I made a video presentation on how to avoid problems with ANAF
Dealing with the Romanian tax authority (ANAF) can be challenging, but proper preparation helps prevent fines and audits. Here’s how to stay compliant:
Planning to do business in Romania?
Then there’s one thing you must get right — e-Factura.
The RO e-Invoicing platform (RO e-Factura) has been available since November 2021 for both the exchange of invoices with public administrations (B2G) and between private companies (B2B). The platform is available for issuing and receiving invoices.
Since January 2025 all companies in Romania should use this platform to make invoices.
Romanian tax control measures are becoming increasingly stringent, with ANAF doubling the amount imposed controls (despite only a 10% increase in the number of audits during 2024). This aggressive enforcement trend shows no signs of slowing down. In fact, documentary checks are expected to increase by 100% in 2025, signaling a new era of heightened fiscal scrutiny.
The implementation of SAF-T Romania will bring a significant transformation to tax reporting for non-resident taxpayers. Starting from January 2025, new compliance requirements will be in effect, and the initial filing deadline is set for February 28, 2025. This applies to all transactions carried out in January by non-resident companies registered for VAT. A grace period has been granted by the Romanian tax authorities until July 31, 2025, but failing to comply after this date may result in penalties of up to 1,000 EUR for late submissions.
Entrepreneurs in Romania frequently ask about the timing of dividend distributions when starting a new company. They want to understand when they can access their company's profits through dividends. Shareholders aim to receive their share of profits as quickly as possible.
Double taxation presents a crucial challenge for entities operating across Romania and Belgium. To address this issue, both nations have established a Double Taxation Agreement (DTA) that effectively prevents income from being subject to taxation in both jurisdictions simultaneously. Let's explore how this agreement functions between these two countries in 2024:
Overview of the Double Taxation Agreement (DTA) between Romania and Belgium
One of the common concerns for new entrepreneurs in Romania is the timing for a new company to distribute dividends. It is natural for business owners to be curious about the speed at which they can access their company's profits through dividends. Shareholders typically aim to receive their share of the profits at the earliest opportunity.
The key tax change targets IT workers earning wage income, affecting their income tax exemption cap.
What's the tax break for IT salaries?
Some IT staff enjoy higher take-home pay due to income tax exemption – they don't pay the 10% income tax.
Who gets the tax break?
Under new tax rules, the exemption applies to:
Romanian law allows new companies to distribute dividends quickly if they have profits. Let's look at how this works in practice.
Rules for Romanian Companies Paying Dividends
Romanian laws in 2024 let companies pay dividends yearly after approving financial statements, or quarterly throughout the year.
A new Romanian company can pay dividends soon after creation if it has profits. Companies can't pay dividends if they're losing money.
Create a micro-enterprise in Romania and pay 1% taxes in 2024
The micro-enterprise tax is computed as follows:
