Personal Income Tax in Romania

In Romania is personal income tax levied on income from these sources:
• independent activities
• salaries
• investments
• leasing of real estate properties
• pensions
• agricultural activities
• gambling and prizes
• transferring immovable property from personal patrimony
• other sources
Residents are taxed on their worldwide income. Non-residents pay tax only on Romanian source income. An individual is resident if the center of living is in Romania, or if staying in Romania for 183 days within 12 months. Married couples can file tax returns jointly or separately.

Tax due date
Income from salaries and wages - the tax must be paid before the 25 of the month that follows the month for which such incomes are paid.

Tax rate
Income is aggregated and taxed at a standard flat rate of 16 %.

The personal allowance is an addition of various types of expenditure. The personal tax allowances reduce income before calculating the tax due. Residents may deduct personal allowances, and the actual amount is regularly adjusted.
• the current personal allowance is 250 RON, but individuals earning more than 3 000 RON are not entitled to the personal allowance
• An additional allowance can be claimed for the taxpayer’s dependants (spouse and children) at 125 RON for each dependant.
• the total amount of the personal and additional allowances may not exceed 650 RON

Deductions at source
In Romania tax is deducted at source payments to non-residents: dividends, interest, royalties, the tax rate is 16 %.

Bc. Petr Gola

Knowledge topic: