Our guide to Payroll in Romania

Doing Business in Romania

Investing in Romania

Romania has joined the European Union on the 1st of January 2007 and began the transition from communism in 1989 with a largely obsolete industrial base and a pattern of output unsuited to the country’s needs. The country emerged in 2000 from a punishing three-year recession thanks to strong demand in EU export markets.

Basic Facts about Romania

How to Say

• Hello: Bună
• Good Morning: Bună dimineața
• Good Evening: Bună seara
• Do you speak English?: Vorbiți engleză?
• Goodbye: La revedere
• Thank you: Mulțumesc
• See you later: Ne vedem mai târziu

Registrations and Establishing an Entity

Both foreign individuals and legal entities can establish corporate presences in Romania.

Companies shall have their own equity, share capital, management, registered offices, assets, names and bank accounts.  All companies must be registered with the National Trade Register’s Office, organised under the Romanian Ministry of Justice. Companies should register locally with the Trade Register, at one of the 42 territorial offices, depending on the address chosen for registering their office.

The National Trade Register’s Office is a public institution aiming to maintain statistical information on business activities in Romania. Thus, in Romania, a company shall specify their main activity and is then allocated a NACE code which relates to that particular activity, such as “Property Investment”, when using the legal form of the company to buy land in Romania.

In Romania, a foreign entity can be registered for payroll purposes.

Documents and Information

To commence the incorporation of a company in Romania, the following information is required:

• The company name which must be reserved with the Trade Register.

• The director/s full name, date and place of birth, PIN (personal identification number), ID details (such as validity of ID card/passport, no., issuing authority), domicile address and nationality.

• The shareholder/s full name, date and place of birth, PIN/registration no. in the relevant public registers, domicile address and nationality for natural persons and name, headquarters, nationality, registration number or tax identification number for legal entities.

• The company’s scope of activity.

• The registered office in Romania.

• The bank where the share capital/operational capital account shall be opened.

Main documents required:

Proof of availability and/or reservation of the company’s name, issued by the Trade Register.

The company’s name shall not be indistinct or similar with the name of other companies or previously registered names; it must be available and distinguishable – the reservation of the name with the Trade Register is valid for one (1) month. The approval to use the company’s name is also required in certain situations, for example when the words “national”, “Romanian”, “institute” or their derivatives are used in the name of the Company.

Articles of incorporation

The resolution of shareholders’ general assembly, if at least one shareholder is a legal entity, approving the participation in the new company to be incorporated and the mandate of the person authorised to sign the articles of incorporation on account and behalf of the shareholder, as a legal entity.

Proof of having a legally registered office in Romania, which is established by:

• A sale and purchase agreement, a lease or a free lease agreement, depending on the company’s needs

• Documents concerning the space chosen as registered office (excerpt from the Land Registry Office, cadastral sketch), documents certifying the ownership rights over the property for the presumed owner (if the company chooses to use a lease or a free lease agreement)

Statement from the owners’ association in the building and from the neighbours located immediately next to the chosen headquarters, in which the latter agree with the use of the location for the stated purposes, unless the company’s director/s submits an affidavit declaring that no activities are carried out at the registered office.

Statement regarding the activities to be conducted by the company.

Ownership documents for in-kind contributions, subscribed and paid up upon incorporation; the certificate of status, in case real estate is involved in such contributions, attesting to the fees entailed thereupon.

Affidavit of the foreign citizen who is a natural person, on his/her own behalf or by a representative of the foreign citizen who is a legal person not fiscally registered in Romania, certifying that there are no fiscal debts, in original and copy translated by a certified translator whose signature is authenticated by a notary public, if applicable.

Affidavit of the founders, directors and financial auditors or of the natural persons representing the legal person appointed as shareholder, director or financial auditor, certifying that they meet the legal conditions to hold such capacity, if applicable.

