Individual - Significant developments

Last reviewed - 16 July 2021

A tax amnesty was approved by the Romanian authorities based on which taxpayers may claim, by 31 March 2021, the annulment of the late payment interest and penalties related to the main fiscal obligations having payment deadlines up to 31 March 2020.

In addition, by exception of law, due to the pandemic situation, late payment interest and penalties are not calculated and are not due in Romania in respect of the main income tax and social security liabilities due between 21 March 2020 and 25 December 2020. 

The following types of income were exempt from salary income tax and social contributions:

  • Amounts granted by employers for early education of employees’ children and for epidemiological testing and vaccination.
  • Amounts granted by employers for covering the utilities expenses of employees who are teleworking, up to a monthly threshold of 400 Romanian lei (RON) corresponding to the number of days the employee is teleworking.

Specific provisions were introduced in the legislation regarding the obligation to compute, withhold, and declare the Romanian salary tax liabilities 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. Such obligation belongs either to the employer, to the income payer, or to the individual, depending on certain conditions.