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Generic Tax Name Personal income tax
Tax name in the national language Impozit pe venit
Tax name in English Personal income tax
Member State RO-Romania
Tax in force since 1991/04/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
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 3rd Title of the Fiscal Code, approved by Law no. 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





Comments

 
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 that carry out an activity on the basis of an individual labour contract or a special statute provided by law for wages;
  • Resident natural persons and non-resident natural persons that carry out independent activities in a permanent headquarter in Romania for tax on revenues from independent activities;
  • The owner, the usufructuary or other legal holder for tax on the revenues from cession of goods use;
  • Resident natural persons- for taxes on:  agricultural activities, revenues from prizes and gambling, incomes from investments, pension's income, income from transfer of real estate properties from the personal patrimony.
 
Tax object and basis of assessment
As general rule, taxable income under personal income tax includes























Comments

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 wages.

    Net income minus personal deduction given for that month, trade-union subscription of that month, the contributions to the optional pension funds so as for that year should not exceed 400 euro.
  • Incomes from agricultural activities,forestry and pisciculture income (fish-breeding).

    Net income determined on the income norms or on the real income based on data from the accountancy system.
  • Income from transfer of real estate properties from the personal patrimony.

    Income derived is the value declared by the parties in the act.
  • Incomes from independent activities. The independent activities include commercial activities, free professions and intellectual property rights, realized individually and/or in the form of an association, including incomes from adjacent activities.Net income based on income norms or on real income or on standard rate of expenditure.
  • Incomes from investments.

    The dividend, interest, annual net gain from the transfer of securities, others than registered shares and transferrable securities in case of closed companies, gains from the transfer of transferrable securities, in case of closed companies, and from the transfer of the shares, 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).

  • Tax on pensions income.

    The taxable base is to be determined by subtracting from the gross pension income a monthly non-taxable amount and the mandatory contributions computed (health contributions).
  • Incomes from prizes and gambling.

    Net income as difference between the incomes from prizes and the amount of the non-taxable income. The taxable base for gambling is the gross income.
  • Incomes from the grant of use of goods.

    Net income determined by deducting the expenses in a quantum of 25% from the gross income. The taxpayers may determine the net income from the grant of use of goods, other than income from the lease of agricultural assets, using bookkeeping.
    This category of income, includes incomes from renting for tourists rooms located in privately owned housing with an accommodation capacity of one to 5 rooms inclusive.
 
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

















Comments

The natural persons shall be entitled to the deduction from the monthly net income from wages of an amount as personal deduction, granted for each month of the taxable period only for the incomes from wages at the place of work of the main position.
The personal deduction shall be granted for the natural persons with a gross monthly income of up to RON 1,000, inclusive, as follows:
    - for taxpayers who do not have dependants - RON 250;
    - for taxpayers who have one dependant - RON 350;
    - for taxpayers who have two dependants - RON 450;
    - for taxpayers who have three dependants - RON 550;
    - for taxpayers who have four or several dependants - RON 650.

For the taxpayers who earn monthly gross incomes from wages between RON 1,000.01 and RON 3,000 inclusive, the personal deductions shall be reduced as opposed to the ones above and they shall be established by order of the minister of public finance.
For the taxpayers earning monthly gross incomes from wages over RON 3,000 the personal deduction shall not be granted.

The dependant may be the wife/husband, children or other family members, relatives of the taxpayer or of the wife/husband up to the second rank inclusive, the incomes of which do not exceed RON 250, irrespective of the fact that they are taxable or non-taxable.


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:

  • For incomes from independent activities.

    • Incomes from independent activities made by natural persons with serious or pronounced handicap.

    • For incomes on wages:
      • Personal deduction given only for the incomes made where the main function is;
      • Incomes from wages made by natural persons with serious or pronounced handicap, at the main function;
      • Incomes from wages, as a result of computer programs creation;
      • The amounts or the advantages received by natural persons from dependent activities carried out in a foreign state, no matter the fiscal regime of that state with some exceptions
    • For pensions income:
      • A monthly non-taxable amount (1,000 RON)
      • Incomes from pensions made by natural persons with serious or pronounced handicap;

 

  • For revenues from prizes:
    • Incomes derived from prizes in money and/or in kind, that are below the established non-taxable amount of RON 600 obtained by the taxpayer for each prize.

 

  • Tax on income from transfer of real estate properties from the personal patrimony

The tax shall not be payable in the following instances:

a) upon acquiring the ownership right over any sort of lands and constructions, by the restoration of the ownership right pursuant to special laws;

b) upon acquiring the ownership right as donation among relatives and in-laws up to the 3rd degree inclusive, as well as among spouses.

c) For the transfer of ownership right by inheritance, if the succession is debated and completed within 2 years time from the date when the author of succession died.

