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Romania - Other taxes and levies

Romania - Other taxes and levies

Taxation of international executives

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Social security tax

Are there social security/social1 insurance taxes in Romania? If so, what are the rates for employers and employees?

Employer and employee

Type of insurance Paid by employer Paid by employee Total
Social security* Hard working conditions 4% 25% 25%
29%
33%
Health insurance 5.20% 10% 10%
Work insurance contribution 2.25%*
     

*As of 1 January 2018, the work insurance contribution is due by the employer (2.25%). The contribution is intended to finance the social security benefits as follows: unemployment indemnities (20%), medical leave indemnities (40%), indemnities granted to employees as a result of a work accident or professional disease (5%) and supply for the guarantee fund for employment debts(15%). The 20% difference represents income at the state budget which is directed in a separate account.

As of 2016, where the employer is resident of a country which is not covered by the EC Regulation 883/04 or with which Romania has no bilateral agreement on social security coordination, it is the individual’s responsibility to declare and pay the full social security contributions.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in Romania?

If the inheritance procedure is finalized within two years from the death of the predecessor, no tax is due. Otherwise, a 1 percent tax is due on the value of the inheritance. No tax on gifts or wealth exists as such.

Real estate tax

Are there real estate taxes in Romania?

Yes. Owners of land, buildings, and automobiles are liable to local taxes.

Sales/VAT tax

Are there sales and/or value-added taxes in Romania?

Romanian VAT is currently 19 percent.

Unemployment tax

Are there unemployment taxes in Romania?

See social security section.

Other taxes

Are there additional taxes in Romania that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

No.

Foreign Financial Assets

Is there a requirement to declare/report offshore assets (e.g., foreign financial accounts, securities) to the country’s fiscal or banking authorities?

Currently, there is no requirement to declare offshore assets. Where the offshore asset generates income, this income would have to be declared in Romania in the case of Romanian tax residents and taxed accordingly.

Foot Note

1Romanian Social Security Laws, no. 76/2002, no.158/2005, no. 95/2006.

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