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Romania - Other taxes and levies
Romania - Other taxes and levies
Taxation of international executives
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% Special working conditions 8% |
25% | 25% |
| 29% | |||
| 33% | |||
| Health insurance | -% | 10% | 10% |
| Work insurance contribution* |
2.25% | 2.25% |
*As of 1 January 2018, the work insurance contribution is due by the employer (2.25 percent). The contribution is intended to finance the social security benefits as follows: unemployment indemnities (17 percent), medical leave indemnities (21 percent), indemnities granted to employees as a result of a work accident or professional disease (2 percent) and supply for the guarantee fund for employment debts (12 percent). The 48 percent 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/jurisdiction 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 2 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/jurisdiction’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.
Footnote
1 Romanian Social Security Laws, no. 76/2002, no.158/2005, no. 95/2006.
Disclaimer
All information contained in this publication is summarized by KPMG in Romania, the Romanian member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the New Romanian Tax Code, Law no. 227/2015 in force beginning 1 January 2016.
© 2020 KPMG România S.R.L., o societate cu răspundere limitată de drept român, membră a reţelei de firme independente KPMG afiliate la KPMG International Cooperative („KPMG International”), o entitate elveţiană. Toate drepturile rezervate.
KPMG International Cooperative (“KPMG International”) este o entitate elveţiană. Firmele membre ale reţelei de firme independente KPMG sunt afiliate la KPMG International. KPMG International nu oferă servicii pentru clienţi. Nicio firma din reţeaua KPMG nu are autoritatea de a obliga KPMG International sau oricare altă firmă din reţeaua KPMG faţă de terţi, şi nici KPMG International nu are autoritatea de a obliga o altă firmă membră din reţeaua KPMG.
