The main taxes and rates in Romania in 2022
В Румынии есть НДС, разные налоговые системы и налоговые ставки. В этой серии постов разберем основные налоги в Румынии и ставки по ним.
VAT persists in Romania. There are different tax systems and rates. In this series of posts, we will look at the main fees and fees.
We made a request to our expert, in order to receive a concise but concrete answer on the topic "Taxation in Romania and related taxes"
Part 5. Personal income tax
In the first part we talked about taxes on microenterprises, land, donations and other taxes. In the second, we talked about VAT and started to get acquainted with Romanian tax rates. In the third part, we continued the topic of taxes and told what types of income tax apply. In the fourth, we talked about corporate income tax/corporate tax. Today we finish the topic of taxes in Romania and talk about VAT/sales tax and personal income tax.
Personal income tax
- VAT/Sales tax is 19% (as of 2017);
- A reduced rate of 9% applies to books, newspapers, medicines, hotel services, museum and cinema tickets.
- Building materials is 5%
The medical, financial and banking services and education are exempt from VAT
- If a company purchases goods in the EU or its annual revenue exceeds €100 thousand, then VAT reporting must be submitted monthly. If the company's revenue is less than €100 000 or it has not purchased goods in the EU, then the return must be submitted quarterly. If the tax authority allows, the company is entitled to file reports once or twice a year.
- The VAT return must be filed no later than the 25th day of the month following the expired report. The return, which reflects transactions involving the purchase and sale of goods in Italy, runs from the recent 30th of the month in the period. The volume of purchases or EU proposal in the interior exceeds 900 thousand Romanian lei, then the reports must be registered.
- Intrastat - is a European system for recording trade between EU countries. Romanian companies cooperating with contractors from other EU countries are obliged to submit monthly statistical reports. Reports must be submitted no later than the 15th day of the month following the month in which the company carried out transactions.
Personal income tax / personal income tax - is 10% (from 2018).
The 10% tax applies to both residents and non-residents. It applies to the following types of income:
- Business income.
- Income from agricultural work
- Income from the transfer of use rights.
- Income from the profit of cash investments/investments.
- Income from wages.
- Profits from pensions (with a deduction of 2000 lei per month (approximately $475)).
- Income in the form of prizes and winnings.
Income tax and social security contributions must be paid, and the corresponding declaration must be submitted no later than the 25th of the month following the month in which the salary was paid.
The basic taxes and rates in Romania in 2022