Dividend Distribution in Romania from January 1, 2025

Entrepreneurs in Romania frequently ask about the timing of dividend distributions when starting a new company. They want to understand when they can access their company's profits through dividends. Shareholders aim to receive their share of profits as quickly as possible.

One of the common concerns for new entrepreneurs in Romania is the timing for a new company to distribute dividends. It is natural for business owners to be curious about the speed at which they can access their company's profits through dividends. Shareholders typically aim to receive their share of the profits at the earliest opportunity.

Romanian law allows new companies to distribute dividends quickly if they have profits. Let's look at how this works in practice.

Rules for Romanian Companies Paying Dividends

Romanian laws in 2024 let companies pay dividends yearly after approving financial statements, or quarterly throughout the year.

A new Romanian company can pay dividends soon after creation if it has profits. Companies can't pay dividends if they're losing money.

The procedure regarding the exemption from income tax for IT employees&employer  was modified by Order of the Ministry of Finance no. 835/2015 which replaces the old legal framework (MFP Order no. 1479/2013 – repealed). The new regulations stipulate that the employees in this sector may be exempt from income tax only if they occupy certain positions, as defined by the law.

Starting July 30, the alumni working in this sector must be in one of the eight functions, as defined in the Annex of the Order 835/2015: