How Romanian Income Tax Works — Impozit pe Venit
Romania uses a flat 10% income tax — one of the EU's lowest rates. However, total deductions are larger because CAS (25% pension) and CASS (10% health) are taken out first. For salaried employees, CAS and CASS apply to the full gross with no annual ceiling. For self-employed PFA, both contributions are capped (CAS max 19,800 lei/year; CASS max 19,800 lei/year, based on 3,300 lei minimum wage). Companies (SRL) under €500,000 revenue with at least one employee pay a 1% microîntreprindere tax on total revenue instead of 16% profit tax.
| Component | Rate | Base / Cap |
|---|---|---|
| CAS — employees | 25% | Full gross salary — no ceiling |
| CAS — PFA | 25% | Net income; no obligation below 39,600 lei; capped at 79,200 lei (max contribution 19,800 lei) |
| CASS — employees | 10% | Full gross salary — no ceiling |
| CASS — PFA | 10% | Net income; min 1,980 lei/yr; capped at 198,000 lei base (max contribution 19,800 lei) |
| Impozit pe venit | 10% | Gross minus CAS and CASS (both deductible from 2024) |
| Microîntreprindere | 1% | Total revenue (SRL under €500k with ≥1 employee) |
| Standard corp. profit tax | 16% | Net profit |
- →Employee take-home: roughly 58–60% of gross once CAS (25%) + CASS (10%) + income tax (10%) are all deducted
- →PFA CAS: mandatory only if annual net income ≥ 39,600 lei (12 × 3,300); max contribution 19,800 lei (25% × 79,200 lei)
- →PFA CASS: minimum 1,980 lei/year even at low or zero income; maximum 19,800 lei/year (10% × 198,000 lei)
- →Minimum wage 2024: 3,300 lei/month (Jan–Jun), 3,700 lei/month (Jul–Dec) — the 3,300 value sets the PFA contribution caps for fiscal year 2024
- →IT sector income tax exemption: applied in 2024 for gross salary up to 10,000 lei/month — fully abolished from January 2025
- →SRL dividends: 8% dividend tax + CASS 10% applies on the amount distributed to shareholders
- →File and pay via anaf.ro — employees via D112 monthly; PFA via D212 (declarație unică) by May 25 annually
Frequently Asked Questions
What is the difference between PFA and SRL in Romania?
A PFA (Persoană Fizică Autorizată) is a sole trader — you register as an individual and pay CAS 25% + CASS 10% on net income (with annual caps based on minimum wage), then 10% income tax on the remainder. Setup is simple but you are personally liable for debts. An SRL (Societate cu Răspundere Limitată) is a limited company with capped personal liability. Revenue under €500,000 with at least one employee qualifies for the 1% microîntreprindere tax on turnover. Distributing profits as dividends attracts an additional 8% dividend tax + CASS 10%. SRL typically becomes more tax-efficient above roughly 5,000–7,000 lei/month net income.
How does the Romanian microîntreprindere (1%) tax work?
The microîntreprindere regime lets Romanian SRL companies with revenue under €500,000 and at least one full-time employee pay 1% of total gross revenue as corporation tax, instead of 16% on profit. It is calculated on turnover — not profit — so it is very favourable for high-margin service businesses. Companies with no employee pay 3% instead of 1%. If revenue crosses €500,000 mid-year, the company switches to the 16% profit tax from that quarter. From 2024, microîntreprindere cannot be used for certain regulated activities (legal, medical, banking, insurance).
Does the Romanian IT income tax exemption still apply?
The IT sector income tax exemption was abolished as of January 1, 2025. In 2024, the exemption applied to software developers, analysts, and architects employed by IT companies with gross salary up to 10,000 lei/month — the portion above 10,000 lei was subject to a 6.5% reduced rate. From 2025, all IT employees pay the standard 10% income tax on their full salary, plus CAS 25% and CASS 10% with no ceiling. Pillar II pension contribution also became mandatory for the full gross from 2025.
When are Romanian tax deadlines?
Employees: CAS, CASS, and income tax withheld monthly by employer, submitted via D112 by the 25th of the following month — no personal filing required for employees with only employment income. PFA: submit D212 (declarație unică) by May 25, covering both prior-year income and advance estimates for the current year; make quarterly advance income tax payments. SRL: microîntreprindere tax declared and paid quarterly by the 25th of the month following each quarter. All filings via the ANAF portal at anaf.ro — register for SPV (Spațiu Privat Virtual) with your CNP and identity document.