Investors seeking to establish their business in Romania should know that in Cluj-Napoca, Transylvania`s largest city, they are offered tax and accounting services of the highest quality and, most importantly, in their own language. Providing audit, advisory and accounting services addressing the needs of foreign investors doing business in Cluj and Romania, Contafiscal Group stands out from similar companies on the market as it invests in cutting-edge technology and delivers services using dedicated customer – requested software such as SAP, ERP, SAGE or Winmentor, with great attention to detail and a competent team of highly qualified and multilingual employees (fluent in German, English, Italian, Romanian), in a multicultural city.
What do you need to know before starting a business in Romania? The first thing one should find out is the minimum share capital required to set up a limited liability company (Ltd) [in Romanian: societate cu răspundere limitată – SRL], namely how much the shareholder decide, also 1 Euro acceptable.
The second question most frequently asked by those who are interested in Romanian economy regards taxation.
One of the most important changes under the new Tax Code is regarding the VAT percentage. General VAT is 19% with some exceptions as: 9% VAT rate applies to medicinal products, hotel accommodation, food, restaurants, agricultural products and services, drinks with high sugar content and catering services and 5% only one apartment with price not more than 600.000 Lei, depending on other conditions too..
As for micro-enterprises (companies whose taxable earnings amounted to less than 500,000 EUR at the end of the preceding financial year, with consulting and management services accounting for less than 20% of total revenue) and at least one full time employee, their income is currently taxed with 1% on the turn over.
There is also a series of profit tax incentives. For example, tax relief is provided for any profit reinvested in computers and invoicing equipment. Moreover, social charges may be deducted up to 5% of salary costs).
The new Tax Code sets forth a dividend tax exemption which may be claimed if the person who receives the dividend has held more than 10% of the share capital of the affiliated company for over one year. As of 1 January 2023, the tax on dividends were set at 8%.
All other taxes are at the flat rate of 16% (income tax, salary tax, profit tax for companies with turnover over 500.000 Euro)
Furthermore, foreign investors will have more business development opportunities as they can access EU funds or apply for national funding under IT technology purchase programs.
Services provided by Contafiscal Steuerberatung SRL in German, English, Italian, and Romanian:
Financial audit
Tax advisory
Insolvency/liquidation
Accounting
Employee record-keeping and payroll accounting
Financial analysis
Business valuation