Proof of identity for the general manager or director/s (as legal representative) and shareholders, either a passport or the national identity card - in case of natural persons and the registration document of the company under the national law – in case of a legal entity, comprising all identity details and the domicile/registered office address.

If applicable, prior notices stipulated under special laws regarding the activity authorisation (such as the accounting activity).

Statement regarding the beneficial owners of the company, mandatorily:

Proof of legal fee(s) payment.

If you do not travel to Romania, an original authenticated power of attorney with Hague Apostille (if applicable) is required to allow your lawyer or fiscal representative to set up the company and act on your behalf for the following steps:

• Incorporation and registration of the company.

• Opening a bank account (first as a share capital bank account which will be converted to a full operational bank account upon the registration of the company).

• Obtaining the VAT number.

After registration of the company with the Trade Register and fiscal authorities, the company shall be registered with the Labour Inspectorate when the first employment agreement is issued.

The legal authorities for payroll are the Ministry of Finance, the Ministry of Labour and the Ministry of Health. Please note that, based on the company’s activities, other authorities must be notified before or after the company’s registration. 

Banking

It is mandatory to have a domestic company bank account to make employee salary payments and third-party authority payments.

Banks are generally open Monday to Friday, from 09:00 to 17:00. Some banks are also open on Saturday from 09:30 to 12:30.

Working Week

The Romanian working week is typically Monday to Friday.

The working week for full-time employees is generally limited to no more than five days (eight hours a day) and a maximum number of 40 hours a week, with 2 consecutive days of rest, usually Saturday and Sunday. Under the law, unless there are exceptional circumstances, the maximum legal length of working time may not exceed 48 hours per week, including the overtime. 

Dates

Dates are usually written in the day, month and year sequence. For example: 1 July 2020 or 1/7/20.

Numbers are written with a period to denote thousands and a comma to denote fractions. For example, RON 3.000,50 (RON three thousand and fifty bani).

National Legal Holidays 2025

National Minimum Wage

The national minimum wage in Romania is, in 2026, RON 2,574 net (RON 4,050 gross), which is approximately EUR 506.

Note:  Starting July 1st 2026, the minimum wage in Romania will be changed to RON 2,699 net (RON 4,325 gross). The average salary in Romania for the same year is RON 5,310 net (RON 9,078 gross), approximately EUR 1043.

Annual tax returns (financial statements: balance sheet, P/L account, trial balance) are due in Romania by the 25th of May of each year for the previous year, but in certain cases, such as for employment income derived from non-Romanian employers, tax returns are due on a monthly basis by the 25th day of each month for the previous month.

The financial year usually ends on the 31st of December.

Where foreign individuals are employed by a Romanian entity, both salary tax and social contributions are applicable, except for the case when a certificate for social security coverage is available, such as the A1 Form used for seconded European citizens.

Income Tax

Both Romanian nationals and Romanian companies shall pay tax on any income earned in Romania and any income earned outside Romania. Non-residents that are fiscal residents declared in Romania are required to pay tax on their total income, i.e., the income obtained in Romania and the income obtained abroad.

For tax purposes, an individual who resides in Romania for more than 183 days within a 12-month period should submit the “questionnaire to establish the fiscal residence of an individual upon arrival in Romania” to the local fiscal authority. Following the submission and the review/assessment of the file, the fiscal authority shall issue a notification regarding the fiscal residence of the individual (the individual will be declared fiscal resident in Romania, or he/she remains tax resident in the country of origin/residence).

An individual does not have to be present in Romania for 183 consecutive days, but the total number of days must not exceed 183 days in any 12 consecutive months.

The “questionnaire to establish the fiscal residence of an individual upon departure from Romania” has to be submitted by the individual at least 30 days prior to his/her departure from Romania. The fiscal authority will issue a notification regarding the fiscal residence of the individual (the individual remains fiscal resident in Romania or not).

Romania has double taxation agreements in place with most countries.

