PFA vs SRL Calculator – 2026

TL;DR

This is a scenario calculator for Romanian contractors comparing PFA vs SRL (FY2026).

Use it to answer one practical question:

“Given my revenue and realistic expenses, what’s the expected net after taxes + admin costs, and which structure fits my goals?”

This is a numbers-first tool, but the best decision is numbers + constraints (client requirements, risk tolerance, admin appetite). For a full decision framework:

• Guide

2026 changes that matter (quick context)

• Dividend tax is 16% for dividends distributed starting 1 Jan 2026.
• Standard VAT is 21% and reduced VAT is 11% (verify your case).
• Minimum wage used for thresholds is 4,050 RON until an official 2026 update is published.

PFA vs SRL (in one minute)

PFA (sole trader)

Often preferred when you want:

• speed and simplicity
• predictable monthly cashflow
• low admin overhead

SRL (limited liability company)

Often preferred when you want:

• credibility for certain clients
• a structure that supports reinvestment and growth
• clearer separation between “business money” and “personal money”

Both can be “good”. The wrong choice usually happens when people optimize taxes but ignore:

• compliance workload and deadlines
• client procurement requirements
• cashflow volatility and buffers

Who this is for

• IT contractors switching from CIM to B2B.
• Contractors deciding whether to stay PFA or incorporate an SRL.
• Anyone validating tax “hacks” they heard online.
• People planning a relocation or changing residency but still invoicing Romanian clients (double-check with an accountant).

What you should prepare before using the calculator

To get useful results, don’t guess wildly. Use realistic inputs:

• Revenue: expected yearly invoiced amount (not “best case”).
• Expenses: include everything you actually pay:
  • accounting + banking
  • equipment + software
  • coworking/home-office costs
  • travel, conferences, certifications
  • insurance (if any)
• Payout preference: do you want predictable monthly cashflow, or are you comfortable with more “batchy” payouts?
• Client mix: one big client vs multiple clients (risk profile differs).

How to use it (step-by-step)

1. Set your annual revenue close to reality (use a conservative estimate if you’re unsure).
2. Set your annual expenses realistically (don’t undercount; it ruins the comparison).
3. Choose your priorities:
   • simplicity
   • maximizing take-home
   • reinvestment / growth
   • credibility / procurement readiness
4. Compare the output:
   • estimated “net after taxes & overhead”
   • qualitative recommendation (why a structure may fit you better)

How to interpret results (don’t stop at the “net”)

1) Net difference is only one axis

If the net difference is small, then constraints dominate:

• will your client only contract with SRL?
• do you want limited liability?
• do you want to hire subcontractors later?
• do you want predictable cashflow and minimal admin?

2) Time is a real cost

Admin overhead can quietly destroy your effective hourly rate. If PFA saves you 2 hours/week vs SRL accounting/admin, that can be worth more than a small net delta.

3) Cashflow matters more than tax theory

Many people choose “optimal” structures and then run into:

• delayed payments
• large “once per period” tax bills
• no buffer for sick days or breaks

A sustainable structure is one you can run comfortably for 12–24 months without stress.

Worked scenarios (contractor reality)

Scenario 1: first year contractor (keep it simple)

If you’re coming from CIM and you want:

• fast setup
• low mental load
• predictable monthly payouts

PFA often fits better early — even if SRL might look “better” at high income on paper.

Scenario 2: high expenses / reinvestment mindset

If you:

• buy equipment and software
• invest in training and travel
• plan to reinvest rather than maximize personal payout

SRL often becomes more attractive, especially if you plan structured reinvestment and want clean bookkeeping.

Scenario 3: client procurement pressure (SRL forced choice)

Some clients (especially larger organizations) will prefer SRL for:

• procurement processes
• vendor risk management
• invoicing requirements

In that case, “net optimization” is secondary: the SRL is the price of access to that demand.

Scenario 4: “one client, long-term” (risk + optics)

If you have one long-term client, evaluate:

• contract terms (notice periods, payment terms)
• your risk tolerance
• whether you need a structure that supports better separation and documentation

Common myths to avoid

• “SRL is always better above X income.”
  Not necessarily. Expenses, payout strategy, and admin costs matter.
• “PFA is always simpler.”
  Usually yes, but your reality depends on the type of work, client requirements, and whether you need VAT/e-Factura workflows.
• “Taxes are the only lever.”
  The biggest lever is often rate × billable hours × payment discipline, not micro-optimizations.

What to do next (recommended path)

If you lean PFA

• Taxes and annual filing and Declarația Unică (2026)
• Guide

If you lean SRL (or must use SRL)

• VAT math + Extract VAT (2026) + Add VAT (2026)
• Invoice PDF (quick) and Proforma PDF (quick)
• Open e‑Factura XML and Validate e‑Factura XML

FAQ

Do you cover every 2026 threshold and special regime?

No. This is a practical estimator. It’s versioned by fiscal year for clarity, but always confirm with an accountant before you commit.

What’s the biggest mistake contractors make?

Underestimating admin + cashflow risk. Build a buffer and keep compliance simple enough that you’ll actually do it consistently.

Should I choose based on “max net” only?

No. Choose based on net and constraints (client requirements, risk, workload, reinvestment plans).

Sources

• Law 141 (2025) (tax updates incl. dividend tax): https://legislatie.just.ro/Public/DetaliiDocument/302804
• Government Decision 1506 (2024) (minimum wage): https://legislatie.just.ro/Public/DetaliiDocument/293933
• ANAF: https://www.anaf.ro/

Next steps (IT Jobs List)

For taxes, consistency wins: same assumptions, same period (year/month), plus a small buffer for the unexpected.

Related tools

Related guides

Quick recommendation

• Save your assumptions (rates, breaks, thresholds) so you can reproduce the result.
• If you use the output in an invoice/offer, include a short explanation (what’s included and what’s not).

Practical checklist (IT Jobs List)

• Run 3 scenarios: conservative / realistic / optimistic (annual income, expenses, contributions).
• Set aside a buffer (e.g., 5–10%) for variability and deadlines.
• Keep a simple document checklist: invoices, contracts, bank statements, payments log.