Romania has the third-lowest tax on company profits of 31 countries, according to a study by UHY, an international network of accounting and consulting firms.

Romania’s 16% flat tax rate for company profits is only higher than those in the United Arab Emirates (EAU), where corporate profits are not taxed, and Ireland, where the tax rate is 12.5%.

Poland and the Czech Republic also have a relatively low tax rate of 19%, followed by Russia and Croatia, with 20%. At the other end, the highest tax rates for corporate profits are in the US (41.1%), Japan (38.6%), and France (37.8%).

The average tax rate in the 31 countries included in this study is 27.9% and the average for the European countries included is 25.3%.

editor@romania-insider.com