Employers are required to deduct tax payments on behalf of their employees through the payroll.

The tax system in Romania is a great incentive for expats wishing to relocate to Romania with flat tax rates of 10% on individual income and 16% on corporate income. Smaller companies, i.e., microenterprises, pay smaller taxes. A tax rate of 1% is paid if the company has just one full-time employee, with an employment agreement for unlimited period or for at least 12 months. If the company has at least one full time employees and exceeds a turnover of EUR 60,000.00, the tax rate is 3% of the annual turnover.

New categories of non-taxable salary income have been introduced:

• The employee/employer can pay contributions to voluntary pension funds and private health insurance authorised by the Romanian Financial Supervisory Authority, up to the equivalent of EUR 400 per year.

• Meal vouchers granted by employers to employees, where specific legislation prohibits employees from bringing their own food to the premises.

• Personal deductions are available for an income of up to RON 5,700 per month; if the taxpayer has dependants, the deducted amount increases.

• Starting with the 1st of January 2024, the maximum non-taxable ceiling for gym membership provided by suppliers authorised with NACE Codes 9311, 9312 or 9313 is EUR 100/year for each employee.

New amounts can be considered within the 33% monthly threshold for non-taxable employee incentives that may be granted thereto, as follows:

• The amounts borne by the employer for placing their employees’ children into early education centres (i.e., kindergarten, nursery or day-care centres) – the maximum non-taxable ceiling is of RON 1,500/month/child. Note: this amount is provided only to one of the parents – employee, only by one employer, based on an affidavit of the parent. The parent-employee working for more employers is obliged to declare that he/she does not benefit from such payment from another employer. Also, in case the employee pays directly the amounts to the early education centre and the employer reimburses him/her, such reimbursement is carried out based on supporting documents submitted to the employer by the parent-employee.

• This incentive is also considered as limited tax deductibility social expense when calculating the employer’s corporate income tax.

• The positive difference between the preferential interest set by negotiations and the market interest, for loans and deposits.

Starting with January 2024, with respect to income:

The following amounts exceeding the 33% monthly threshold shall be considered income for the months they have been paid for the month during which their payment has been made/the month during which the corresponding expense report has been approved:

• Touristic or treatment services (including transportation), during the leave, for employees and their family members;

• Contributions to optional pension funds borne by employers for their employees;

• Optional healthcare premiums or subscriptions borne by employers for their employees;

• The positive difference between the preferential interest set by negotiations and the market interest, for loans and deposits;

• Gym membership;

• The amounts borne/provided by employers to their employees for placing their employees’ children into early education centres.

For all these amounts, the tax is calculated and withheld by cumulating the latter with the salary and other income assimilated to salary for the month in which they are deemed as income. The income tax for these amounts is paid monthly or quarterly.

• For the calculation and implementation of the 0% income tax for employees involved in IT&C, if during the same month the employee earns income from salary for a fraction of the month at the workplace where the basic function is located with one or, as applicable, several employers successively, for the application of the exemption, each employer will determine the fraction of the RON 10,000 monthly threshold corresponding to this period and shall grant the exemption for the gross monthly income earned, within the threshold pro-rata thus determined.

• For employees working in IT&C, agri-food or construction, they may return to the option of paying the full social contribution for Pillar II, the rules on this option being set by employers under their internal regulations or other internal documents.

Also, starting with 01.01.2024, amounts for telework given to employees are fully taxable.

Social Security

All employed and self-employed persons shall pay social security contributions (pension and health insurance), with contributions paid by each employee and employer, as required by the fiscal legislation.

The employee contributions are computed, withheld and paid to the State Budget by the employer. The payment must be performed by the 25th of the month following the reporting month. Social security contributions are paid by employers for employees.

As of the 1st of January 2018, when the social security shifted from the employer to the employees, the contributions are as follows:

• The pension contribution - 25% owed by employees as well as other individuals required by law to pay the pension contribution.

