Accounting obligations for foreign companies in Romania

Every Romanian company — regardless of whether its owners are Romanian or foreign — is subject to the same accounting and fiscal obligations under Romanian law. For foreign investors, understanding these obligations early is essential: they begin from the moment the company is registered, and non-compliance carries real financial consequences.

1. Who must keep accounting records

Romanian law requires all legal entities registered in Romania to maintain accounting records from the date of their registration. There is no minimum activity threshold and no grace period: the obligation starts with the company itself.

This applies to all common structures used by foreign investors in Romania, including:

• SRL (Societate cu Răspundere Limitată) — the Romanian limited liability company, the most common form for foreign investors
• SA (Societate pe Acțiuni) — joint-stock company, typically used for larger operations
• Branches (sucursale) of foreign companies registered in Romania
• Representative offices, subject to specific and more limited obligations

Even if the company has no activity in a given period, accounting records must be maintained, nil declarations must be filed and deadlines must be observed. Inactivity does not suspend compliance obligations.

2. Monthly accounting and tax obligations

Most Romanian companies have recurring monthly obligations. The specific obligations depend on the company's VAT status, tax regime, payroll situation and activity type, but the standard monthly cycle typically includes:

Missing monthly deadlines results in late filing penalties and, in some cases, late payment interest. Romanian fiscal authorities (ANAF) apply these automatically.

3. Quarterly obligations

Some companies — particularly those in the microenterprise tax regime or those with quarterly VAT reporting — have quarterly rather than monthly filing cycles for certain declarations.

The microenterprise tax (impozit pe veniturile microîntreprinderilor) is declared and paid quarterly by the 25th of the month following the quarter end. Companies subject to standard corporate income tax (impozit pe profit) may have quarterly advance payments or prepayments depending on their situation.

VAT reporting period — monthly or quarterly — is generally determined by the company's VAT registration type and can be adjusted under certain conditions.

4. Annual obligations

All Romanian companies must prepare and submit annual financial statements. The annual obligations typically include:

• Annual financial statements (bilanț) — prepared under the accounting framework applicable to the entity and filed electronically with ANAF. Under the rules applicable to financial year 2025, companies governed by Companies Law no. 31/1990 had a statutory deadline of 31 May 2026, moved to the next working day because 31 May was non-working.
• Corporate income tax annual declaration (Decl. 101) — the exact deadline depends on the fiscal year and the rules applicable to that reporting period. For calendar-year 2025 taxpayers covered by the general extension, ANAF announced 25 June 2026.
• Annual reporting package — may include notes, the administrators' report, audit or statutory-auditor documents where applicable, and the proposed allocation of profit or coverage of losses.
• Transfer pricing documentation — required for companies with transactions between affiliated parties above certain thresholds.

5. VAT in Romania

Value Added Tax (TVA in Romanian) is one of the most consequential fiscal areas for foreign-owned companies operating in Romania. Understanding when VAT registration is required — and what it means operationally — is essential from the beginning.

Mandatory VAT registration threshold

From 1 September 2025, the domestic small-business VAT exemption threshold is 395,000 RON. A company that exceeds the threshold must follow the registration timing rules in force at the date of the transaction that causes the threshold to be exceeded.

Voluntary VAT registration

Companies can register for VAT voluntarily even before reaching the threshold. This is often advantageous for companies that purchase goods or services subject to VAT, as it allows VAT deduction from the outset.

Intra-community VAT considerations

Intra-community acquisitions and services can trigger separate VAT registration and reporting rules independently of the domestic turnover threshold. The treatment should be checked before the first relevant transaction because it depends on the transaction type and the parties' VAT status.

VAT reporting

VAT-registered companies file monthly or quarterly VAT returns (Declaration 300) and a domestic transaction summary (Declaration 394). Companies engaged in intra-community transactions also file the recapitulative statement (Declaration 390).

