What is the income tax rate for Romanian PFA?

Romanian PFA pay a flat 10% personal income tax on annual net income -- gross revenue minus documented business expenses under the real system, or on a fixed deemed-income figure set by ANAF under the income norms (norma de venit) system. There is no progressive rate; 10% applies from the first taxable leu. The Declaratia Unica (Form 212) is due online by 25 May of the following year.

Are CAS and CASS contributions mandatory for all PFA?

CAS (pension, 25%) is mandatory only when annual net income exceeds RON 48,600 (12 times the RON 4,050 minimum wage for 2025). CASS (health, 10%) applies on any positive income but has a minimum charge of RON 2,430 per year. Above RON 243,000 CASS is capped at RON 24,300. PFA below the CAS floor may pay voluntarily to build pension entitlement.

What is the difference between PFA and SRL micro-enterprise?

A PFA is a sole trader with unlimited personal liability, paying 10% income tax on net profit plus CAS/CASS. An SRL micro-enterprise is a limited-liability company paying 1% or 3% on gross turnover with no expense deduction. The SRL protects personal assets and can be more tax-efficient at higher revenues, but requires at least one employee and higher administrative costs.

What is the VAT registration threshold in Romania in 2025?

From 1 September 2025, VAT (TVA) registration becomes mandatory when annual taxable turnover exceeds RON 395,000 (approximately EUR 88,500), raised from the previous RON 300,000 threshold. The standard VAT rate is 21% (raised from 19% on 1 August 2025). B2B cross-border EU service providers must register regardless of turnover and apply the reverse charge mechanism.

What CAEN codes trigger the 3% micro-enterprise rate instead of 1%?

From 1 January 2025, the 3% micro-enterprise rate applies to companies whose primary CAEN code covers custom software development (6210), other IT services (6290), restaurants (5611), mobile food service (5612), and other catering activities (5622), among others listed in the Fiscal Code. All other qualifying micro-enterprises with turnover under EUR 60,000 apply the 1% rate; those above EUR 60,000 also apply 3%.

Self-Employed Tax in Romania — Rates, Rules & Filing

What framework governs self-employed taxation in Romania?

Romanian self-employed individuals operate as Persoana Fizica Autorizata (PFA) — an authorised individual — registered through the Trade Register Office (Oficiul Registrului Comertului) and administered by ANAF, the national tax authority (Agentia Nationala de Administrare Fiscala). Two personal taxation systems exist: the real system, where 10% personal income tax (impozit pe venit) applies to actual net income (gross revenue minus documented business expenses); and the income norms system (norma de venit), where ANAF publishes fixed annual deemed-income figures by activity type and county (judet), and the PFA pays 10% on that fixed amount regardless of actual earnings. The norms system suits trades and traditional services with predictable revenue and few deductible costs; the real system suits higher-earning professionals who can substantiate significant expenses. Both systems require filing Declaratia Unica (Form 212) each year, submitted online through the ANAF SPV portal, with the deadline for 2025 income set at 25 May 2026. Filing before 15 April 2026 attracts a 3% bonus reduction on income tax owed. [1, 2]

How are CAS pension and CASS health contributions calculated for PFA?

Beyond income tax, Romanian PFA pay two mandatory social contributions, both anchored to the gross minimum wage of RON 4,050 per month effective 1 January 2025. The CAS pension contribution (25%) becomes obligatory only when annual net income crosses 12 minimum wages (RON 48,600). PFA earning between RON 48,600 and RON 97,200 (24 minimum wages) pay CAS on a base of RON 48,600, yielding a fixed annual charge of RON 12,150. Those earning above RON 97,200 pay on a base of RON 97,200, yielding RON 24,300. PFA below the RON 48,600 floor may pay CAS voluntarily to preserve pension entitlement. The CASS health contribution (10%) applies from the first leu of positive income: PFA with net income below 6 minimum wages (RON 24,300) pay the minimum charge of RON 2,430; those with income between RON 24,300 and RON 243,000 (60 minimum wages) pay 10% of actual net income; above RON 243,000 the CASS liability is capped at RON 24,300 annually. CAS and CASS are declared and paid via the same annual Declaratia Unica. [3, 4]

Contribution	Rate	Mandatory threshold	Lower base	Upper cap
CAS (pension)	25%	RON 48,600 (12x min wage)	RON 48,600 -> RON 12,150 due	RON 97,200 -> RON 24,300 due
CASS (health)	10%	Any positive income	RON 24,300 floor -> RON 2,430 min	RON 243,000 cap -> RON 24,300 max
Income tax (PIT)	10%	None	Net income after expenses	No ceiling

What is the micro-enterprise (SRL) alternative to PFA?

