Taxation of international executives
The Romanian taxation of individuals depends upon their residence status. Generally, Romanian tax residents are liable to Romanian tax on their worldwide income, whereas non-Romanian tax residents are liable to Romanian tax on their Romanian-source income. This includes income received for services performed on Romanian territory. For the year 2020, the personal income tax rate is 10 percent (flat tax rate). Married individuals are taxed separately from their spouses (no joint filing applies in Romania).
The official currency of Romania is the Romanian Leu (RON).
Herein, the host country/jurisdiction refers to the country/jurisdiction to which the employee is assigned. The home country/jurisdiction refers to the country/jurisdiction where the assignee lives when they are not on assignment.
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.
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