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Romania
Individual - Significant developments
Last reviewed - 25 April 2024
As of January 2024, the value of subscriptions for the use of sports facilities borne by employers for their own employees is exempt from personal income tax (PIT) and social contributions within the limit of the Romanian leu (RON)-equivalent of 100 euros (EUR)/year/employee (provided that the threshold of 33% of the base salary of the employee is not exceeded). Amounts incurred for the same purpose by employees themselves will be deductible within the same limit of 100 EUR/year when calculating the salary taxes.
As of January 2024, the exemption from PIT and social contributions for the amounts granted to employees who carry out teleworking activities to support utility expenses at the place of work (allowed previously for up to RON 400/month) has been eliminated.
The amounts borne by employers for placing their employees’ children in early education units, according to the law, will not be included in the calculation base for PIT and social contributions up to the limit of RON 1,500/month for each child, provided that the threshold of 33% of the base monthly salary is not exceeded.
As of January 2024, both meal vouchers and holiday vouchers became subject to health fund contribution of 10%, in addition to the applicable PIT rate of 10%.
As of November 2023, the income tax exemption for salary income derived by eligible employees from software development activities is capped, being applicable only up to RON 10,000 per month/per employee. The employee social insurance contribution has been reduced with the percentage corresponding to the private pension plans, and contributions to private pension became optional. The tax incentives for the employees in the food, agricultural, and construction industries have been changed, being aligned to the one applicable for software creation described earlier.
