Sole proprietorship or company in Romania: tax comparison
Taxes and contributions for a sole proprietor under each available system and for your own company, for a resident of the chosen country with the same profit.
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Form
Sole trader (PFA), actual income
Sole proprietorPersoană fizică autorizată (PFA) – sistem real
10% income tax on net income (revenue minus costs) after deducting contributions. Pension contribution CAS of 25% is charged on 12 minimum wages (RON 48,600) if income is between 12 and 24 minimum wages, or on 24 (RON 97,200) if higher; health contribution CASS of 10% is charged on the whole income, at least on 6 and at most on 72 minimum wages.
Conditions
No revenue limit; registration with the Trade Register (ONRC) and income and expense records are required. If net income is below 12 minimum wages (RON 48,600), CAS is optional; CASS is due on at least 6 minimum wages (RON 24,300) unless you have a salary of that size; with zero net income or a loss no CASS is due.
VAT exemption for turnover up to RON 395,000 a year; VAT is not included in the calculation.
Sole proprietorPersoană fizică autorizată (PFA) – normă de venit
The 10% tax and contributions are charged on a fixed income norm set by the regional tax directorate (at least 12 minimum wages), regardless of actual income. Only possible for activities on the official list.
Conditions
Only activities listed in MFP Order No. 925/2017; IT and consulting (CAEN 62, 7022) are not listed. If revenue in a year exceeds €25,000, the real system becomes mandatory from the following year.
CompanySocietate cu răspundere limitată (SRL) – impozit pe veniturile microîntreprinderilor
The company pays 1% of revenue instead of profit tax. It must have at least one full-time employee or an administrator under a mandate contract paid at least the minimum wage; that pay bears CAS 25%, CASS 10%, 10% income tax and CAM 2.25%. Dividends bear 16% tax and CASS.
Conditions
Revenue must not exceed €100,000 in the previous or current year (otherwise 16% profit tax from the quarter it is exceeded); a shareholder with more than 25% may have only one micro-enterprise; annual financial statements must be filed on time. A new company can apply the regime from its first year if the employee is hired within 90 days.
VAT exemption for turnover up to RON 395,000 a year; VAT is not included in the calculation.
CompanySocietate cu răspundere limitată (SRL) – impozit pe profit
Company profit is subject to 16% profit tax. Dividends distributed from 2026 bear 16% tax (withheld by the company) and CASS of 10% on 6, 12 or 24 minimum wages depending on the amount of dividends.
Conditions
No revenue limit and no employee requirement. CASS on dividends: dividends of 6 to 12 minimum wages (RON 24,300–48,600) — base of 6 wages, 12 to 24 — 12, from 24 (RON 97,200) — 24 wages.
VAT exemption for turnover up to RON 395,000 a year; VAT is not included in the calculation.
Business activity: IT and consulting services for business clients
A single owner, resident in Romania, with no other income and no employees (except the administrator's mandate required for the micro-enterprise), full year.
CAS/CASS thresholds and bases use the minimum wage in force on 1 January 2026: RON 4,050. The micro-enterprise administrator is paid the minimum wage each month: RON 4,050 in January–June and RON 4,325 from 1 July; no personal deduction is applied to it.
PFA: the lowest permitted CAS base is chosen; all costs are documented and fully deductible. SRL: the owner (except for the micro-enterprise mandate) takes no salary; when distributing, all profit after tax is paid out as dividends in the same year.
The €100,000 micro-enterprise limit is converted at RON 5.0895 per euro (ECB, 2 January 2026); the law uses the rate at the close of the financial year. VAT, local taxes and accounting costs are not included.
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