Tax Law in Romania – Taxes, Rates and ANAF Disputes

Tax structure · transfer pricing · VAT disputes · ANAF assessments · international tax

Taxes in Romania are low by EU standards – 16% on company profit, 10% on personal income – but Romanian tax law is complex, frequently amended and enforced by ANAF (Agenția Națională de Administrare Fiscală) with increasing rigour. For international businesses, the tax consequences of structure choices, inter-company transactions, profit repatriation and expansion decisions in Romania are not always intuitive – and tax errors are expensive to correct after the fact.

Romania for Business Advisory S.R.L. provides English-speaking tax law advice for international entrepreneurs, foreign-owned companies and investors – covering tax structure selection, transfer pricing, international tax treaties, ANAF dispute resolution and tax due diligence. This is distinct from routine accounting and tax compliance, which is covered on our Accounting & Tax page. Tax law advice focuses on structuring, planning and resolving disputes.

Romania tax rates in 2026, in short (checked 6 October 2026): a company pays 16% corporate income tax on profit, or 1% of revenue under the micro company regime while revenue stays within €100,000 a year and it has at least one employee. A salary first loses 25% pension (CAS) and 10% health (CASS) contributions, then 10% income tax; the employer adds 2.25%. Dividends are taxed at 16%, standard VAT is 21% (11% reduced), and the annual corporate income tax return (D101) is due by 25 March of the following year (for 2025 profits, 25 June 2026 under GEO 153/2020).

On this page: tax rates · salary tax · tax structure · transfer pricing · tax treaties · foreigners and tax ID · ANAF disputes · FAQ

Tax law services in Romania

€150/hour
or a fixed fee per matter

Tax law services package includes:

Tax structure advice – CIT regime, micro vs standard, holding structure, exit planning
Transfer pricing – inter-company pricing policies, documentation and ANAF file preparation
Tax residence and permanent establishment (PE) analysis for foreign companies
Romanian tax treaty analysis – applicable DTA and withholding tax rates
ANAF tax assessment review – legal and factual analysis of ANAF findings
ANAF administrative challenge (contestație) – preparation and submission
Tax court appeal support – preparation of legal arguments for court proceedings
VAT dispute advice – VAT deductibility, reverse charge, ANAF VAT inspection support
Customs and excise duty disputes – classification, valuation and origin queries
Tax due diligence – review of target company’s tax position for M&A
Tax ruling application (soluție fiscală individuală anticipată) – ANAF advance ruling
Payroll and social contribution structuring – director remuneration, dividend vs salary

Indicative fixed fees – standard tax law matters

Tax structure consultation (initial – 90 min) from €350
Transfer pricing policy document (standard inter-company) from €800
Transfer pricing file – annual local file (single entity) from €1,500
Tax treaty analysis – written opinion from €500
ANAF tax assessment review – written analysis from €600
Administrative tax challenge (contestație) – preparation from €1,000
Tax due diligence – single entity (M&A) from €1,200
VAT deductibility dispute – written legal opinion from €500
Advance tax ruling application (ANAF) from €800
Permanent establishment analysis – written opinion from €600

Get tax law advice →

All fees confirmed in writing before engagement. Legal representation before ANAF and the courts is provided by our partner lawyer (avocat, member of a Romanian bar). Complex ANAF disputes, court proceedings and multi-entity transfer pricing engagements are quoted after scoping. Tax law advice must be verified by a qualified Romanian tax adviser for your specific facts. Fees may be subject to Romanian VAT.

Tax law advice vs tax compliance – two separate services

The Accounting & Tax service covers routine compliance: bookkeeping, VAT returns, payroll, annual financial statements and CIT declarations. Tax Law (this page) covers legal matters: tax structure selection, transfer pricing documentation, ANAF dispute challenges, tax treaty interpretation and tax due diligence for transactions. Both services are available through Romania for Business Advisory S.R.L. – often coordinated in the same client engagement.

Romanian Tax Rates for 2026 at a Glance

Taxation in Romania follows the Fiscal Code (Codul Fiscal, Law 227/2015); the rates below include the changes made by Law 141/2025 that apply in 2026 and were checked on 6 October 2026 against the PwC Worldwide Tax Summaries for Romania. Tax rates and regime conditions change – all figures below should be verified with a qualified Romanian tax adviser before any decision is made.