• The health insurance contribution - 10% owed by employees or by individuals required by law to pay the health insurance contribution.

• The work insurance contribution applied to employment and employment assimilated income - 2.25% owed by employers, individuals or companies.

• Where individuals are employed by a Romanian entity, both salary tax and social contributions are applicable. In case of secondment from Europe to Romania, if a certificate for social security coverage (A1 Form) is available, the secondee will be exempted from the mandatory SSC.

Social security contributions are mandatory and shall be paid by the 25th of the next month.

Note: Starting with 01.01.2024, meal vouchers are taxable with health insurance (10%) and income tax (10 %).

Reporting

Monthly

D112 Return

Submitted by employers for all individuals under employment agreements or assimilated with employees (information regarding the employer, employees, income and taxes).

Online registration on the website of the Ministry of Finance, based upon a digital certificate, is mandatory.

It can be submitted on behalf of the client by the legal representative.

The legal representative shall have a digital certificate issued by the fiscal authority.

D224 Return

For employment income derived from employers outside Romania, tax returns (D224 tax return) are due by secondees, monthly, by the 25th day of each month, for the previous month.

Subsequently, D222 is submitted for the same category of employees, but only upon the start and end date of the secondment. The host employer has the obligation to submit this statement.

Yearly

Annual tax reports are submitted at the end of the financial year to the fiscal authorities. In Romania, annual tax returns are due each year by the 25th of May for the previous financial year.

By the 28th of February, the informative return D402 must be submitted by EU residents for salary and assimilated income (including allowances for company administrators).

The single return on income tax and social contribution owed by individuals is used to declare the income tax and social contributions owed for the previous financial year, as well as the estimated tax and social contributions owed for the financial year in progress.

Additionally, the D224 return submitted in December must include the tax income for the whole year (for all previous months from January until November).

It is legally acceptable in Romania to provide employees with online payslips. Starting from the 1st of January 2023, the salary statements for which the employer has an informative statement regarding the withholding tax, on income beneficiaries, according to the legal provisions or for which the employer has the legal obligation to submit the statement regarding the obligations to pay social contributions, income tax and the nominal records of insured persons, at the National Agency for Fiscal Administration, shall be kept for 5 years.

Reports

Payroll reports shall be kept for at least 50 years.

Payslip Example

Local language example:

New Employees

All employers in Romania must comply with the Romanian labour law, whether they hire Romanian citizens or foreign nationals and regardless of the size of the business. The Romanian Labor Code (“Codul Muncii”), which was enacted in 2003, governs the relationship between employers and employees, and covers local employees working for Romanian employers in Romania and abroad, as well as foreign citizens working in Romania.

All new employees are required to be registered with the Labour Inspectorate and in a specific software for evidence of all employees, called Reges, one (1) day before starting their employment agreement at the latest.

All new employees shall be granted an employment agreement which should include the following information:

• The identity of the parties.

• The workplace or, in the absence of a permanent workplace, the possibility of working in several places.

• The headquarters or, as appropriate, the domicile of the employer (in case of remote work, the place of performing activities based on a schedule).

• The position/occupation according to the Classification of Occupations in Romania.

• The criteria to evaluate the professional activity of the employee.

• The job-specific risks.

• The date when the contract is starting to take effect.

• In the case of an employment agreement of limited duration, the length thereof.

• The length of the annual leave the employee is entitled to.

• The conditions under which the contracting parties may give notice and the length thereof.

• The basic pay, other components of earned income, and the payment frequency for the wage the employee is entitled to.

• The normal length of work, expressed in hours per day and hours per week.

• The length and the condition of the probationary period.

• The level at which the applicable collective bargaining agreement was concluded.

• The procedure regarding the use of the electronic signature, the advanced electronic signature and the qualified electronic signature is carried out in accordance with the provisions of the normative acts, the Internal Regulation, the applicable collective bargaining agreement (if applicable).

