Romania

Employment expenses

For the primary workplace, the following amounts are currently to be deducted from the gross salary income when calculating the taxable income:

• Individual mandatory social contributions due according to the provisions of the law and in line with the provisions of the European Union (EU) legislation or any social security agreement to which Romania is a party.
• Personal deductions corresponding to the respective month. 
• Contributions made by employees to voluntary pension funds, according to the relevant legislation, to voluntary pension funds classified as such by the Financial Surveillance Authority, made to authorised entities established in the member states of the European Union or the European Economic Area (EEA), up to the RON equivalent of EUR 400 annually/employee.
• Voluntary health insurance premiums and subscriptions to private healthcare facilities borne by employees, up to the Romanian leu equivalent of EUR 400 annually.
• Trade union membership fees corresponding to the respective month.
• Subscription amounts borne in certain conditions by the employees for the use of sports facilities in order to practice sports and physical education for the purpose of maintenance, prophylactic, or therapeutic, up to the equivalent in RON of EUR 100 annually/employee. 

For the salary income obtained in other cases, taxable income is assessed as the difference between the gross salary income and the individual mandatory social contributions, due according to the law, in line with the provisions of the European Union or other social security agreements to which Romania is a party.

Individual taxpayers may generally direct up to 3.5% of their annual income tax to charitable purposes (applicable only for the income tax related to salary income).

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