Romania - Tax Guide for Freelance Contractors

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 12 month period.

Taxable income includes:

• employment income,
• rental income,
• royalties,
• benefits in kind such as free housing and private use of a company car or telephone.

Certain deductions are permissible for 2009 including:

• voluntary pension contributions up to a maximum of EUR 400 (approx RON 1’700),
• voluntary health contributions up to a maximum of EUR 250 ( approx RON 1’000),
• social security contributions,
• scholarships,
• most capital gains,
• reimbursement of expenses for commuting between home and work,
• reimbursements of travel, housing, and other expenses related to secondment, subject to limitations.

Tax allowances for 2009:

• personal allowance of a maximum of RON 250, not available if income is over RON 3’000,
• an additional allowance for dependants (spouse and children) is granted up to half ofthe above mentioned amount.  The total of both allowances cannot exceedRON 650.

Income tax rates for 2009:

• 16.00% flat tax rate.

Residents who only have employment income on which tax has already been withheld by the employer, do not have to submit tax returns.

Non-residents have to apply for a fiscal registration certificate and a fiscal identification number within 30 days of starting to work. They have to submit a tax return and pay the taxes due on a monthly basis.

Filing date:

By the 15th of May, following the tax year.