Microenterprise tax (revenue ≤ €100k)

16%

Standard corporate income tax (CIT)

16%

Dividend withholding tax

21%

Standard VAT rate

10%

Personal income tax (PIT)

The full list of tax rates in Romania that a foreign-owned company and its owners usually meet:

Tax	Rate in 2026	Who pays and conditions
Corporate income tax	16% of taxable profit	Romanian companies and Romanian branches (permanent establishments) of foreign companies. Annual return D101 by 25 March of the following year (2025 profits: 25 June 2026).
Micro company tax	1% of revenue	Instead of profit tax, for companies with revenue up to €100,000 and at least one employee; not available in banking, insurance, capital markets, gambling, oil and gas. The 3% rate no longer exists. Conditions are explained in our guide to micro company rules.
Minimum turnover tax (IMCA)	0.5% of adjusted turnover	Companies with turnover above €50 million whose profit tax is lower than IMCA. Abolished from fiscal year 2027.
Dividend tax	16%	Withheld by the company paying the dividend. A Romanian or EU parent company that has held at least 10% for one year is exempt.
Personal income tax	10%	Salaries, freelance (PFA) income, rent; pensions above RON 3,000 a month.
Social contributions on salaries	25% CAS + 10% CASS (employee), 2.25% CAM (employer)	Withheld monthly by the employer – see the salary tax example below.
Capital gains of individuals	16%	On the sale of shares, including SRL shares, from 1 January 2026 (10% before).
VAT	21% standard, 11% reduced	Registration becomes mandatory once turnover passes RON 395,000 – see VAT registration in Romania.
Withholding tax on payments abroad	16%	Dividends, interest, royalties and services paid to non-residents, unless a tax treaty or EU directive lowers the rate.

Tax rates and thresholds are subject to change – verify before acting

Romanian tax law has changed significantly and repeatedly since 2022. The rates above were last checked on 6 October 2026. All tax rates, regime conditions and thresholds must be verified with a qualified Romanian tax adviser before any business or structural decision is made.

What Employees and Employers Pay in Salary Tax

Salary tax in Romania is a flat 10% income tax, charged only after the employee’s social contributions – 25% for pension (CAS) and 10% for health (CASS) – have been taken from the gross salary. The employer adds the 2.25% work insurance contribution (CAM), files one monthly return (D112) and pays everything by the 25th of the following month. On a gross salary of RON 10,000 a month:

Item	Rate	On RON 10,000 gross a month
Pension contribution (CAS), employee	25% of gross	RON 2,500
Health contribution (CASS), employee	10% of gross	RON 1,000
Income tax	10% of RON 6,500 (gross minus CAS and CASS)	RON 650
Net salary paid to the employee	58.5% of gross	RON 5,850
Work insurance contribution (CAM), employer	2.25% of gross, on top	RON 225 – total employer cost RON 10,225

Employees on low salaries also receive a personal deduction that reduces the income tax; the example assumes none. Income tax in Romania is the same 10% on freelance (PFA) and rental income, which individuals declare themselves in the annual single return (declarația unică) by 25 May of the following year. For owner-directors, the split between salary and 16% dividends is covered under tax structure advice below; payroll itself is run by our payroll and HR administration team, and gross pay by role is in our Romanian salary benchmarks.

Tax Law Services for International Businesses in Romania

Romania for Business Advisory S.R.L. provides tax law advice across six areas relevant to international businesses in Romania. Each is described in detail in the sections that follow.

Tax Structure & Planning

Structuring Romanian operations, holding structures, profit repatriation and exit planning from a Romanian tax perspective.

CIT regime selection (micro vs standard)
Holding structure advice
Dividend repatriation planning
Exit and disposal tax planning
Real estate tax structuring

Transfer Pricing

Inter-company pricing rules, documentation requirements and ANAF compliance for related-party transactions.

Transfer pricing policy
Annual local file preparation
Country-by-country reporting
ANAF TP inspection support
Advance pricing agreement

International Tax & Treaties

Double tax treaty analysis, permanent establishment risk and withholding tax optimisation for cross-border structures.

DTA treaty analysis
PE risk assessment
Withholding tax rates
Foreign tax credit advice
Exit taxation planning

ANAF Disputes & Challenges

Advice and support in ANAF tax inspections, assessment challenges and administrative appeal proceedings; legal representation through our partner lawyer.

ANAF tax assessment review
Administrative challenge (contestație)
Tax court appeal preparation
ANAF inspection support
Penalty and interest analysis

VAT & Customs Disputes

VAT deductibility disputes, customs classification challenges and indirect tax structuring for Romanian operations.

