Accounting Office Romania
Our services focus on delivering solutions for accounting in Romania, tailored to the needs of our clients.
We represent a top professional Romania accounting office offering a wide range of world-class facilities intended for both business entities and individuals. The professional team that we propose covers a large variety of requests from simple bookkeeping necessities to complex business accounting approaches.
Our affiliates in Bucharest and in all major Romanian cities develop accurate strategies in order to deliver high-value services to all our customers. Consistently ranking as one of the most prominent Romania accounting firms, our company commits to assuring cost-effective results always complemented by an in-depth understanding of each specific business. Our vision is to untiringly explore the fundamental concepts of promptitude and accuracy.
The principles of accounting in Romania need to be understood in order to allow for compliance and our team provides adequate services to resident and non-resident companies. Foreign nationals in particular will benefit from working with a team of dedicated professionals. This way, they can rest assured that the reporting obligations that fall on their Romanian company are duly observed and that they will have no issues and face no penalties.
| Quick Facts | |
|---|---|
| Bookkeeping services | Financial transaction recording, company bank accounts reconciling, accounts receivable and accounts payable, preparing the financial reports and statements, loan and debt repayment management, and others |
| Payroll in Romania | Wages payable, vacation payable, medical leave payable, employee health insurance payable |
| Invoicing services | Invoice issuance, tracking and management |
| Cash management | Cash inflow and outflow management, cash flow statement and relevant reports |
| Reporting | The standards for accounting in Romania demand that companies submit an annual financial statement, along with quarterly reports |
| Financial analysis | Profitability ratio calculation, net profit ratio calculation, other relevant data and information concerning the company's performance |
| Forensic accounting in Romania | Professional assistance in case of investigations concerning money laundering, insurance fraud, financial statement information falsification and others |
| Tax compliance | Assistance for tax return filing and payment for companies of all sizes and for non-resident companies |
| VAT compliance and reporting | Assistance for VAT registration (optional or mandatory) Assistance for monthly or quarterly VAT submissions (according to taxpayer category) |
| Audit in Romania | Annually or on demand, only for certain categories of taxpayers (generally medium and large companies). Our team provides audit services upon request |
| Property financial matters | Complete assistance for the payment of all applicable property taxes |
| Statutory compliance | Compliance with the applicable accounting standards in Romania which are in line with the relevant EU directives Assistance for IFRS in case of companies for which it is accepted as a second set of financial statements |
| Tax authority assistance | Representation in front of the National Agency for Tax Administration |
| Support for voluntary dissolution | Yes, upon request |
| Services for foreign companies offered by our specialists in accounting in Romania | Complete accounting services for foreign branches and subsidiaries in Romania |
| Consolidated accounts | Fiscal consolidation is possible in some cases. Our team can give you details. |
| Consolidated accounts package | Tailored according to the needs of the Romanian resident reporting entity that is part of a group. |
| Accounting updates frequency for our clients | Usually as required by law. Personalized accounting reports can be provided upon request. |
| Assistance per number of employees | Payroll and social security contribution packages suited to the company's number of employees. |
| Services per the number of transactions each month | We offer solutions for companies with few monthly transactions, as well as for those with more than 100 monthly transactions. |
| Industry-specific services | Special solutions for companies operating in the financial sector, or as needed. |
| Accounting for publicly listed companies | According to the reporting requirements in force for these types of legal entities in Romania. |
| Accounting counsel for sole traders in Romania | Advice and counsel regarding the often changing tax and reporting requirements in Romania. |
| Services when changing the business form | Updated solutions to reflect the new legal entity's accounting and reporting obligations. |
| Solutions for changing the accounting services provider | Upon request |
| Can the accounting provider be changed at any time? | Generally yes, however, the filing deadlines need to be considered and observed even if a change occurs. |
| When to request the change to our services | At the end of the quarter, or as needed in urgent cases. |
| Our Romanian experts | Accountants and financial advisors with extensive experience. |
| Why work with our team | We are a dedicated team that offers personalized solutions for companies of all sizes. |
| When to contact us for accounting services | As soon as the company registration is complete, or as needed during the financial year. |
Accountants Romania – General Aspects
In agreement with general legal regulations, companies are requested to use double-entry accounting and it is a mandatory procedure to draw up annual financial statements. Our Romania accounting office is fully aware of all routine processes imposed by local authorities and we are continuously developing efficient approaches in order to meet the most rigorous expectations. The public institution in charge of drawing and issuing standards and regulations in this specific field is the Ministry of Public Finance.
Services provided by our accountants in Romania fully comply with regional stipulations and also with European standards, always delivering explicit information about all administrative procedures. As all Romania accounting firms assert, there are three major accounting ledgers declared as compulsory: journal ledger, inventory ledger and general ledger. Each type of ledger gradually reflects various aspects concerning financial operations, assets, liabilities and monthly records covering more specific concepts. All documents
referring to accounting matters must be stored at the company’s headquarters.
Legal provisions for accounting in Romania
Ordinance no. 65/1994 on the organization of accounting expertise and the activity of certified accountants, with its subsequent modifications and additions, is one of the sources of law regarding the accounting profession and the manner in which accredited individuals deliver services.
According to this law, an accounting expert can provide the following services listed below. Our team observes these principles for accounting in Romania and is able to assist you as needed
The expert organizes, manages, maintains, verifies, and supervises the accounting process, he prepares and signs the financial statements and executes fiscal works, respectively the calculation of taxes, fees, and contributions, the preparation and submission of tax returns and ensuring the client’s representation in relation to the tax authorities, as part of a contract for the provision of services in the field of accounting.
The result of the verification or review work may consist of the certification signature granted by the chartered accountant.
