| Personal Income Tax Rates – Employment Income |
Income tax rate: 10% except for dividends which are taxed at 5% |
| Tax rate |
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| Tax period |
Calendar year |
| Tax residency / Domicile according to domestic law |
For an individual to be considered a Romanian tax resident, he/she should fulfill at least one of the following conditions: – is domiciled in Romania; – the center of vital interests is in Romania; – is present for more than 183 days during any consecutive 12 months period in Romania; – is a Romanian citizen who works abroad as an official or employee of the Romanian state performing activity in a foreign state. For establishing the tax residency position, a tax residency questionnaire must be submitted within 30 days after 183 days effectively spent in Romania. At departure, a similar questionnaire must be submitted no later than 30 days before the departure. |
| Tax registration |
Before registering with the tax authorities, the individual should first register with the Romanian Immigration Office. Based on the personal identification number issued by the Immigration authorities, the tax registration must be performed with the Romanian Tax Authorities by submitting a specific form accompanied by supporting documents. |
| Employment income definition |
All income in cash and/or in kind (i.e. bonus, cost of living allowance, per-diems) obtained by a resident or non-resident individual carrying out an activity based on the individual employment contract, a service report, an assignment letter or a special statute provided by the law. |
| Examples of tax exemption |
– Employment income obtained from non-Romanian employers in respect of work performed outside of Romania; – Per-diem (within certain limits), business related travel, relocation and housing cost, under certain conditions; – Contribution for private pension fund supported by the employer for the employee in the limit of EUR 400 per year; – Voluntary health insurance premium, as well as medical services provided in the form of a subscription in the limit of EUR 400 per year supported by the employer for the employee. |
| Specific expatriate concession |
The Romanian tax non-residents are taxable in Romania only for the Romanian sourced income (i.e. rental income obtained from Romania, capital gains obtained from Romania). |
| Income of board members |
Treated as employment income (executive, as well as non-executive) |
| Tax returns |
In Romania, salary income is declared monthly. In case of the local employment agreement, the employer is liable for the monthly tax reporting and payment obligations. In respect of the foreign employment agreement, the individual is responsible for such liabilities. In case of social security contributions, there is also an option for the foreign employer to register for social security purposes in Romania. If an individual becomes tax resident in Romania, all his/her worldwide income (excepting the salary) should be declared by submitting an annual income tax return until March 15th of the following year in which the income is derived. |
| Tax payments |
If monthly in general before the 25th of the following month. If annually, by the 15th of March of the following year when the income was realized. |
| Tax on real estate property |
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| Social contribution (CSS) to be paid with tax |
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