VAT deductibility disputes
Reverse charge analysis
Customs classification
Import/export duty disputes
VAT grouping advice

Tax Due Diligence

Tax review of target companies for M&A, investment rounds and restructuring – identifying tax risks and liabilities.

Corporate tax DD
VAT compliance review
Transfer pricing DD
Tax debt verification (ANAF)
Tax indemnity advice

Tax Structure Advice for International Businesses in Romania

The tax structure of a Romanian operation – which entity type to use, how profits are extracted, how the Romanian company relates to the parent or holding company – significantly affects the total tax burden. Structural choices made at incorporation are difficult and expensive to reverse. Tax law advice before incorporation or before a transaction is always more cost-effective than restructuring after the fact.

Structural question	Tax law considerations
SRL vs branch – which is more tax-efficient?	An SRL that qualifies for the microenterprise regime is subject to 1% tax on revenue, while a branch is generally subject to 16% corporate income tax on profit. For EU parent companies, a branch avoids Romanian dividend withholding tax because transfers of branch profits are not dividend distributions. The optimal structure depends on revenue, profitability, parent company jurisdiction and the applicable double tax treaty.
Holding structure above the Romanian SRL	For investors holding shares in multiple Romanian companies, or planning eventual sale, a holding structure above the Romanian operating company may provide capital gains tax planning opportunities. The location of the holding company affects withholding tax on dividends, capital gains on disposal and treaty access. Romania for Business Advisory S.R.L. advises on the Romanian tax implications of different holding locations.
Dividend vs salary for owner-directors	Owner-directors of Romanian SRL companies may receive remuneration as salary or distribute profits as dividends, with dividends generally subject to 16% withholding tax. The optimal mix depends on the microenterprise employee requirement, social security ceiling calculations and the director’s personal tax position. We model both scenarios for each client.
Profit repatriation to a foreign parent company	Dividends paid by a Romanian SRL to a foreign parent company are generally subject to 16% withholding tax – reduced or eliminated if the applicable double tax treaty provides a lower rate, or if the EU Parent-Subsidiary Directive applies (for EU parent companies holding ≥10% for ≥1 year). We advise on the applicable treaty rate and the documentation required to claim it.
Capital gains on disposal of a Romanian company	Capital gains on the sale of shares in a Romanian SRL by a non-resident individual or company are subject to Romanian capital gains tax – 16% for individuals since 1 January 2026 (10% before) and 16% corporate income tax for companies – unless a double tax treaty allocates the right to tax to the seller’s home country. The interaction of Romanian tax law and the applicable treaty must be analysed before any sale is agreed.
Real estate – direct ownership vs SRL	Romanian real estate can be owned directly by an individual or through a Romanian SRL. The tax treatment of rental income, capital gains on disposal and inheritance differ materially between the two routes. For international investors, the SRL route typically offers better tax planning opportunities – but the correct structure depends on the investor’s country of residence and applicable treaties.

Transfer Pricing – Inter-Company Transactions and ANAF Requirements

Transfer pricing rules apply when a Romanian company transacts with related parties – parent companies, subsidiaries, associated entities or individuals who control the company. Romanian law requires that all inter-company transactions are conducted at arm’s length (prețul de piață) – meaning the same price that unrelated parties would agree in comparable circumstances. ANAF has significantly increased transfer pricing audit activity in recent years.

