Tax & Labour

Tax rates in Romania 2011

Main tax rates

Tax on profit

16%

VAT (normal / reduced)

24% / 9%

Income tax

16%

Social Security taxes

Companies support a social charges which will be between 28% and 28,98% of the gross salary agreed with the employee:

Tax name

COMPANY
% on gross
salary

EMPLOYEE
% on gross
salary

Social Security Contribution

20,8%

10,5%

Accident insurance CAS

0,15% - 0,63%

0%

Health

5,2%

5,5%

Medical insurance

0,85%

0%

Unemployement

0,5%

0,5% (on salary once Health and Unique National Fund deducted)

Garanty Fund

0,25%

0%

Income tax

0%

16%

Withholding taxes

Double taxation treaties exist between Romania and many countries. Below please find the one valid many EU countries::

Dividents distribution (part> 25% of capital share - part< 25% of capital share)

10% - 15%

Interests

10%

Royalties

10%