• The professional training is carried out in accordance with the provisions of the normative acts, the Internal Regulation/the applicable collective bargaining agreement (if applicable).

• The employer’s bearing of private medical insurance, additional contributions to the employee’s private pension or occupational pension, under the law, as well as the granting, at the employer’s initiative, of any other rights, when they represent advantages in money granted or paid by the employer as a result of the employee professional activity, if applicable.

• Notice period in case of resignation and dismissal.

• Information of the Employee about the obligation to join a private pension fund.

• Job responsibilities (job description – annex to the employment agreement).

• The reference to the collective bargaining agreement governing the working conditions of the employee, if applicable. Only employers with more than ten (10) employees are required to start collective negotiations with the employees/employees’ representatives with respect to concluding a collective bargaining agreement at unit level, according to the law.

The Internal Regulation is mandatory for all employers.

The mandatory documents required for hiring a non-EU citizen are:

• Passport.

• Work Permit obtained from the Immigration Office.

• Work Visa issued by the Romanian Missions abroad in the country of origin/residence.

• Signed employment agreement and payroll documents.

• Valid lease agreement for a residence address in Romania (the domicile address is considered the one in the country of origin).

Non-EU citizens have the legal right to stay and work on the Romanian territory only upon obtaining the employment visa.

EU citizens benefit from the same treatment as Romanian citizens and can be hired without a work permit.

Employees leaving the Company

When an employee leaves the Company, local authorities should be notified thereupon. The termination must be recorded in the specific software Revges, at the latest on the date of termination of the individual employment agreement/on the date when the employer becomes aware of the event that determined, under the law, the termination of the individual employment agreement.

Labour Law

The labour force regulations are mainly comprised in the Labour Code that stipulates all the rights and obligations for both employers and employees.

Holiday Accrual/Calculations

For each employee, the annual holiday leave is of minimum 20 working days.

The right to annual leave cannot be subject to any waiver, assignment or limitation.

The official holidays, as well as the paid days off, stipulated in the applicable collective bargaining agreement, are not included in the annual leave.

Maternity Leave

The employee is entitled to 126 calendar days of paid maternity leave (before and after birth). The Employee has a free choice regarding the organisation of leave but shall consider a mandatory minimum of 42 calendar days leave after birth.

The allowance for maternity leave (the period of 126 days) is fully paid by the social security funds. The employee shall receive a monthly maternity allowance, established as 85% from the calculation basis, which is usually calculated as the average of gross monthly income from the last 6 months of the 12 months from which the contribution period is established, up to the limit of 12 minimum gross salaries per country per month, on the basis of which the employment insurance contribution is calculated.

The Employer cannot dismiss the Employee during the maternity leave. The only legal exception is in the case of dismissal due to reasons related to the legal reorganisation or bankruptcy of the employer, under the terms of the legislation in force.

Note: Starting with 01.01.2024, the 10% health insurance contribution is also owed for the sick leave indemnity granted under Government Emergency Ordinance No. 158/2005 on social health insurance leave and allowances.

Paternity Leave

Paternity leave is granted for the father of the child. The maximum period for the paternity leave is 15 working days.

Paternity leave includes a period of ten (10) working days of paid leave that the father is entitled to demand after the birth of the child and a period of five (5) working days taken for the father who followed childcare course. Both types of leave are granted in the first eight (8) weeks after the birth of the child.

Note: The paternity leave must be declared and submitted to the fiscal authorities (via the REGES application), at least one day before entering to force.

Childcare Leave

Both parents are eligible for childcare leave, but the leave is granted to only one of the parents - namely the parent who will stay at home for raising and caring for the child.

According to the law in force, any of the parents has the right to ask for a childcare leave, under the condition that he/she obtained taxable income for at least 12 months in the last two (2) years prior to the child’s birth.