Transfer pricing requirement	What it means for foreign-owned Romanian companies
Arm’s length principle	All transactions between a Romanian SRL and its related parties – including management fees, intercompany loans, royalties, services and goods – must be priced as if the parties were independent. ANAF can challenge prices it considers non-arm’s-length and impose additional tax, penalties and interest.
Transactions requiring TP documentation	The most common related-party transactions that require TP documentation for Romanian SRL companies: management fees from the parent company, intercompany loans (and the interest rate charged), royalty payments for use of IP, goods supplied by a related-party manufacturer, and distribution margins in a principal-limited risk structure.
Documentation thresholds	Under ANAF Order 828/2026, which applies to transactions from 2026, a transfer pricing file (dosar prețuri de transfer) is required when the annual value of transactions with one related party exceeds: for large taxpayers €100,000 for services, €200,000 for financing, €250,000 for intangibles and €350,000 for goods; for small and medium-sized companies €50,000, €100,000, €150,000 and €200,000 respectively (Forvis Mazars summary).
Annual local file	The local file (fișier local) is the primary transfer pricing document required for Romanian companies – describing the company’s operations, the related-party transactions, the pricing method used and the benchmarking analysis supporting arm’s-length pricing. Large taxpayers prepare it every year and, from 2026 transactions, file it through the ANAF online portal (SPV) within 30 working days after the D101 deadline. Other companies present it when ANAF asks for it during an inspection, within 30 to 60 days of the request.
Country-by-country reporting (CbCR)	Romanian multinational groups with consolidated revenue above €750 million are required to prepare country-by-country reports. Non-Romanian multinationals with Romanian subsidiaries may have CbCR obligations in their home jurisdiction – the Romanian subsidiary must cooperate with group reporting. Romania for Business Advisory S.R.L. advises on CbCR obligations and coordination.
Advance pricing agreements (APAs)	A Romanian company can apply for an advance pricing agreement (acord de preț în avans) with ANAF – a binding agreement on the pricing methodology for a specific related-party transaction. APAs provide certainty and protect the company from ANAF challenge for the agreed period. Romania for Business Advisory S.R.L. coordinates APA applications.

ANAF transfer pricing audits are increasing – documentation is a legal obligation

ANAF has significantly increased transfer pricing audit activity targeting foreign-owned Romanian companies. A company that cannot produce its transfer pricing file within the deadline ANAF sets (30 to 60 days for most companies) faces an automatic ANAF-estimated price adjustment, penalties and interest. Transfer pricing documentation must be prepared before an inspection notice arrives – not in response to one.

International Tax and Double Tax Treaties – Romania

Romania has an extensive network of double taxation agreements (DTAs) – over 90 tax treaties in force – covering the reduction or elimination of withholding tax on dividends, interest and royalties, and the allocation of taxing rights on capital gains, employment income and business profits. For international businesses, the applicable treaty can significantly reduce the Romanian tax cost of cross-border flows.

International tax issue	Romanian position and treaty interaction
Withholding tax on dividends – DTA rate	Romanian domestic law generally imposes 16% withholding tax on dividends paid to non-resident shareholders. Most Romanian DTAs reduce this to 5% or 0% for corporate shareholders holding a minimum percentage. EU Parent-Subsidiary Directive can eliminate withholding tax entirely for EU parent companies meeting the conditions. Romania for Business Advisory S.R.L. confirms the applicable DTA rate for the client’s specific jurisdiction.
Withholding tax on interest	Romania imposes 16% withholding tax on interest paid to non-resident companies (0% for an EU-resident company that has held at least 25% of the Romanian company for two years, under the EU Interest & Royalties Directive). DTAs commonly reduce this rate – typically to 10% or lower. Interest on loans from related parties is subject to transfer pricing rules in addition to withholding tax.
Withholding tax on royalties	Romania imposes 16% withholding tax on royalties paid to non-residents. The EU Interest & Royalties Directive reduces this to 0% for an EU-resident company meeting the same 25% and two-year holding test. DTAs reduce the rate for non-EU payees – typically to 10% or lower. Royalty structures must comply with transfer pricing rules.
Permanent establishment (PE) risk	A foreign company that has employees, an agent or a fixed place of business in Romania may create a ‘permanent establishment’ – triggering Romanian corporate income tax on the profits attributable to the PE. Common PE-creating activities: a Romanian sales office or representative, a construction site lasting more than 6 months under the Fiscal Code (the applicable treaty may set a longer period), or a dependent agent who regularly concludes contracts in Romania.
Capital gains on disposal of Romanian shares	Romanian domestic law taxes capital gains on disposal of Romanian company shares by non-residents at 16% for both individuals and companies (individuals paid 10% until 2025). Most Romanian DTAs allocate the right to tax capital gains on company shares to the country of the seller’s residence – eliminating Romanian tax entirely. Verification of the applicable treaty position is essential before structuring any disposal.
Tax residency of directors and employees	Directors and employees working in Romania may trigger Romanian personal income tax (PIT) and social contribution obligations – depending on their number of working days in Romania and their tax residency status. Romania has DTAs covering employment income that may limit Romanian PIT obligations for short-term assignments. We advise on the applicable treaty position.

For British and American owners, two treaties matter most. The UK–Romania treaty signed on 13 November 2024 has applied in Romania since 1 January 2026 (in the UK from 1 April 2026 for corporation tax and 6 April 2026 for income tax) and replaced the 1977 treaty; it sets withholding on dividends at 0%, 5% or 15% depending on the shareholder and holding, and on interest and royalties at 0% or 3% (HMRC treaty record, PwC withholding tax table). The US–Romania tax treaty dates from 1973 and caps Romanian withholding at 10% on dividends and interest and 10% or 15% on royalties.