An expert in accounting in Romania performs economic-financial analyzes and evaluations for financial-accounting purposes, other than those defined by Government Ordinance 24/2011 on some measures in the field of goods valuation, approved with amendments by Law no. 99/2013, with its subsequent amendments and completions. Such valuations may relate to estimates of the entity’s cash flows and financial condition, the measurement of income and expense, the estimate of the level of provisions and value adjustments, and other valuations performed by accounting experts in their current business, without the limit to these.
The expert also performs other financial accounting works, including activities of electronic personnel records, payroll, administrative and IT organization, and certification of information, data, and documents. He provides consultancy in financial management and accounting and provides specific services to managerial accounting and integrated reporting. He is also the one to ensure the internal management control and risk management of legal entities.
These services can be offered to natural or legal persons in Romania. We invite you to watch a video about our accounting services and how we can help you if you open a company in the country:
Romania Accounting Office – Our Services
The team of highly-trained professionals in our company may provide accounting assistance for various purposes and also perform a wide range of technicalities common to this field. Our accountants in Romania are able to assist you with the following services:
- file accounts with the Tax Authorities in Romania: each Romanian company needs to observe the deadlines for annual tax filing; our team expertly handles accounting in Romania;
- handle payroll administration: payroll processing is another aspect that calls for specific procedures our Romania accounting office can effectively manage full-cycle payroll processing in connection with statuary requirements and particular internal regulations of business entities
- perform VAT registration and VAT filings: we advise business owners on VAT registration in Romania and, as needed when the company exceeds the registration threshold, we will offer the needed guidance and assistance to perform the needed procedures for registration according to law;
- tax counseling: we can always provide the needed advisory support regarding taxation of corporate entities but also concerning only individuals;
- others: the accountants in our company will also file statuary and management reports; they will perform reviews and continuous monitoring of personnel costs, our accountants in Romania will also handle particular technicalities regarding benefits, retentions, and contributions;
Do keep in mind that these are only part of our services, listed here as an example. Our accountants are authorized by CECCAR, the Body of Expert and Licensed Accountants of Romania.
Taxation in Romania and the main reporting obligations
Companies in Romania are subject to several taxes. Our team specializing in accounting in Romania lists some of these below for informative purposes:
- 16%: the corporate income tax rate for Romanian companies; the branch tax rate has the same value, and so does the capital gains tax rate;
- 5%: the withholding tax on dividends in case of non-resident companies; for resident companies, this withholding tax is 0%; the dividend withholding tax is increased starting with 2023, please see below;
- 19%: the standard value of the value-added tax; two other rates of 5% and 9% apply in case of certain types of goods and services (for example, the 5% rate applies in case of hotel accommodation, restaurant, and catering services, medicines for human and veterinary use and others);
- 2,25%: the social security contribution an employer is required to pay out of the total gross salary, per employee; a pension contribution of 4% pr 8% also applies in addition to the social security contribution.
The tax year in Romania is usually the same as the calendar year. Corporate income tax is due by the 25th day of the third month following the end of the tax year (for companies that follow a calendar year, this would be the 25th of March).
New fiscal changes entering into force in 2023
The Fiscal Code has been subject to several important amendments, and the changes will enter into force starting on January 1st, 2023.
Our Romanian accountants briefly list the most important changes below:
For micro companies:
- the micro company can no longer be subject to the lower taxation regime of 3% on its turnover if it does not have any employees; the company will need to hire at least one employee and thus will be subject to the 1% tax on its turnover, a special regime for micro-companies;
- the option micro-company will no longer be able to carry out consulting activities; our team can give you more details on the scope of this provision;
- the dividend withholding tax increases from 5% to 8%; this is an important change that will impact small business owners.
Other changes for micro-companies will also concern their social security contributions, according to the amount of distributed dividends.
If the amount:
- is between 6-12 salaries – social security contributions are paid at the calculation base of 6 salaries;
- is between 12-24 minimum salaries – social security contributions are paid at the calculation base of 12 salaries,
- is over 24 minimum salaries – social security contributions are paid at the calculation base of 24 salaries.
For the purpose of social security contributions, our team can provide foreign investors in Romania with clarifications concerning the CASS and the CAS contributions.
As seen above, micro-companies are a category that is subject to several important changes. Our team can provide you with additional information on this subject, and can help you comply with the latest fiscal changes if your chosen business form is a micro-company.
Self-employed individuals are also affected by the 2023 fiscal changes. Our accountants in Romania briefly list some of these changes below:
- starting with 2023, the income threshold is changed from EUR100,000 to EUR 25,000; after this amount, the change of the taxation regime becomes mandatory;
- self-employed individuals can be subject to an exemption from the payment of CAS, however, as listed above, the CASS contributions are mandatory and different according to income calculated as the number of minimum wages.
As part of the 2023 fiscal changes our team also mentions that the base minimum wage has been increased to RON 3,000, gross income (increased from 2,550 lei gross income). However, an emergency ordinance issued by the Government also provides for a temporary salary tax exemption for the employer, meaning that 200 of the 3,000 lei are tax-exempt. Our team can give you more information about this important change if you run a business in Romania and hire employees.
The latest fiscal changes can prompt business owners to rethink the way in which they do business. One solution can be to change the existing business form, especially in the case of sole traders (PFA) who estimate that they will earn more than the new prescribed income threshold.
Changing the business form is possible, however, this is a decision to be made only after taking into account different aspects and after proper consultation with a team of accounting and company formation experts such as our own.
Our team can give you more details about the 2023 fiscal changes, the new applicable taxes, and your options if you are considering making important changes to your business form.
The principles of accounting in Romania as well as those for taxation have been subject to changes, especially in the context of the 2020 special provisions for the filing dates, as part of the support measures offered by the authorities for companies with financial difficulties.
If you would like to know more about our services relating to accounting in Romania, please reach out to our agents.