  • For investments :
      • income distributed to members of Mutual Aid Houses based on the social fund owned;
      • incomes from the first trading of the stocks issued by the "Property" Fund, by the natural persons to whom such stock were issued, under the terms of Titles I and VII of the Law No 247/2005 on the reform in the field of property and justice, as well as adjacent measures, as amended and supplemented.
      • incomes realised from the holding or trading of state securities and/or of bonds issued by administrative and territorial units.

 

  • For agricultural, forestry and fish-breeding activities
    • Incomes made by natural persons with serious or pronounced handicap;
    • Incomes derived by the natural persons/members of associations without legal personality from the capitalisation of the following products in their natural state:

a) products collected from the wild flora, other than the wood mass. In case of wood mass there shall be non-taxable incomes only the incomes derived from the exploitation and capitalisation thereof in maximum volume of 20 cubic metres/year from the forests owned by the taxpayers;

b) products captured from wildlife, except for those made from commercial fishing activity subject to taxation according to the provisions of Chapter II "Incomes from independent activities".

    • Incomes derived from agricultural activities within the limits set for vegetable products and animals.
    • Incomes derived from operation of natural pastures and meadows shall not be taxable incomes.
    • In case of natural persons/members of associations without legal personality, the cultivation of land with gramineous and leguminous fodder for green mass production used as fodder for animals held by those taxpayers for which income is determined based on income norms and on those which generate non taxable income.
 
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: 16.00 %
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 16.0 %
Income from business or self-employed activities 16.0 %
Income from sport and entertainment activities
Benefits in kind (company car, meal cheques, etc)
Pension income 16.0 %
Owner-occupied immovable property
Dividends 16.0 %
Interests from government bonds
Interests from corporate bonds 16.0 %
Interests from special saving accounts 16.0 %
Interests from deposits 16.0 %
Royalties
Income from renting immovable property 16.0 %
Income from renting movable property 16.0 %
Capital gains on immovable property
Capital gains on movable property 16.0 %
Inheritance
Annuities from life insurance
Prizes and awards 16.0 %
Scholarships
Income from occasional activities 16.0 %
Revenues from donations and gifts
Revenues from lotteries and games activities 25.0 %
Comments

revenues from lotteries and games activities: 1%, 16% and 25%


Withholding taxes
The tax is withheld when paid to residents on: Dividends: 16.00 %
Final Creditable
Interests from governments bonds:
Final Creditable
Interests from corporate bonds: 16.00 %
Final Creditable
Interests from special saving accounts: 16.00 %
Final Creditable
Interests from deposits: 16.00 %
Final Creditable
Comments


Comments

Standard rate: 16.00%

Exemptions:

  • Tax on income from transfer of real estate properties from the personal patrimony ;
  • Tax on revenues from gambling.
 
Tax due date

As a general rule by the 25th of the month following the one in which the payment is made, for tax withholding.

The anticipated payments shall be made in 4 equal instalments, by the 25th inclusive of the last month of each quarter and the differences of tax remaining to be paid according to the taxation decision shall be paid not later than 60 days from the date of communication of the taxation decision.

 
Tax collector

As a general rule the state budget, but for tax on income from transfer of real estate properties from the personal patrimony a 50% quota shall be income to the consolidated budget and a 50% quota shall be income to the budget of the territorial and administrative units on whose territory the immovable property which have made the object of alienation are located.

 
Special features

Detailed information about the different parts of PIT can be found in the separate PIT forms.

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d51mq (d51aq) + d51c1a + d51mb (d51ab) + d214ca + d51mf (d51af) + d51ma (d51aa) + d51da + d51mc (d51ac) + d51md (d51ad) + d51mg (d51ag) + d51ok (d51bk)+ d51me (d51ae)+ d51mh (d51ah)+ d51ea + d214ha + d214ja

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 4,731.44 EUR 3.54
2011 4,542.99 EUR 3.41
2010 4,254.99 EUR 3.36
2009 4,318.57 EUR 3.59
2008 5,057.51 EUR 3.55
2007 4,421.82 EUR 3.53
2006 2,885.27 EUR 2.93
2005 1,864.70 EUR 2.32
2004 1,735.72 EUR 2.83
2003 1,474.31 EUR 2.79
2002 1,287.11 EUR 2.64
2001 1,369.44 EUR 3.01
2000 1,327.33 EUR 3.25

Comments