent company is exempt from consolidating financial reports if, on the date of the financial statement, the entities that must be consolidated do not exceed two of the three following criteria:
- Total balance: EUR 17,250,000
- Sales figures: EUR 35,040,000
- Average number of employees during the accounting year: 250
5% for books, newspapers, magazines and school manuals (except those intended exclusively for publicity); hotel accommodation and similar accommodation, including the rental of land for camping; restaurant and catering services (excluding alcohol, except for draught beer); access to museums, castles, cinemas, zoological and botanical gardens, amusement and recreational parks and sporting events; the right to use sport facilities; the passenger transport by trains or historical vehicles with steam powered on narrow lines for touristic or entertaining purposes; the passenger transport using transport installations on cable; the passenger transport using vehicles with animal traction, used for touristic or entertaining purposes; the passenger transport by boats for touristic or entertainment purposes; delivery of high-quality food, respectively, mountain products, eco, traditional, authorized by the Ministry of Agriculture and Rural Development; supply of social housing.
Intra-community supplies of goods and export of goods, as well as transport services and international transport of passengers are zero-rated.
Exemptions include specific banking and financial operations; insurance and reinsurance; medical services; education; specific hiring, concession leasing or letting of immovable property; sale of "old" buildings; re-imports of Romanian goods repaired abroad; imports of natural gas through specific distribution systems and electricity; etc.
Representative offices of foreign businesses are subject to a fixed tax of RON 18,000 for each fiscal year.
Other expenses can be deducted only up to certain specific limits:
Start-up expenses may be capitalised and depreciated over a maximum period of five years, but cannot be depreciated for tax purposes.
Certain R&D expenses give rise to an extra 50% deduction. Furthermore, machinery and equipment used in R&D activities is subject to accelerated depreciation.
Companies can carry forward fiscal losses declared in the annual profit tax returns for a period of a maximum of seven years (no inflation adjustment is allowed). Carryback of losses is not permitted.
For certain activities (e.g. dangerous hazardous substances, activities that generate polluting emissions, etc.), companies have the obligation to declare and to pay (as the case may be) related contributions and taxes to the Environmental Fund. Several environmental taxes apply (packaging and packaging waste management; plastic bags; sale of wast; industrial oil; air emission; electric and electronic equipment; batteries and accumulators; etc.).
Entities in the tourism, hotel, restaurants, bars, and catering sector pay a specific tax, regardless of the size of the turnover and the level of profits. The tax is calculated according to the area of the business, the location and other criteria.
|Eastern Europe & Central Asia
|Number of Payments of Taxes per Year
|Time Taken For Administrative Formalities (Hours)
|Total Share of Taxes (% of Profit)
Source: Doing Business - Latest available data.
|Individual income tax
|Flat rate of 10%
For the salary income obtained in other cases, taxable income is computed as the difference between the gross salary income and the individual mandatory social contributions.
Individual taxpayers may direct up to 3.5% of their annual income tax to charitable purposes.
An individual is resident in Romania if he/she fulfils at least one of the following conditions: is domiciled in Romania; is present in Romania for a period or periods that exceed 183 days in any 12 consecutive months interval ending in the calendar year concerned; is a Romanian citizen working abroad as a civil servant or as an employee of the Romanian state; or has the centre of vital interests in the country.
|Type of property and law
|International Agreements Signed
Patent Law No. 64/1991
|validity period of 20 years
Patent Cooperation Treaty (PCT)
Law No. 84/1998 on trademarks and geographical indications
|Validity period of 10 years
Trademark Law Treaty
Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks
Law on Design No. 49/1992 (Design Law)
|5 years renewable
Law No. 8 of March 14, 1996 on Copyright and Neighboring Rights (amended in 2006)
Berne convention For the Protection of Literary and Artistic Works
Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms
Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations
WIPO Copyright Treaty
WIPO Performances and Phonograms Treaty
Law on Design No. 49/1992 (Design Law)
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
|New Year's Day and the following workday
|1 and 2 January
|April/May - 3 days (Sunday and Easter Monday are vacation days; Tuesday is a part of the religious celebration, but it is not a national holiday)
|25 and 26 December
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Latest Update: December 2023