SRL taxes in Romania for Ukrainians: micro, profit tax, TVA and dividends

SRL taxes in Romania for Ukrainians cannot be understood through a single number.

Very often a person asks:

“What is the tax for a company in Romania?”

And expects a simple answer:

1%, 3%, 16%, TVA or dividends.

But an SRL's tax model depends on more than the rate.

It depends on turnover, type of activity, CAEN, employees, expenses, TVA, profit, dividends, the bank, accounting and the company's purpose.

If the company is tied to a residence permit, real estate or a European structure, the tax logic becomes even more important.

That is why taxes should be calculated not after the SRL is opened, but before registration and before operations begin.

Why you cannot look only at 1%

Many Ukrainians have heard that Romania has the micro company regime and that the tax can be 1% of revenue.

This is indeed an important regime, but it should not be seen as a universal solution for everyone.

You need to understand:

whether the company meets the micro conditions; what turnover is planned; whether there is an employee; which CAEN codes are chosen; whether there is an activity with a higher rate; what the business's expenses are; what profit is expected; what happens as turnover grows.

Micro is not simply “a 1% tax.”

It is a tax regime with its own conditions and limits.

Micro company: the logic of a tax on revenue

Under the micro regime, tax is usually calculated not on profit but on the company's income.

This is fundamentally important.

If the company has received revenue but has large expenses, the tax may still be calculated on revenue.

For example, a company received income and spent money on advertising, rent, contractors, services, the bank and accounting.

If it is under the micro regime, the tax base must be determined according to the rules of that regime.

For a high-margin business, micro can be convenient.

For a business with large expenses, you need to calculate carefully.

Profit tax: tax on profit

If the company does not qualify for micro or leaves that regime, profit tax may apply.

In this case the logic is different:

income minus allowable expenses = profit; profit is taxed; expenses must be documented and related to the activity.

This regime may make more sense for a company with large expenses, a complex structure, investments, equipment, real estate or projects where profit does not appear right away.

But here accounting is especially important.

You cannot just say:

“We have a lot of expenses.”

You need to prove with documents that the expenses relate to the SRL's activity.

TVA: when the VAT question arises

TVA is Romanian VAT.

For an SRL owner, it is important to understand that TVA is not just a percentage added to the price.

It is a system of records, invoices, returns, electronic documents, input and output TVA.

The TVA question depends on:

turnover; type of activity; clients; the client's country; goods or services; registration for TVA purposes; intra-Community transactions; imports or exports; electronic invoices; accounting.

If the company works with clients in the EU, buys services from other countries, sells services to companies or works with real estate, TVA needs to be analyzed in advance.

A TVA mistake can be costly.

Dividends

Many SRL owners think not only about the company's taxes but also about taking out profit.

Dividends are a way of distributing profit to the owner.

But dividends must not be confused with the company's turnover.

First the company earns income. Then it records expenses. Then the result is determined. Then the possibility of distributing profit is checked. Then dividends are declared and taxed.

If the owner simply withdraws money from the company as personal funds, this can create a problem.

The SRL's money and the owner's personal money are not the same thing.

The owner's salary and employees

If the SRL has an employee or the administrator receives a salary, payroll logic comes into play.

This is a separate block:

an employment contract; salary; social contributions; income tax; returns; employer costs; accounting records.

For some tax regimes, having an employee may be an important condition.

But an employee cannot be hired just “for the scheme.”

You need to understand who works, what function they perform, what the salary is, what the costs are and how this relates to the business.

Company expenses

One of the most common mistakes is assuming that everything can be paid through the company.

This is wrong.

An expense must be related to the SRL's activity and supported by documents.

You need to determine in advance:

which expenses are business expenses; which are personal; which are mixed; which require a contract; which require an invoice; which can be recorded; which are better not run through the company.

Special care is needed with cars, rent, renovations, business trips, advertising, equipment, services and real estate.

Taxes and the bank

The bank looks at the movement of money.

If payments do not match the company's activity, contracts are weak, expenses are chaotic and the tax model is unclear, the bank may ask questions.

The bank and the accountant should see one picture:

CAEN; clients; contracts; payments; invoices; expenses; taxes; dividends.

If the tax model is well thought out, the company looks stronger.

If not, the SRL becomes a source of questions.

Taxes and the residence permit

If the SRL is used as part of a residence permit route, tax discipline is especially important.

The company must show real activity:

a bank; clients; contracts; income; accounting; taxes; economic purpose.

An empty company, no activity, chaotic expenses and an unclear model do not strengthen a business route.

A residence permit through business requires not only registering an SRL but also a sound financial logic.

Taxes and real estate

If the SRL is connected with real estate, the tax model needs to be calculated separately.

Different scenarios are possible:

buying a property; renting; property management; renovation; design; services for tenants; an investment project; a commission model.

Each scenario affects documents, expenses, TVA, income, profit and dividends.

You should not buy a property through the company just because “it's more profitable that way.”

You need to calculate the whole model.

The main mistakes Ukrainians make

Mistake #1. Opening an SRL without calculating taxes.

Mistake #2. Hearing “1%” and not checking the micro conditions.

Mistake #3. Confusing revenue, profit and dividends.

Mistake #4. Not taking TVA into account.

Mistake #5. Paying personal expenses from the company.

Mistake #6. Not putting contracts in place.

Mistake #7. Not understanding payroll and employees.

Mistake #8. Not linking taxes to the bank.

Mistake #9. Not linking the SRL to the residence permit.

Mistake #10. Starting operations without an accountant.

How Alliance / Armonie helps

Alliance / Armonie helps Ukrainians build an SRL tax model in Romania before mistakes happen.

During the strategic assessment we review:

the business model; CAEN; expected turnover; expenses; micro or profit tax; TVA; dividends; salaries; the bank; contracts; accounting; real estate; the residence permit; the family; a plan for 1–3 years.

After the assessment it becomes clear which regime may fit, which expenses to record, when TVA comes in, how to take out profit and how not to undermine the business route.

What to send for an initial assessment

For an initial analysis, send:

whether you already have an SRL; what the activity is; which CAEN codes; whether there is income; what turnover is expected; what expenses are planned; whether there are employees; whether TVA is needed; whether there is a bank; whether there are contracts; whether a residence permit is needed; whether there is real estate; what your main tax question is.

This is enough to start the review.

Conclusion

SRL taxes in Romania for Ukrainians are not a single rate.

They are a system.

Micro. Profit tax. TVA. Dividends. Salaries. Expenses. Bank. Accounting. Residence permit. Real estate.

If you look only at the percentage, you can make a mistake.

If you calculate the whole model in advance, the SRL becomes a manageable tool for business, status and a European plan.

FAQ

What is the tax for an SRL in Romania?

It depends on the company's regime, turnover, activity, expenses, employees and TVA. It needs to be calculated individually.

What is a micro company?

It is a regime of tax on the company's income, subject to meeting the conditions. It does not automatically suit every SRL.

What is profit tax?

It is a tax on profit, where the company's income and allowable expenses are taken into account.

Does an SRL need to register for TVA?

It depends on turnover, transactions, clients, countries of payment and the type of activity.

Where should a tax calculation start?

With a strategic assessment of the business model, CAEN, turnover, expenses, TVA, dividends and the company's goals.