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.
© 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.