Taxes and declarations for an LLC in 2022

As far as the tax system is concerned, this is one of the most important factors on

that investors consider when setting up a limited liability company

in Romania. But what declarations and taxes are concerned in the case of an LLC? Read more and

you will find out!

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What taxes does an LLC have to pay?

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Income tax

These fees will be set according to the number of employees:

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• A tax rate of 1% applies if the LLC has one or more employees;
• A 3% tax rate applies if the LLC has no employees.

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However, if the turnover of an LLC will exceed €1 million, then the rate

tax rate will be 16%.

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Social contributions

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These are deducted, declared and paid by the employer:

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• 2.25% of the gross salary for the contribution for the work insurance (CAM)
• 45% social contributions, which include: 25% social security (CAS), 10% health insurance and 10% income tax.

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Tax on dividends

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Dividends can be used quarterly or annually if a tax of 5% of

the value of gross dividends are withheld, declared and paid.

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VAT rate

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The standard VAT rate is 19%, and the following taxes will be:

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• 9% - water, food, beverages, medical services;
• 5% - catering services, accommodation, textbooks, books, magazines, access to museums, cultural/sporting events.

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When does an LLC become a VAT payer?

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It is important to know that a newly established LLC is not liable for VAT. However,

the situation can change if:

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• Turnover will reach or exceed 300,000 lei;
• You choose to apply the normal VAT regime (valid even if the turnover is less than 300.000 lei).

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If you find yourself in one of the above situations, from the time of registration

company, then form 098 must be completed. If you become a VAT payer after

the company's establishment, form 010 must be completed.

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Declarations of a VAT non-paying LLC

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If an LLC is not a VAT payer, we consider the following statements: 100,

091, 390, 301, the annual balance sheet and the declaration for distribution of dividends.

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Limited liability companies not paying VAT are required to complete quarterly return 100 with

the tax due. If the company has at least one employee, the percentage is 1%, and if not

has no employees, the percentage is 3%. For the quarter ended, the 100th return must

be submitted by the 25th of the following month.

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The balance sheet is another statement to be filed by an LLC. This is a summary of the situation

financial - assets (capital derived from its activities) and liabilities (equity and

debts). Limited liability companies usually file their annual balance sheet within 150

days after the end of the financial year.

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The dividend distribution declaration is another document that must be filed every 3 months.

Monday. This can only be done after a summary of the financial situation of the

company, a simplified form of the balance sheet.

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In addition to the above, other documents should be submitted if your company has clients or

In this case, you will need the 091 declaration to obtain a

intra-Community VAT, and once you obtain this code and issue invoices to customers in

EU, you will file the 390 declaration (document to be filed in all months where it has been applied

intra-Community VAT code).

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The 301 declaration is also used to record and submit all

invoices for purchases of services outside Romania.

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Declarations of a VAT paying LLC

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If an LLC is a VAT payer, we consider the following statements: 300, 394,

094 and 390.

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Declaration 300 is one of the most important documents to be filed by LLCs

Through it, taxpayers declare the VAT they have to pay on their VAT returns.

pay for purchases they make from EU countries. This is submitted monthly, quarterly,

every six months or annually, depending on the period chosen by the registrants.

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The 394 declaration is a document filed monthly or quarterly to declare deliveries/supplies

/ purchases made on Romanian territory. This can be submitted together with the

previous.

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The 094 return is filed by LLCs whose tax period is quarterly, do not have

made intra-Community acquisitions and did not exceed EUR 100 000 in the previous year

It must be submitted annually by 25 January.

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Declaration 390 will also be taken into account.

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If you feel you've lost track of the documents your business needs, Banqup is here

to help you! Get rid of your worries and use our app to make your calculation easier

taxes!

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medium-sized. Through a digital working ecosystem, administrative tasks can be done quickly and

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