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Acording to the Romanian law,and respectively to the Romanian Fiscal Code, as it completed with other laws, an individual is subject to the following taxes:
1. Tax on profit
2. Tax on income (which applies also the the incomes obtained by non residents in Romania)
4. Local taxes
1. Tax on profit
Tax on profit must be paid by the following individuals:
-the non residents operating in Romania in an association without legal personality;
-residents associated with Romanian legal enitites, for revenue realised both in Romania and abroad from associations without legal personality; in this case, the tax due by the individual is calculated, retained and paid by the Romanian legal person.
The tax on profit is applied as follows:
-for non-resident inividuals operating in Romania in an association without legal personality, it is applied to the part of the taxable profit of the association, attributable to each person;
-for resident individuals associated with Romanian legal persons who realise income both in Romania and abroad, from the associations without legal personality, it is applied to the part of the taxable profit of the association, attributable to the individual resident.
The tax applied to the taxable profit is of 16%, excepting the situations expressely stipulated by special law.
2. Tax on income
Tax on income is paid by the following individuals:
a. resident individuals;
b. non resident individuals who perform independent activities through a permanent establishment in Romania;
c. non resident individuals who perform dependent activities in Romania;
d. non resident individuals who perform certain activities, according to the Romanian Fiscal code.
This tax is applied to the following incomes obtained by the above mentioned individuals:
a.) for Romanian resident individuals, having their residence in Romania, it is applied to the income obtained from all sources, both from Romania or from abroad;
b.) for resident individuals, other than the above mentioned, it is applied only to the income obtained from Romania, which are subject to this tax at the level of each source.
c.) for non resident individuals, who perform an independent activity through a permanent establishment in Romania, it is applied to the netto income attributable to the permanent establishment;
d.) for the non resident individuals, who perform an dependent activity in Romania, it is applied to the salary netto income obtained from this dependent activity.
Categories of income subject to income tax:
a. income from independent activities;
b. income from salary;
c. income from leasing the use of property;
d. income from investment;
e. income from pensions;
f. income from agricultural activities;
g. income from prizes and gambling;
h. income from real estates transfer;
i. income from other sources.
VAT is an indirect tax, due to the state budget by the individual who peforms an economic activity, cosisting in one of the following operations:
a. Suply of goods;
c. Exchange of goods or services
d. Extracommunautaire aquisitions of goods
e. Import of goods.
Tha standard rate of VAT is of 19% and it is applied to the taxable transactions which are not extempt from tax according to the law and are not subject to reduced rates.
The reduced rate of VAT of 5% applies to the taxable base for the purchase of houses as part of the social policy, in the terms expressely stipulated by Romanian law.
4. Local taxes
Local taxes that individuals must pay, according to the Romanian law, are the following:
a. tax on buildings;
b. tax on lands;
c. tax on vehicles;
d. legal tax due to the Romanian authorities for the issuance of certificates, approvals and permits;
e. tax for the use of means of advertising and publicity;
f. tax on shows
g. hotel tax