The childcare leave is granted for a period of two (2) years, as a paid leave. The amount paid as a monthly allowance will be calculated as a percent of 85% applied to the average net amount for the last 12 months of the last 2 years prior to the child’s birth. The minimum amount of the monthly allowance cannot be less than the amount resulting from the application of a multiplication coefficient of 2.5 to the value of reference social indicator, and its maximum amount may not exceed the value of RON 8,500.

In the case of a disabled child, the childcare leave and the corresponding monthly allowance are granted for a period of 3 (three) years.

In this period of two years of childcare leave, the other parent, if he/she is eligible - obtains taxable income for at least 12 months, he/she shall apply for a childcare leave for at least two months (while the parent that was in childcare leave until then starts his/her activity with the employer). If the latter parent does not apply for the leave to raise the child for at least 2 months, although he/she meets the requirements set forth under the law, the other parent (the one who was already in childcare leave) cannot benefit from this right in his/her place.

Sickness

In case of illness, the sick leave days are paid as follows:

• Typically, the employer will support the first five (5) calendar days of illness (the employer will pay only the working days).

• FNUASS (The Single National Health Insurance Fund) supports the difference of sick leave days starting with the sixth calendar day of illness.

The payment rates are between 75-100% from the gross revenue average amount of the last six (6) months, depending on the illness category.

Note: Starting with 01.01.2024, the 10% health insurance contribution is also owed for sick leave indemnity granted under Government Emergency Ordinance No. 158/2005 on social health insurance leave and allowances.

National Service

There is no mandatory national service in Romania, compulsory military service was suspended in 2006.

Employee Benefits

There are numerous employee benefits, which are made available to all staff members or just for some of them, in accordance with internal policies and the legislation in force.

Any expenses paid by the company to/on behalf of the employee as a benefit are considered taxable income.

Other items in this category include:

• Personal private life insurance.

• Private medical insurance.

• Use of company’s assets for personal purpose (car, phone).

• Rent.

• Personal trips.

Two of the benefits granted to employees are the meal tickets and the gift vouchers.

There is no minimum value for the meal vouchers, as the employer can establish the desired value, but there is a legal maximum value of RON 45.

The value of the most often used meal voucher is RON 40.

A maximum of 1 meal voucher for each day worked can be given, except for the days when the employee is travelling (employee receives a per diem), holiday leave, medical leave or any other absence.

The value of meal tickets is taxable by 10% (income tax) and, starting with 01.01.2024, is taxable with the health insurance contribution (10%).

Employees and children of employees may receive gifts or gift vouchers from the employer. Employers can provide gifts/gift vouchers at Easter, June 1st (Children’s Day), Christmas and March 8th (Women’s Day, for women only).

The gift/gift voucher received for the above occasions is not taxable if the value does not exceed RON 300, but any value exceeding RON 300 will be fully taxable with the income tax and social contributions.

Expenses

The maximum level of deductible per diem is RON 57,5 /day/employee. This value is for domestic travels (in Romania).

Employees are not obliged to provide supporting documents for the per-diem expense.  This amount is allocated for food and drinks and any additional expenses in these categories will be considered as non-deductible for the company.

For travels abroad (from Romania to another country), the limits of a per diem allowance is as per the specific legislation (e.g. EUR 30-40/day in Europe, depending on the country).

The amounts exceeding the above values multiplied with 2.5 become benefit in kind, for which tax and social contributions shall be calculated.
All amounts hereinabove cannot exceed a ceiling of 3 basic salaries/month (for employees), i.e., 3 remunerations/month (for directors).

Note: All amounts and provisions related to the per-diem expenses are provided under the Romanian legislation for public functions, however, in practice, they are also considered applicable in the private sector as well.                                                                                                                  

A non-EU citizen shall require a work permit to legally work in Romania.

The Romanian Government has applied a yearly quota system, which regulates the number of foreign employees allowed in the country each year. Work permits are granted according to the quota system and upon presentation of several mandatory documents.

