Romania

Individual - Significant developments

Last reviewed - 02 February 2022

The deadline to apply for the tax amnesty currently in place has been extended to 30 June 2022. More specifically taxpayers may claim, by 30 June 2022, the annulment of the late payment interest and penalties related to the main fiscal obligations having payment deadlines up to 31 March 2020.

A simplified payment rescheduling procedure for the budgetary obligations administered by the central fiscal office has been put in place by the Romanian tax authorities. The procedure refers to main tax obligations administered by the tax authority and accessories outstanding for no more than 12 months prior to the date of application and unpaid until the date of issuance of the tax attestation certificate. Under this measure, simplified payment rescheduling is granted by the tax authorities, for a period of no more than 12 months, without requesting guaranties  by issuing a decision to reschedule the payment of tax obligations, if certain conditions apply. Such decisions include an attached payment schedule, including monthly installments based on the number of months for which the payment rescheduling is approved.

The application of the exemption from salary income tax and social contributions for the amounts granted by employers for early education of employees’ children has been suspended as of 1 April 2021 until 31 December 2022.

Pension income above a monthly cap of RON 4,000 is subject to health contribution due (10%) for the part exceeding the monthly cap.

For benefits in kind and/or in cash received by individuals from third parties based on an employment contract or a contractual relationship between parties the obligation to compute, withhold, and declare the Romanian salary tax liabilities belongs either to the employer, to the income payer, or to the individual, depending on certain conditions, however, the employer can opt for calculating, withholding, declaring and paying both the income tax and the contributions due.

The technical unemployment social protection measure in the context of COVID-19 has been extended until 31 March 2022. The technical unemployment measure applies for employees for cases such as:

  • During the temporary suspension of an individual employment contract, at employer’s initiative, due to the effects of the SARS-CoV-2 coronavirus pandemic.
  • During the period of temporary interruption of activity, whether totally or partially, in the context of the increased number of COVID-19 cases and the extension of Romania’s state of alert.
  • During the period of suspension due to epidemiological investigations, with the exception of employees on sick leave receiving the related social insurance allowance.

For the situations mentioned above, the employees are entitled to an allowance of 75% of the basic salary corresponding to the job. Such costs are supported by the unemployment insurance budget, but to no more than 75% of the average gross earnings provided by the Law for state social insurance budget for 2021. The calculation, withholding and payment of income tax, state social insurance contributions and social health insurance contributions due on the allowance are performed by the employer from the benefits received from the unemployment insurance budget.

The measure applies also to professionals as defined by the Romanian Civil Code, authorized persons, individuals who obtain income from copyright or related rights and sports people.