If an individual resides
in Romania for more than 183 days in any calendar
year, they are deemed to be resident for tax purposes.
Tax residency will also be assumed where an individual
is domiciled in Romania, or has their ‘centre
of vital there.
Tax-residents of Romania
pay income tax on income derived from within Romania
and worldwide. Non-residents pay tax only on income
derived from within Romania.
EU/EEA citizens may enter
Romania freely to live and work and can remain in
the country for up to 90 days. After this, it is
necessary to register at the local Aliens Office
to state the purpose of remaining in the country.
The majority of non-EU/EEA citizens will require
a visa to enter the country, although there are
exceptions.
Cost
of Residence Document (approx)
Work
Permit Required
Work
Permit Authority
A minimal fee (RON100) is payable
for the residence permit.
EU/EEA citizens do not require a
Work Permit, though everyone must register at the
local Aliens Office for intended stays of more than
90 days.
Individuals who are not citizens
of the EU/EEA should apply to the Ministry of Labour
and Social Protection or at the Romanian Embassy
from their country of origin.
Personal
Income Tax
Corporate
Income Tax
Social
Taxes
The standard rate of income tax is
16%. This tax rate applies to income from employment,
self-employment, property rentals and pensions.
A personal allowance of RON250 is available (plus
RON125 per child, up to a maximum allowance of RON650)
for income up to RON3,000.
The standard rate of Corporation
Tax is 16%, and companies must either pay at this
rate, or pay the minimum lump sum alternative, which
is calculated according to the previous year’s
earnings, and varies between RON2,200 and RON43,000.
Gambling firms face a slightly different calculation
process. Smaller companies (referred to as micro-enterprises)
could, until the end of 2009, choose to pay a rate
of 3% on total revenue, in effect paying income
tax instead of corporation tax on profits. This
option is no longer available.
Employers pay variable rates of social
security for their employees, according to the types
of working conditions. Contributions (which are
made by both employers and employees) go towards
health, pension entitlement, and unemployment benefits.
Contributions by self-employed (sole proprietors)
are optional, and some types of self-employed workers
(such as accountants, lawyers, and artists) have
sector-specific schemes in place.
Capital
Gains Tax
Property
or Wealth Tax
Stamp
Duty
Companies and individuals are taxed
on capital gains at 16%.
Gains from the sale of property are
taxed at 16%. Stamp duty is also payable, at up
to 3%, depending on the value of the property. Municipal
land taxes are also imposed, at varying rates.
Stamp Duty is payable on the transfer
of property at a variable rate. A small amount of
Stamp Duty is also payable on certain contracts
and legal documents.
Other
Taxes
The standard rate of VAT is 19%.
There is also a reduced rate of 9% applicable to
specific supplies and a third rate of 5% relating
to supplies of public housing and land. Withholding
taxes on dividends, interest, and royalties where
they apply, are usually imposed at 16%, although
a 10% rate can sometimes apply to dividend payments
made to domestic corporations. Transactions between
connected EU corporate recipients are exempted (subject
to a 10% minimum holding by the overseas company).
I am facing a dilemma and would like to invite any reader to advise me.
I am a Brit who has lived outside UK since 1993- initially in Belgium (5 years) & subsequently in 4 African countries. After a year outside UK, the UK Inland Revenue confirmed my status as ‘non-resident’ for tax purposes and as I have had no income in UK, I have not completed a UK tax return for many years. I visit UK very rarely, normally for one or two weeks per year.
In May 2011, I was made redundent by my employers, who were downsizing. This coincided with a move to retire in the Netherlands, where I now have official residency (my wife is Dutch). I thought that, at 63 years of age, I would be unlikely to find suitable employment; in fact, I have not tried hard and had resigned myself to permanent (but slightly premature) retirement.
However, to my surprise, I have recently been approached (through a mutual acquaintance) by a company that wishes to use my skills on a project in the Isle of Man. The role, if & when confirmed, would see me working for about 10 days a month in Isle of Man, with about 5-7 additional days per month, working from home. Contract will be for about two years. The firm has asked me to confirm if I would prefer to be paid (and therefore be taxed) in Netherlands or Isle of Man, the idea being that I create a self-employment entity for this employment. I have no data on which to base a response. Given Isle of Man's traditional ‘low tax ‘environment, are there any benefits to declaring an income in IOM? Are there any Isle of Man residency implications? Netherlands takes a tax cut on total world wide income, and, as I have never had any contact with the Dutch authorities, I am reluctant to start such a relationship now. Do I have to declare income in both countries, with a breakdown prorata to the time spent in each jurisdiction? Should I declare income to UK Inland revenue?
If anyone has pertinent advice on these points, I’d be grateful to hear them.
Hi, I live in South Africa, and along with 2 business partners (one in South Africa and one in Ireland - all South African citizens though) are setting up a company that designs Smart phone applications. As they will be sold on the various platforms (none of which operate out of South Africa)we have to list our company as operating out of Ireland anyway. As such, we have decided to set up our company in the best tax country and are wanting info on whether Jersey or Malta is best? If anyone has some inside info we would really appreciate it!! Thanks!Mary
Just wondering if anyone 'on the ground', as it were, might be reading and able to help me...I was considering relocating my hairdressing business from the UK to Ireland before the economy started to go properly belly-up...now, not so much.
Are things as bad as they seem over there, or is it being over-hyped by the media? And is the government still keen to support small business people? Cos if not, I'll look elsewhere...
I am moving full time to France in Jan 2012 where I will be working as a freelance contract engineer to a number of Australian based companies. It is my choice to move to France not a work requirement. I will be renting my house out in Austrlalia and renting a house while I am in France. I hold both EU & Austrlain citizenshiip. I am married with 2 young children. Approx total family income $100k AUD. Do I pay tax in France or Australia or both ? Any help or guidance would be much appreciated.France move
Cyprus
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