6. Payroll-related accounting obligations

For foreign-owned companies that employ people in Romania, payroll creates its own layer of accounting and reporting obligations — separate from but interconnected with general accounting:

• Payroll calculations — monthly salary calculations, including gross-to-net computations, income tax, social security contributions (CAS) and health insurance contributions (CASS) for both employee and employer.
• Payroll declaration (Declaration 112) — filed monthly by the 25th, reporting salary payments, withheld taxes and social contributions for each employee.
• REGES-ONLINE reporting — employment contracts and the reportable changes, suspensions or terminations must be recorded through REGES-ONLINE within the applicable deadlines. The former ReviSal application is no longer operational from 1 January 2026.
• Payroll documentation — payroll calculations and employee-level records should clearly document gross pay, deductions, contributions and net pay.
• Employer contributions — Romanian employers pay social contributions (CAM) on top of gross salaries. These must be calculated and paid by the monthly deadline.

Payroll errors or late filings can result in employee complaints, authority audits and financial penalties. For foreign-owned companies, payroll is often the first compliance area where problems appear — particularly when set up by parties unfamiliar with Romanian-specific requirements.

7. Document retention requirements

Romanian law imposes specific retention periods for accounting and business documents:

• Mandatory accounting registers and supporting documents — generally 5 years, calculated from 1 July of the year following the financial year in which they were prepared.
• Payroll statements — included in the general 5-year period under the current wording of Accounting Law no. 82/1991.
• Annual, consolidated and interim financial statements — 10 years.
• Other tax, corporate and employment documents — may be subject to separate retention periods, depending on their nature and the applicable legislation.

Accounting records can be retained electronically when the applicable integrity, accessibility and reproduction requirements are met. Documents governed by separate corporate, employment, legal or notarial rules should be reviewed individually.

8. Fiscal inspections and penalties

ANAF (Agenția Națională de Administrare Fiscală), Romania's national tax authority, has the right to conduct fiscal inspections covering any period within the statute of limitations (generally 5 years, extended to 10 years in cases of fraud). Foreign-owned companies are not exempt from inspection and are subject to the same procedures as Romanian-owned companies.

Penalties for accounting and fiscal non-compliance in Romania include:

• Late filing penalties — fixed amounts that increase with the duration of the delay.
• Late payment interest — calculated daily on outstanding amounts.
• Surcharges — additional penalties for certain types of fiscal irregularities.
• Suspension of VAT registration — in cases of repeated or significant non-compliance.

For foreign-owned companies, an unresolved compliance issue can also affect the parent company's reputation and complicate future transactions involving the Romanian subsidiary.

9. What this means in practice for foreign owners

The accounting framework described above is not exceptionally complex by European standards — but it is specific. Several aspects catch foreign companies off guard when they first establish a Romanian presence:

• Deadlines are strict and apply from day one. There is no adjustment period. The 25th of the month is a hard deadline for most recurring obligations, and Romanian fiscal authorities apply penalties automatically.
• The microenterprise regime has conditions. Some foreign investors assume their Romanian company will automatically benefit from the microenterprise tax rate. In practice, eligibility depends on revenue, ownership, activity type and other criteria that must be reviewed carefully.
• Document flows need to be established from the start. Accounting in Romania requires physical and electronic documents from the company's operations — invoices, contracts, bank statements, payroll inputs and more. These flows must be organised before the first fiscal deadline, not when the first audit request arrives.
• Managing accounting remotely without local support is high-risk. Romanian fiscal declarations require local knowledge, correct document formats and familiarity with ANAF's online submission systems. Remote management without a reliable local accounting partner significantly increases the risk of errors and missed deadlines.

10. How Consultrio manages this for foreign companies

Consultrio handles the full accounting and tax compliance cycle for foreign-owned companies operating in Romania — from initial setup through recurring monthly, quarterly and annual obligations. Our role is to ensure that all deadlines are met, all declarations are filed correctly and all document flows are in order, so that foreign owners and management teams can focus on operations rather than compliance.

We work in English and Spanish, which means you receive explanations, summaries and communication in a language you understand — not just documents filed with Romanian authorities. We also coordinate with our clients' other advisors and with relevant Romanian institutions when required.

Frequently asked questions