How Foreigners Are Taxed in Romania: Residence and Tax ID

Taxes in Romania for foreigners depend on tax residence, not citizenship. An individual becomes Romanian tax resident by having a domicile or the centre of vital interests in Romania, or by staying more than 183 days in any 12-month period ending in the calendar year – in that case from the first day of arrival. Residents pay Romanian tax on worldwide income. Non-residents pay Romanian taxes only on income from Romania, such as a Romanian salary, rent from Romanian property or dividends from a Romanian company, and the treaty rate applies once they give the payer a certificate of tax residence. Moving to Romania is a separate procedure, described on our residence permit page.

A Romanian company receives its tax identification number at incorporation: the unique registration code (CUI, cod unic de înregistrare) assigned by the Trade Register (ONRC), which ANAF uses for all of the company’s taxes. A VAT-registered company quotes the same number with the RO prefix – see the Romanian VAT number format. A foreign individual without a Romanian personal numeric code (CNP) who has to pay tax in Romania obtains a fiscal identification number (NIF) from ANAF with form 030.

ANAF Tax Inspections, Assessments and Administrative Challenges

ANAF (Agenția Națională de Administrare Fiscală) is the Romanian tax authority responsible for tax inspections, assessments, enforcement and dispute resolution. ANAF has broad investigative powers and increasing sophistication in identifying tax planning arrangements it considers non-compliant. When ANAF issues a tax assessment (decizie de impunere), the company has specific procedural rights – including the right to challenge the assessment through an administrative appeal (contestație) before taking a case to court.

ANAF inspection notice received

Document response prepared

ANAF assessment issued

Contestație filed (45 days)

ANAF appeal decision

Tax court appeal (if needed)

ANAF dispute stage	What Romania for Business Advisory S.R.L. provides
ANAF inspection – initial response	When an ANAF inspection notice (aviz de inspecție fiscală) is received, we review the scope of the inspection, prepare the document response strategy, and attend ANAF meetings on the client’s behalf. The initial response sets the tone – a well-organised response reduces the risk of aggressive ANAF findings.
Tax assessment review	When ANAF issues a tax assessment (decizie de impunere) – a formal finding of additional tax due – we conduct a legal and factual analysis of the assessment. We identify errors in the factual basis, misapplication of the law, incorrect penalty calculation and procedural deficiencies that may invalidate the assessment.
Administrative challenge (contestație)	The company has 45 days from receipt of the ANAF assessment to file a written administrative challenge (contestație). This is a mandatory pre-court step. We prepare the contestație – analysing the legal and factual grounds for challenge, citing relevant ANAF practice and court precedent, and presenting the client’s position. A well-prepared contestație often resolves the dispute without court proceedings.
ANAF appeal resolution	ANAF’s appeal resolution directorate (Direcția Generală de Soluționare a Contestațiilor) reviews the contestație and issues a decision – either annulling the assessment, reducing it, or dismissing the challenge. We advise on the outcome and whether to accept it or pursue further court appeal.
Tax court proceedings	If the administrative challenge is rejected or partially dismissed, the company can appeal to the Romanian administrative and fiscal court (instanța de contencios administrativ și fiscal). Romania for Business Advisory S.R.L. supports the preparation of legal arguments, evidence and expert witnesses for tax court proceedings, working alongside specialist Romanian litigation counsel.
Penalty and interest negotiation	Romanian law provides for reduction of late payment penalties in certain circumstances. We advise on the grounds for penalty reduction applications and coordinate the administrative process for reducing or contesting interest and penalties on disputed assessments.

Frequently Asked Questions – Tax Law in Romania

Tax compliance covers routine obligations – bookkeeping, VAT returns, CIT declarations, annual financial statements and payroll. These are covered on our Accounting & Tax page. Tax law advice (this page) covers legal matters: structuring decisions, transfer pricing documentation, ANAF dispute challenges, international tax treaty analysis and tax due diligence for transactions. Both services are available from Romania for Business Advisory S.R.L. and are often coordinated in the same client engagement.

