Taxes in Europe Database v2
Law No. 580/2004, as last amended by Act No. 499/2010
- Individuals - employee, self-employed
- State - pays social insurance on behalf of selected groups of persons
- Self-payers (they pay mandatorily) e.g voluntary unemployed persons
Labour incomes and dividends.
- employee & employer: monthly gross wage or salary of the employee
- self-employed: last known personal income tax base (from previous PIT period) divided by 2.14 and then by 12 to get the monthly value
- self-payers: arbitrary level, although they must respect maximum and minimum assessment bases set by the law
Meal cheques are tax exempt.
Day-care for children is tax exempt if this activity is provided in employer`s facilities.
The law sets a minimum and a maximum health insurance assessment base. The minimum assessment base, in a particular month, is equal to 44.2% of average wage (AW)(t-2). The maximum assessment base is linked to the last known average wage in the economy (AW)(t-2) - it is equal to 3 x AW(t-2).
Rate applied to physically handicapped employee is 2% form the assessment base.
Rate applied to self-employed is 14% from the assessment base (7% for physically handicapped).
Health insurance is paid monthly (advance payments), however payments settlement exist since year 2006.
Health insurance companies.