Romania’s 2018 legislative changes: summary infographic

This infographic summarises Romania's 2018 legislative changes in five areas: salaries, micro-enterprises, split VAT, taxes and tax returns.

2018 legislative changes infographic

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EURO

The euro ended the year at an exchange rate of 4.6597 lei per euro. This official rate was used to calculate certain thresholds, including the income-tax threshold for micro-enterprises.

Salaries

• National minimum gross base salary: 1,900 RON. Taxes for part-time employment contracts are calculated using the minimum gross salary.
  • Exceptions
    • School pupils
    • Students
    • Pensioners
    • People earning a combined minimum of 1,900 RON
• The employer's only contribution is the work insurance contribution: 2.25%
• The deadline for reporting changes in ReviSal was extended to 31 March 2018, except for contractual changes involving working time, which must be reported at least one day before they take effect
• National average gross salary: 4,162 RON. This was no longer the calculation base for CAS and CASS
• Salary contributions were transferred to the employee:
  • CAS (pension): 25%
  • CASS (health insurance): 10%
  • Salary income tax: 10%

Micro-enterprises

• The income threshold increased from 500,000 euros to 1,000,000 euros.
• Income tax is 3%. It falls to 1% for micro-enterprises with at least one employee.

Split VAT

• The system applies mandatorily to companies that:
  • have overdue VAT debts greater than the following amounts, where payment is more than 60 days late:
    • 5,000 lei for small companies
    • 10,000 lei for medium-sized companies
    • 15,000 lei for large companies
  • are insolvent.
• Split payment of VAT is mandatory for those with business partners that apply split VAT.

Taxes and returns

• Taxes
  • The dividend tax rate remains 5%
  • Dividend tax must be reported and paid to the state budget by the 25th of the following month, inclusive
  • The personal income tax rate is 10%
  • The specific tax applies to companies with turnover above 1,000,000 euros
• Returns
  • Legal entities must file their tax returns exclusively online.
  • People whose net non-salary income reached at least 22,800 lei in 2017 had to file Return 600. * At the time, discussions were under way about postponing the deadline until 31 March 2018 or removing the obligation.