What is the Romanian income tax rate?

10% flat rate on taxable income. Romania is one of the few EU countries with a single-digit flat income tax rate.

What social contributions apply to Romanian employees?

CAS (pension contribution): 25% of gross wage. CASS (health contribution): 10% of gross wage. CAM (labor insurance): 2.25% paid by employer. Total employee deductions: 35% before income tax.

How is the gross/net salary conversion done?

Net salary = Gross - CAS (25%) - CASS (10%) - income tax (10% of gross minus CAS/CASS). For a gross of 5,000 RON: CAS 1,250 + CASS 500 = 1,750 deducted, taxable base 3,250, tax 325, net 3,425 RON.

What tax exemptions exist in Romania?

IT sector workers are exempt from income tax on IT wages (implemented to attract tech talent). Construction workers also benefit from income tax exemptions. First home purchase deduction of up to 300 EUR annually.

What is the Microenterprise tax regime?

Companies with revenue under 500,000 EUR and at least one employee pay 1% corporate tax on revenues (microentrepreneurs). Without employee: 3% on revenues. Attractive for small service businesses.

Romania Impozit pe Venit (Income Tax) Calculator 2024

Calculate Romanian income tax (impozit pe venit): flat 10% rate. Employee social contributions: CAS 25% + CASS 10% + income tax 10% = ~45% on gross. Employer social contribution: 2.25% CAM.

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