Posting of Workers in another E.U. Member State

Corporate income tax rate 16%

Taxpayers

• Romanian legal entities, except for taxpayers subject to the microenterprises tax or specific tax, tax-transparent entities and certain institutions specifically defined in the Fiscal Code (Law no. 227/2015 as further amended).

• Non-Romanian legal entities that carry out activities through one or more permanent establishments in Romania.

• Non-Romanian legal entities according to their place of effective management.

• Non-Romanian legal entities which obtain income from the transfer of ownership or any other rights related to immovable property located in Romania.

• Legal entities established according to European legislation that have their registered office in Romania.

• Non-Romanian legal entities operating in Romania through one or more elements treated as permanent establishments, with respect to situations involving the existence of non-uniform treatment of hybrid elements or nonuniform treatment of tax residence.

• Fiscal transparent entities, in situations that involve the existence of nonuniform treatments of the inverted hybrid elements. Fiscal year

S.R.L. Incorporation paying on Gross Profit 3% without Employee or 1% with at least 1 Employee, called Micro Enterprises.

MICRO-ENTERPRISES Turnover tax is compulsory, instead of corporate income tax, for Romanian legal entities with a turnover of up to 1,000,000 euros. However, any company that has a minimum registered capital of 45,000 RON and at least 2 employees, may choose to apply profit tax in any quarter after 1 April 2018, even if its turnover is less than 1,000,000 euros.

Taxe rate are:

• 1% for companies that have at least 1 employee

• 3% for companies with no employees

Micro-enterprises which are involved in sponsorship activities to support non-profit entities and religious organizations, which at the date of conclusion of the contract are signed up in the Register of entities/religious organizations for which tax deductions are granted, as well as micro-enterprises that grant scholarships to students enrolled in dual (practical and theoretical) vocational education, will be able to deduct the corresponding amounts from the income tax of micro-enterprises up to the value of 20% of the micro-enterprise income tax due for the quarter when those expenses were incurred.