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Generic Tax Name Personal income tax - Investments
Tax name in the national language Impozitul pe venituri din investitii
Tax name in English Tax on income from investments
Member State RO-Romania
Tax in force since 1998/01/01
If abolished, date on which the tax ceases to apply
Business version date 2012/01/01
Version date 2012/02/22
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

The 5th Chapter of the 3rd Title of the Fiscal Code, approved by Law nr. 571/2003 with subsequent amendments and completions.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





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Geographical Scope

Romania.

 
Taxpayers
Domestic-source income of non-residents is Taxed
Not Taxed
Comments

Employment incomes of married couples are Taxed jointly
Taxed separately
Comments


Comments

Resident natural persons.

 
Tax object and basis of assessment
As general rule, taxable income under personal income tax includes























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Income considered Domestic income
Worldwide income (subject to double-tax relief)
Comments

Benefits in kind
The following benefits in kind are usually (partially or fully) taxable












Comments


Comments

Incomes from investments.

 

The basis of assessment is the dividend, interest, annual net gain from the transfer of securities, gain from the transfer of social parts, annual net gain from sale-purchase operations of foreign currency on deadline, excess of distributions in money or in kind over the contribution of the beneficiary - natural person - to the social shared capita (incomes from the liquidation).

 
Deductions, Allowances, Credits, Exemptions
Deduction for professional expenses.
The deduction is:





Comments

Deductions from the tax base
The following items are usually (partially or fully) deductible

















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Allowances
The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents
Comments

Credits
The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents
There are tax credits for:

















Comments

Losses
Losses can be
Carried-forward for Indefinite
 Years
Carried-back for Indefinite
 Years
Transferred to spouse or partner
Comments

Exemptions
The following income is exempted from income tax























Comments


Comments

Exemptions:

  • interest income distributed to members of Mutual Aid Houses based on the social fund owned;
  • incomes obtained from the first transaction with shares issued by the "Proprietatea" Fund by the natural persons to which such shares were issued to, in accordance with Title I and Title VII of the Law No. 247/2005 regarding the reform in the fields of ownership and justice and some associated measures as subsequently modified and completed;
  • income from holding and trading of state bonds and/or bonds issued by local authorities;
 
Rate(s) Structure
The following personal income tax rates apply to aggregate annual income (allowances not included)
Bracket 1 From   EUR/Natcur
To   EUR/Natcur
Rate:
Comments

Regional taxes
Regional taxes are (rate in capital region) A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Local/municipal taxes
Local taxes are (rate in capital city) A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Special surcharges
There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Separate taxation
Separate taxation applies to the following items: Employment income
Income from business or self-employed activities
Income from sport and entertainment activities
Benefits in kind (company car, meal cheques, etc)
Pension income
Owner-occupied immovable property
Dividends
Interests from government bonds
Interests from corporate bonds
Interests from special saving accounts
Interests from deposits
Royalties
Income from renting immovable property
Income from renting movable property
Capital gains on immovable property
Capital gains on movable property
Inheritance
Annuities from life insurance
Prizes and awards
Scholarships
Income from occasional activities
Revenues from donations and gifts
Revenues from lotteries and games activities
Comments

Withholding taxes
The tax is withheld when paid to residents on: Dividends:
Final Creditable
Interests from governments bonds:
Final Creditable
Interests from corporate bonds:
Final Creditable
Interests from special saving accounts:
Final Creditable
Interests from deposits:
Final Creditable
Comments


Comments

Rate : 16%


(1) Incomes in the form of dividends, including amounts received as a result of holding participation titles in closed investment funds, are to be taxed with a rate of 16% of the amount of such incomes. Legal persons are required to compute and to withhold tax on incomes in the form of dividends at the same time as the payment of such dividends to shareholders or partners.

(2) Incomes in the form of interest for the deposits set up, saving instruments acquired or civil contracts concluded starting with 1st of January 2007 are to be taxed with a rate of 16% of the amount of such incomes.

(3) The computation, withholding, and remittance of the tax on incomes from investments, other than those provided in paragraph (1) and (2), are to be performed as follows:

a) in the case of gain from the transfer of the right of ownership to securities, other than social parts and securities in the case of closed companies, a tax rate of 16% shall apply, tax being a pre-payment in the account of the annual tax owed.

b) in the case of gain from the transfer of the right of ownership to securities, in the case of closed companies, and from the transfer of social parts, the obligation to compute, withhold and remit the tax lays with the acquirer. The computation and withholding of tax by the acquirer is to be made when the transaction is concluded, based on the contract between the parties. The tax is to be determined by applying the 16% tax rate to the gain, for each transaction, this tax being final.

c) the gain from sale-purchase operations of foreign currency on deadline, based on a contract, as well as any other similar operations, other than the ones with financial instruments transacted on markets authorized or supervised by the National Commission of Securities, is to be taxed at 1% for each transaction, the withheld tax being a pre-payment in the account of the annual tax owed. The annual tax to be paid is determined by the taxpayer by applying the 16% tax rate to the annual net gain of each taxpayer, determined in accordance with art. 66, paragraph (7);

d) the taxable income obtained from liquidation of a legal person by shareholders/associates physical persons is to be taxed at 16%, the tax being final tax.

(4) Losses recorded from transaction with securities, other then social parts and securities in closed companies, incurred during fiscal year, shall be compensated at the end of fiscal year with the earnings of the same nature realized from trading securities, other then social parts and securities in closed companies, during that year. If after such compensation an annual loss is registered,  it will be carried forward only to the next 7 year. Losses recorded from transactions with social parts and securities in closed companies are not recognized from fiscal point of view, are not compensated or carried over.

 
Tax due date

By the 25th of the month following the one in which the payment is made/ until the date when the documents for the transcription of the ownership right on the social parts or securities are submitted to the trade register or in the register of shareholders / until the date when the final financial report is submitted to the trade register.

 
Tax collector

The state budget.

 
Special features

 
Economic function







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Environmental taxes



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Tax revenue
ESA95 code d51mc+d51md+d51mg+d51ok(d51ac+d51ad+d51ag+d51bk)

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2010 414.04 EUR 0.33
2009 376.94 EUR 0.31
2008 681.80 EUR 0.48
2007 671.70 EUR 0.54
2006 423.00 EUR 0.43
2005 239.20 EUR 0.30
2004 107.20 EUR 0.17
2003 86.10 EUR 0.16
2002 77.00 EUR 0.16
2001 74.00 EUR 0.16
2000 29.30 EUR 0.07

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