Taxation of international executives
Are there social security/social1 insurance taxes in Romania? If so, what are the rates for employers and employees?
|Type of insurance||Paid by employer||Paid by employee||Total|
|Social security*||Normal working conditions 15.80%||10.50%||26.30%|
|Hard working conditions 20.80%||31.30%|
|Special working conditions 25.80%||36.30%|
|Medical leaves and allowances**||0.85%||0.00%||0.85%|
|Accidents at work and professional diseases insurance||0.15% - 0.85%||0.00%||0.15% - 0.85%|
|Employees salaries guarantee fund||0.25%||0.00%||0.25%|
* The basis for applying the social security contribution is capped to 5 times the average gross salary at national level (RON 2681 until January 2017 inclusively) until January 2017 inclusively. No cap is applicable for the income derived as of 1 February 2017.
**The basis for applying the health insurance contribution is capped to 5 times the average gross salary at national level (RON 2681 until January 2017 inclusively) for January 2017 only. No cap is applicable for the income derived as of 1 February 2017.
*** Capped at 12 times the minimum salary (RON 1050 until April 2016, RON 1250 for May 2016 – January 2017, RON 1450 as of February 2017).
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.
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.
Are there real estate taxes in Romania?
Yes. Owners of land, buildings, and automobiles are liable to local taxes.
Are there sales and/or value-added taxes in Romania?
Romanian VAT is currently 19 percent.
Are there unemployment taxes in Romania?
See social security section.
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.
1Romanian Social Security Laws, no. 76/2002, no.158/2005, no. 95/2006.
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