📊 Tax

Romania Corporate Profit Tax (16%): When It Applies

The Romania corporate profit tax is the standard tax that an SRL pays when it doesn’t qualify for — or chooses to leave — the 1% micro-company regime. Here’s how it works for foreign owners in 2026.

The 16% rate

The corporate profit tax is 16%, applied to net taxable profit, not to turnover:

Taxable profit = Revenue − Deductible expenses − Non-taxable income + Non-deductible expenses

So you don’t pay on everything you invoice — you pay on profit after deductible costs, adjusted for tax purposes.

Why you’d be on profit tax instead of micro

Most small SRLs prefer the micro-company regime (1% on turnover), but you fall under the 16% profit tax if you don’t meet its conditions. Common reasons:

• Turnover above the cap — micro is limited to €100,000 in annual revenue; exceed it and you switch to profit tax.
• No employee — micro requires at least one employee; without one you don’t qualify.
• Activity or ownership rules — certain activities and shareholding situations are excluded from micro by law.

You can also be on profit tax simply because you opted out — for higher-cost, lower-margin businesses it can be the better deal.

Micro (1%) vs profit (16%)

Criterion	Micro-company	Profit tax
Tax rate	1%	16%
Tax base	turnover (all revenue)	net profit (after costs)
Typical fit	high margin, low costs	low margin, high costs
Key conditions	≤ €100,000 turnover, ≥ 1 employee	none — the default regime

Which is cheaper depends on your profit margin: high margin usually favours 1% on turnover, while thin margins with heavy expenses can make 16% on profit work out lower. See our Romania company tax guide for the full picture.

Don’t forget dividends

Profit left in the company is taxed once at 16%. When you then distribute it to shareholders, it’s taxed again at 16% dividend tax (2026). Plan both layers before you draw money out — see dividends from a Romanian SRL.

Important: these are 2026 figures. Rates, the micro turnover cap, the employee condition and fiscal-adjustment rules change periodically — confirm the current rules before deciding.

Get your regime right

Choosing between 1% and 16% has a real cash impact every year. Our accounting services in Romania calculate your taxable profit correctly and keep you on the most efficient regime.