Local Employment

A work permit is issued by the General Inspectorate for Immigration for a non-EU citizen who will work in Romania.

In order to hire a non-EU citizen, Romanian employers must prove to the Government that they are a legitimate business in Romania. They shall also show that the company is not in debt and that they have made every effort to find a Romanian national to fill the position that they are now offering to an expat.

Romanian employers must also prove that the proposed employee has had suitable education and training (the studies of a non-EU citizen must be acknowledged by the Romanian Ministry of Education, only in case of highly skilled workers and secondees) for that specific position, and that they have suitable work experience in the relevant field. This is usually done through the submission of a CV and experience reference documents. As a granting condition, non-EU citizens shall obtain a criminal clearance certificate for the work permit and a medical certificate for the residence permit (fit for employment).

The employment of a non-EU citizen that is working without a work permit or maintaining the employment of a foreigner who does not have a valid work permit shall constitute an offence and the company shall be sanctioned with fine amounting RON 10,000 – 20,000 for each expat identified in the condition above.

The sanctioned employer will be banned from obtaining work permits for other non-EU citizens for a period of up to three (3) years.

Secondment of a non-EU citizen

The work permit for the secondment is issued by the General Inspectorate for Immigration and can be extended through the residence permit, which is valid for one (1) year only and cannot be extended.

The intra-company transfer (ICT) secondment may be up to three (3) years for specialists and managers, and for one (1) year in the case of trainee employees.

The statement concerning the trans-national secondment should be submitted to the Local Labour Office by the home employer, with at least one (1) day before the secondment starts – within maximum 5 days from the start date of the secondment. The fine for not submitting the statement in due time is between the amount of RON 1,000 and 2,000 - RON 5,000 and 9,000.

Key updates in 2026

In Romania, there have been significant changes to personal income tax, social security, and labour law effective from 2024. Below, we provide a summary of the key changes:

• Tax on Income from Unidentified Sources: Starting with the 1st of July 2024, any income ascertained by the Romanian Fiscal Authority, which cannot be traced back to a known source, will be taxed at a high rate of 70%, increased from the previous 16% rate.

• Value Added Tax (VAT) Adjustments: Starting with the 1st August 2025, VAT rates will see adjustments for various categories. For instance, the VAT standard rate is 21%. The only exceptions are :9 % VAT rate for houses until July 31st 2026 (in certain conditions) and 11 % VAT rate for some services or goods delivery.

• Special Tax on High-Value Assets: 0.9% in 2026. This includes a tax on residential buildings with a taxable value exceeding RON 2,5 million and a tax on cars registered in Romania with a purchase value exceeding RON 375,000.

• Changes to Tax Exemptions in Specific Sectors: The tax exemption for salary income in certain sectors such as IT&C, construction, agriculture, etc., will be limited. For example, in the IT sector, the exemption will be limited to a gross monthly wage of up to RON 10,000.

• Corporate Income Tax Adjustments: Companies with a turnover of more than EUR 50 million will be required to pay a minimum turnover tax starting with the 1st of January 2024, if their calculated corporate income tax is lower than this minimum level.

• Health Insurance Contributions: Law No. 296/2023 introduces changes to the basis for calculating health insurance contributions, which will now include the value of meal and holiday vouchers, effective from January 2024. Additionally, the exemption from health insurance contributions for employees in construction, agriculture, and food industry has been removed.

• Minimum wage will be changed from 4,050 RON gross to 4,325 RON gross starting July 1st 2026. 

Further Information

For more information, or assistance with Romania tax enquiries please contact: gi@activpayroll.com 

About This Payroll and Tax Overview

Please note that this document gives general guidance only and should not be regarded as an authoritative or complete statement of the law, regulations or tax position in any country.  You should always seek specific advice for each specific situation.  This document should not be relied upon as professional advice and activpayroll accepts no liability for reliance on its contents.