Relocating your business to Romania: A guide to accounting s Image

Relocating your business to Romania


A guide to accounting services Romania is a popular destination for businesses relocating from other parts of Europe and the world. It offers a number of advantages, including a skilled workforce, low labor costs, and a strategic location in Eastern Europe.

When relocating your business to Romania, it is important to choose a reliable accounting partner. A good accountant can help you to navigate the Romanian accounting system and ensure that you are in compliance with all relevant tax laws and regulations.

​Here are some tips for choosing an accounting firm in Romania:
  1. Ask for recommendations from other businesses that have relocated to Romania.
  2. Interview several accounting firms before making a decision.
  3. Make sure that the firm you choose has experience working with foreign-owned businesses.
  4. Ask about the firm's fees and services.

Accounting services in Romania

​The following are some of the most important accounting services that you may need when relocating your business to Romania:
  1. Bookkeeping: This involves recording all of your business's financial transactions.
  2. Tax preparation: This involves preparing and filing your business's tax returns.
  3. Payroll: This involves calculating and paying your employees' salaries and taxes.
  4. Auditing: This involves having your financial statements reviewed by an independent auditor.
  5. Financial consulting: This involves getting advice from an accountant on financial matters such as budgeting, forecasting, and investment.

Romanian accounting standards

Romanian accounting standards are based on the International Financial Reporting Standards (IFRS). This means that your financial statements will be prepared in a format that is recognized by businesses and investors around the world.

Taxation in Romania

The Romanian tax system is complex, but there are a number of tax breaks and incentives available to foreign-owned businesses. It is important to consult with an accountant to ensure that you are taking advantage of all of the available tax benefits.

The main taxes for a company in Romania in 2023 are:
  1. Corporate income tax (CIT): The standard CIT rate is 16%. However, taxpayers that are carrying on activities such as gambling and nightclubs are subject to either a 5% rate of the revenue obtained from such activities or a 16% rate of the taxable profit, depending on which is higher.
  2. Value added tax (VAT): The standard VAT rate in Romania is 19%. A reduced rate of 9% applies to certain goods and services, such as water, food and beverages, medical treatments and prostheses, and accommodation. An extra-reduced rate of 5% applies to certain goods and services, such as supplies of social housing, schoolbooks, hotel accommodation, restaurant and catering services, newspapers, magazines, and admission fees to castles, museums, sporting events, and cinemas.
Companies are also required to pay social security contributions for their employees. The employee contribution rate is 25%, and the employer contribution rate is 35.5%.
In addition to the above, companies may also be subject to other taxes, such as excise duties and property taxes.
It is important to note that Romanian tax laws are subject to change, so it is always best to consult with a qualified tax advisor to ensure that you are complying with all applicable laws and regulations.
Here are some additional tips for companies operating in Romania in 2023:
  1. File your tax returns on time. This will help you to avoid penalties and interest charges.
  2. Keep good accounting records. This will make it easier to prepare your tax returns and to support your claims in the event of a tax audit.
  3. Be aware of the latest tax changes. Romanian tax laws are subject to change, so it is important to stay informed of the latest developments.
You can consult with a qualified tax advisor to get personalized advice on your specific tax situation.


Conclusion

Relocating your business to Romania can be a complex process, but it can also be a rewarding one. By choosing a reliable accounting partner, you can ensure that your business is in compliance with all relevant laws and regulations, and that you are taking advantage of all of the available tax benefits.

Here are some additional tips for relocating your business to Romania:
  1. Do your research: Before you make the decision to relocate your business, it is important to do your research and learn as much as you can about the Romanian market and economy.
  2. Develop a business plan: A well-written business plan will help you to map out your goals and strategies for success in Romania.
  3. Get professional help: There are a number of professional services that can help you with the relocation process, including lawyers, accountants, and consultants.
  4. ​Be patient: It takes time to relocate a business to another country. Be patient and persistent, and you will eventually be successful.