Taxes in Europe Database v2
Law No. 580/2004, as last amended by Act No. 499/2010.
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 exempt.
Day-care for children is exempt if 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 handicaped employee is 5% of the assessment base.
Health insurance is paid monthly (advance payments), however payments settlement exist since year 2006.
Health insurance companies.