Dividend tax in Romania (2026): the 10% withholding and CASS on dividends

The headline: 10% dividend tax

When a Romanian company distributes profit to its shareholders, it withholds 10% dividend tax at source. The shareholder receives the remaining 90%.

This sits on top of the tax the company already paid: 1% micro-company tax on revenue, or 16% corporate income tax on profit if it is outside the micro regime.

CASS on dividends

Dividends are also subject to CASS (the health contribution) at 10%, but only above an annual threshold and up to a cap. The base is your dividend income, and CASS is capped at the equivalent of 24 minimum wages.

So the effective burden on dividends is not just 10% — for higher amounts, CASS adds another slice.

A worked illustration

• •Distribute 100,000 RON: 10% dividend tax = 10,000 RON, so 90,000 RON reaches you.
• •If that dividend income exceeds the CASS threshold, add 10% CASS on the relevant base.
• •CASS is capped, so very large distributions do not attract unlimited health contributions.

Why the total can surprise people

Add it up: micro-company tax (1% of revenue), then 10% dividend tax, then potentially CASS. Taking money out of a company as dividends is rarely just a 10% cost, which is why the salary-versus-dividend split matters.

Legitimate ways to keep more

• •Balance a salary (deductible for the company) against dividends.
• •Reinvest profit instead of distributing it every year.
• •Time distributions across tax years where thresholds apply.
• •Keep the company within the micro regime if revenue and activity allow.