Page 47 - CEE Tax Guide 2025

activities (freelancers). Starting with 2025, also
VAT options in Romania Applicable / limits
income tax due for dividends will be 10%.
Distance selling The OSS system is applicable. SSC are the following: Social Security Contribution
Call-off stock (25% – employee part), Health Insurance
Contribution (10% – employee part) and Work
VAT group registration
Insurance Contribution (2.25% – employer part).
Cash accounting – yearly EUR 900,000/year Income received from dependent activities
amount in EUR (approx.)
is subject to SSC at the employee (35%) and
Import VAT deferment Certificate of payment employer level (2.25%).
deferral / AEO / simplified
customs procedure As regards the Pension Contribution due for income
received from independent income and IP rights,
Local reverse charge For sale of: certain this is due in case the income is at least 12 times the
types of products.
minimum gross wage (e.g. RON 4,050 for 2025, thus
Option for taxation RON 48,600 per annum).

letting of real estate The 25% is applied to the following computation
base regardless of the level of revenues obtained:
supply of used real estate
• base of 12 times the minimum gross wage in case
VAT registration approx. EUR 60,000 the level of the obtained revenue is between
threshold
12 and 24 times the minimum gross wage;
• base of 24 times the minimum gross wage
As of August 1, 2024, Romania has implemented
the e-VAT system, a digital initiative to enhance in case the level of the obtained revenue exceeds
VAT compliance and curb tax evasion. This system 24 times the minimum gross wage.
will automatically create a pre-filled VAT statement The Health Insurance Contribution (HIC) is applied
for all VAT-registered businesses, using their data to the annual net income obtained by the freelancer
from various reporting obligations. Taxpayers must and the taxable base cannot be higher than 60 times
reconcile this e-VAT statement with their regular VAT the minimum gross wage (capped). For other types
return, and any discrepancies must be explained. of income (rental income, dividend, capital gain, etc. –
SAF-T is already implemented for large and except salary income), the HIC is due as follows:
medium taxpayers and as of January 1, 2025 will • base of 6 times the minimum gross wage in case
be mandatory for all taxpayers. the level of the obtained revenue is between
6 and 12 times the minimum gross wage;
Personal income tax / • base of 12 times the minimum gross wage in case
the level of the obtained revenue is between
Social security system 12 and 24 times the minimum gross wage;
• base of 24 times the minimum gross wage
A 10% flat tax rate is applicable to revenues from
dependent activities (e.g. employment or activities in case the level of the obtained revenue exceeds
assimilated to employment) or independent 24 times the minimum gross wage.

Wage related taxes in Romania Minimum wage Average wage in private sector
Exchange rate RON/EUR 4.97 in EUR in RON in EUR in RON

814 4,050 1,733 8,620
Total wage cost 832 102.00% 1,772 102.00%
Work insurance contribution (2.25% – employer part) 18 2.00% 39 2.00%
Gross salary 814 100.00% 1,733 100.00%
Social security contribution (25% – employee part), 322 40.00% 719 41.00%
health insurance contribution (10% – employee part)
and personal income tax of 10%.

Net salary 492 60.00% 1,014 59.00%

Edwin Warmerdam
Partner, Head of Tax
Phone: +40 21 528 57 57
E-mail: edwin.warmerdam@forvismazars.com

Central and Eastern European tax guide 2025 Forvis Mazars 47