Total tax rate, which measures the amount of taxes and mandatory contributions to be paid by a company as percentage of its profit, stood at 38.4% this year in Romania, below the average of EU states (40.3%) and the global average (40.6%).
In terms of time to comply with fiscal legislation, Romania is among the top CEE countries, with 161 hours/year, compared with a regional average of 164 hours and a global level of 251 hours.
An average-sized company in Romania should carry out 14 tax payments annually, compared with a global average of 25.6 payments and a EU average of 11.8 payments.
“Many of CEE states have registered progresses in the last 12 months in terms of ease of paying taxes. (…) This proves that we are in a global competition regarding the ease of paying taxes and the reducing of the fiscal burden, and that Romania should continue and strengthen the positive fiscal measures taken in the previous years in order to become a more attractive destination for investments,” said Mihaela Mitroi, PwC Romania Tax And Legal Services Leader.
Paying Taxes study measures the “ease of paying taxes” for an average sized company, including corporate income taxes, employment taxes and mandatory contributions, property taxes, turnover taxes, property transfer taxes, road taxes, environmental taxes and other small taxes and a variety of smaller payments such as municipal taxes.