As of 01/01/2016, important updates are introduced on Romanian Tax Code, on majority of national and local taxes. The most important updates, by type of tax, are as follows:
- Profit tax
- General profit tax rate confirmed for 16%.
- New allowance for reinvested profit in IT equipment (previously only for machinery)
- Maximum interest rate on inter-company loans allowed for deductibility for profit tax calculation is now 4% (previously 6%)
- Dividend tax
- As of 01/01/2016, new general dividend tax rate is 5% (previously 16%)
- Tax on dividends of 0% if a beneficiary hold a minimum 10% of share capital of dividend payer, for at least 1 year at date of payment of dividends.
- New: General VAT rate reduced at 20% (previously 24%)
- Reduced rate of 9% for food industry, accommodation in hotels, catering and restaurants, human and animal care, including drugs
- Reduced rate of 5% for books, expositions, museums
- New: reverse charge mechanism introduced for real estate industry – land, buildings, part of buildings.
- New: Reverse charge mechanism also available for deliveries of mobile phones, laptops, PCs, tablets, gaming console
- Local tax
- Local tax for buildings is now calculated on economical usage of building – residential or commercial (previously calculated based on ownership).
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