The standard corporate income tax (CIT) rate is 16% on taxable profit. Companies that qualify for the microenterprise regime pay 1% on revenue, subject to an annual revenue threshold of €100,000. Eligibility conditions for the microenterprise regime include having at least one employee (within 90 days of registration) and not being in certain excluded sectors. All rates must be verified for the current year before any decision.

An employee pays 25% pension and 10% health contributions from the gross salary and 10% income tax on the rest, so RON 10,000 gross becomes RON 5,850 net. A company pays 16% on profit, or 1% of revenue as a micro company up to €100,000 a year, and its owners pay 16% on dividends. Freelancers (PFA) pay 10% income tax plus capped CAS and CASS.

Transfer pricing rules apply when a Romanian company transacts with related parties – parent companies, subsidiaries, shareholders or associated entities. Romanian law requires all such transactions to be priced at arm’s length (as unrelated parties would agree). If your Romanian SRL pays management fees, royalties or interest to a related party, or buys goods or services from a related company, transfer pricing rules apply and documentation is required above certain transaction thresholds.

Yes. ANAF has broad powers to inspect any Romanian company’s tax affairs – including corporate income tax, VAT, payroll taxes, transfer pricing and withholding taxes. Inspections are typically announced by an inspection notice (aviz de inspecție fiscală) 30 days before they begin for large taxpayers and 15 days before for other companies (Fiscal Procedure Code, art. 122), or without advance notice after an unannounced anti-fraud check. Romania for Business Advisory S.R.L. can attend ANAF inspections for your company under a power of attorney; where legal representation is needed, our partner lawyer provides it.

When ANAF issues a tax assessment (decizie de impunere), the company has 45 days from receipt to file a written administrative challenge (contestație) with ANAF’s appeal directorate. This is a mandatory step before any court appeal. A well-prepared contestație – addressing legal errors, factual inaccuracies and incorrect penalty calculations – often resolves the dispute without court proceedings. Romania for Business Advisory S.R.L. prepares contestații as part of its tax law dispute service.

Yes. Romania has over 90 double tax treaties (DTAs) in force. Applicable DTAs may reduce Romanian withholding tax on dividends from the domestic 16% rate to a lower treaty rate. Most DTAs also reduce withholding tax on interest (from 16% to 10% or lower) and royalties (from 16% to 10% or lower) – depending on the treaty and the shareholder’s holding percentage. EU-resident companies may also benefit from the EU Parent-Subsidiary Directive (dividends) and the EU Interest & Royalties Directive. Romania for Business Advisory S.R.L. confirms the applicable treaty rate for the client’s specific jurisdiction.

A permanent establishment (PE) is a taxable presence of a foreign company in Romania – created when the foreign company has a fixed place of business in Romania (office, factory, construction site), employees who habitually work in Romania, or a dependent agent who regularly concludes contracts in Romania. A PE makes the foreign company subject to Romanian CIT on profits attributable to the PE. Romania for Business Advisory S.R.L. conducts PE risk assessments for foreign companies considering or already conducting activities in Romania.

This depends on your home country’s tax rules and the applicable double tax treaty between Romania and your country. Romanian withholding tax may be credited against home-country tax under the applicable treaty. For EU residents, the EU Parent-Subsidiary Directive may eliminate or reduce both Romanian withholding tax and home-country tax on dividends received from a Romanian subsidiary. Romania for Business Advisory S.R.L. advises on the Romanian side of cross-border dividend flows.

Yes. Romania offers an advance tax ruling mechanism – soluție fiscală individuală anticipată – through which a company can obtain a binding ANAF opinion on the tax treatment of a specific planned transaction or structure before it is implemented. An advance ruling provides certainty and protects the company from ANAF challenge if the transaction is implemented as described. Romania for Business Advisory S.R.L. coordinates advance ruling applications.

Failure to provide transfer pricing documentation within the ANAF-specified deadline (30 to 60 days from the request for most companies) results in an automatic ANAF price estimation – ANAF determines what it considers the arm’s-length price and imposes additional tax based on that estimate, plus late payment interest of 0.02% per day and, because the tax was not declared, a non-declaration penalty of 0.08% per day (Fiscal Procedure Code, art. 174 and 181). In practice, non-compliance with TP documentation requirements is one of the most expensive tax errors a foreign-owned Romanian company can make.

Yes. The US–Romania income tax treaty from 1973 is still in force and limits Romanian withholding tax to 10% on dividends and interest and 10% or 15% on royalties, instead of the domestic 16%. To use the lower rate, the US recipient gives the Romanian payer a certificate of US tax residence before the payment.