Freelancers and small-business owners may instead incorporate a Societate cu Raspundere Limitata (SRL) and elect the micro-enterprise regime (microintreprindere) under Title III of the Fiscal Code. The micro-enterprise pays a turnover tax rather than a profit tax, making it attractive when margins are high. From 1 January 2025, two rates apply: 1% on annual revenues up to EUR 60,000; 3% for revenues above EUR 60,000 or for companies whose primary CAEN activity code falls within designated sectors including custom software development (CAEN 6210), other IT services (CAEN 6290), and restaurant and catering activities (CAEN 5611, 5612, 5622). The 2024-2025 reform cycle (Emergency Ordinance 156/2024) reduced the eligibility ceiling from EUR 500,000 to EUR 250,000 for 2025, with a further reduction to EUR 100,000 planned for 2026. To qualify, the SRL must employ at least one person (the owner-director qualifies), must not operate in banking, insurance, gambling, or oil extraction, and no shareholder with over 25% ownership may hold more than one micro-enterprise simultaneously. Dividends distributed from the SRL to individual shareholders are subject to 10% dividend withholding tax (raised from 8% for distributions from 1 January 2025). The practical comparison: a service-business PFA earning RON 200,000 net income pays roughly RON 42,000 in combined income tax plus full-rate CASS, while the same revenue in a 1% micro-enterprise SRL pays RON 4,000-6,000 turnover tax plus dividend tax at withdrawal -- though SRL incurs higher administrative overhead and requires a separate payroll. [4, 5]

When does VAT registration become mandatory for PFA?

A PFA or SRL must register for TVA (Taxa pe Valoarea Adaugata, Romanian VAT) once annual taxable turnover exceeds RON 395,000 (approximately EUR 88,500 at mid-2025 BNR rates). This threshold was raised from RON 300,000 effective 1 September 2025 under Government Ordinance 16/2025 implementing the EU SME VAT directive (Directive 2020/285/EU). Exceeding the threshold requires applying for VAT registration within 10 days. Below the threshold voluntary registration is available and commonly chosen by B2B operators seeking input VAT recovery on business costs. The standard TVA rate is 21% (raised from 19% on 1 August 2025); a single reduced rate of 11% applies to food, books, pharmaceuticals, hotel accommodation, and water supply (consolidated from the previous 9% and 5% rates). PFA and SRL providing services to EU business clients (B2B cross-border) must register regardless of turnover and apply the reverse charge mechanism. All VAT-registered entities are subject to Romania's mandatory e-Factura electronic invoicing system, which has been obligatory for B2B transactions since 1 July 2024. [6, 7]

How does Declaratia Unica filing work in practice?

The Declaratia Unica (Form 212) is Romania's single annual return that consolidates personal income tax, CAS, and CASS into one filing. Since 2024 the form covers only income actually realised in the prior year -- the previous requirement to estimate current-year income and pay advance contributions was removed. Filing is exclusively online through ANAF's SPV (Spatiul Privat Virtual) portal at anaf.ro or through the e-Guvernare.ro platform, using a qualified electronic signature or Government identity login. The deadline for 2025 income is 25 May 2026; the same date is the payment deadline for all obligations declared. An early-filing incentive of 3% of income tax owed applies if filed by 15 April 2026. Late filing triggers penalties under Article 219 of the Fiscal Procedure Code: 0.01% per day on unpaid tax plus a penalty of 0.04%-0.05% per day depending on the delay period. PFA who also receive employment income declare it separately through the employer; social contributions on independent income are always self-reported via Declaratia Unica. [3, 4]

For the broader Romanian tax landscape -- including treatment of capital gains, dividends, and rental income -- see the Romania country overview. Readers who receive cross-border income or hold foreign assets may also find the Romania tax treaty relief guide relevant. Because PFA and micro-enterprise structuring involves individual circumstances, figures and thresholds change yearly, and errors carry financial penalties, consulting a qualified tax professional registered with the Camera Consultantilor Fiscali (CCF) is the appropriate next step for personalised guidance.

Self-Employed Tax in Romania

Key points