Romania - Tax Guide for Freelance Contractors
Welcome to our guide to Romanian Taxation. You will find a wealth of information which will be useful if you plan to work in, or place consultants in, Romania.
Our tax guides give a general overview of the actual taxation rates and rules at the time of writing. There are of course many ways to legally reduce tax or social security burdens in Romania. Please contact us for more information or an actual breakdown of your situation, and to find out more about our range of payroll and contact management services in Romania.
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Romanian Income Tax
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Umbrella and Contract Management Services in Romania
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Tax residents in Romania: are liable to pay Romanian tax on their worldwide income,
Non tax residents in Romania: are liable to pay tax on their Romanian-source income.
Individuals will be regarded as tax residents:
- if they have their domicile in Romania,
- if their centre of vital interests is in Romania or
- if they are physically present in Romania for more than 183 days in any period of 12 consecutive months ending in the calendar year.
Married couples are taxed separately.
Taxable income includes:
- employment income,
- rental income,
- benefits in kind,
- income from other sources.
Certain deductions are permissible for 2012 including:
- voluntary pension contributions up to a maximum of EUR 400 (approx RON 1'700),
- social security contributions.
Tax allowances for 2012:
- personal allowance of a maximum of RON 250, not available if income is over RON 1’000,
- an additional allowance for dependants (spouse and children) is granted of RON 100 per dependant. The total of both allowances cannot exceed RON 650.
Income tax rates for 2012:
- 16.00% flat tax rate.
By the 25th of May, following the tax year.