Direct taxes - Personal Income Tax

    Generic part

    Personal income tax
    Impozit pe venit
    RO - Romania
    RON
    Date
    Year
    1991/04/01
    2018/01/01
    2018/02/19 10:47:47

    Contact information

    Administration

    Service

    Website

    E-mail

    Telephone

    Who sets

    The tax rate is set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    The tax base is set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    The reliefs are set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    Beneficiary

    • Central authority
    • Regional authority
    • Local authority
    • Social security
    • Others

    Geographical Scope

    RO - Romania
    No Yes

    Taxpayers

    Who is liable for the tax?

    • Residents
    • Non-Residents

    Tax object and basis of assessment

    As general rule, taxable income under personal income tax includes

    • 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

    Income considered for residents

    Domestic income
    Worldwide income (subject to double-tax relief)

    Domestic-source income of non-residents is

    Taxed
    Not Taxed

    Employment incomes of married couples are

    Taxed jointly
    Taxed separately

    Benefits in kind

    • Company car
    • Low-interest loans
    • Stock options
    • Meal, sport, cultural cheques
    • Health insurance
    • Computer and IT services
    • Phone and telecommunications services
    • Parking
    • Public transport
    • Day-care for children
    • Meals at cantine
    • Accommodation

    Deductions, Allowances, Credits, Exemptions

    Deductions from the tax base

    • Child care expenses
    • Educational expenses
    • Sport activities expenses
    • Medical expenses
    • Travel expenses
    • Interest on mortgages
    • Capital from mortgages
    • Interest from loans other than mortgages
    • Alimony obligations under law
    • Donations
    • Contributions to supplementary pension or health insurance
    • Contributions to life insurance funds
    • Investments in companies located in specific regions or active in specific businesses
    • Investments in eco-friendly or energy-efficient goods
    • Investment in IT materials or e-services
    • Membership fees to Unions
    • National, regional or local taxes

    Deduction for professional expenses, in particular for employees

    • No deduction
    • A lump-sum amount:
    • In percentage of income:
    • Based on real expenses
    • Capped

    Deduction for professional expenses, in particular for self-employed

    • No deduction
    • A lump-sum amount:
    • In percentage of income:
    40 %
    • Based on real expenses
    • Capped

    Deduction for child care expenses

    • No deduction
    • A lump-sum amount:
    • In percentage of income:
    • Based on real expenses
    • Capped

    Allowances

      in EUR/National Currency or % of tax base

    Credits

      in EUR/National Currency or % of tax base
    • Child care expenses
    • Educational expenses
    • Sport activities expenses
    • Medical expenses
    • Travel expenses
    • Interest on mortgages
    • Capital from mortgages
    • Interest from loans other than mortgages
    • Alimony obligations under law
    • Donations
    • Contributions to supplementary pension or health insurance
    • Contributions to life insurance funds
    • Investments in companies located in specific regions or active in specific businesses
    • Investments in eco-friendly or energy-efficient goods
    • Investment in IT materials or e-services
    • Membership fees to Unions
    • National, regional or local taxes

    Losses

    • Carried-forward for
    • Indefinite
    7 Years
    • Carried-back for
    • Indefinite
    • Transferred to spouse or partner

    Exemptions

    • 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

    Rate(s) Structure

    Amount (from) Amount (to) Rate -
    10 %


    Regional taxes

    • A lump-sum amount:
    • A percentage of income:
    • A tax surcharge:

    Local/municipal taxes

    • A lump-sum amount:
    • A percentage of income:
    • A tax surcharge:

    Special surcharges

    Surcharge

    • A lump-sum amount:
    • A percentage of income:
    • A tax surcharge:


    Separate taxation

    • Employment income
    10 %
    • Income from business or self-employed activities
    10 %
    • Income from sport and entertainment activities
    • Benefits in kind (company car, meal cheques, etc)
    10 %
    • Pension income
    10 %
    • Owner-occupied immovable property
    • Dividends
    5 %
    • Interests from government bonds
    • Interests from corporate bonds
    10 %
    • Interests from special saving accounts
    10 %
    • Interests from deposits
    10 %
    • Royalties
    • Income from renting immovable property
    10 %
    • Income from renting movable property
    10 %
    • Capital gains on immovable property
    10 %
    • Capital gains on movable property
    • Inheritance
    • Annuities from life insurance
    • Prizes and awards
    10 %
    • Scholarships
    • Income from occasional activities
    10 %
    • Revenues from donations and gifts
    • Revenues from lotteries and games activities
    25 %

    Withholding taxes

    • Dividends
    5 %
    Final Creditable
    • Interests from government bonds
    Final Creditable
    • Interests from corporate bonds
    10 %
    Final Creditable
    • Interests from special saving accounts
    Final Creditable
    • Interests from deposits
    10 %
    Final Creditable

    Tax due date

    Tax collector

    General comments

    Economic function

    • Consumption
    • Labour Employed (paid by employers and employees)
    • Labour Non-employed
    • Capital income: corporations
    • Capital income: income of households
    • Capital income: income of self-employed
    • Capital stocks

    Environmental taxes

    • Energy
    • Transport
    • Pollution/resources

    Tax revenue

    d214c + d214h-c01 + d214j + d51a + d51b-c11 + d51d-c01 + d51e
    Year Annual tax revenue (in millions) % of GDP % of total tax revenue -
    2016
    28,803
    3.7644 %
    14.6021 %
    2015
    27,109.4
    3.8044 %
    13.5836 %
    2014
    24,495.8
    3.6638 %
    13.3379 %
    2013
    22,298.1
    3.509 %
    12.8489 %
    2012
    21,136.8
    3.5599 %
    12.814 %
    2011
    19,387.7
    3.4668 %
    12.2446 %
    2010
    18,029.8
    3.4131 %
    12.9242 %
    2009
    18,421.5
    3.4999 %
    13.7556 %
    2008
    18,749.6
    3.4847 %
    12.9647 %
    2007
    14,848.6
    3.4614 %
    12.2907 %
    2006
    10,249
    2.9536 %
    10.4025 %
    2005
    6,853.7
    2.3594 %
    8.5108 %
    2004
    7,315.9
    2.9411 %
    10.8048 %
    2003
    5,637.8
    2.8365 %
    10.2923 %
    2002
    4,139
    2.7118 %
    9.6826 %
    2001
    3,708.8
    3.1344 %
    10.9947 %
    2000
    2,802
    3.4475 %
    11.4526 %

    Footnotes