The calculus is executed through applying a 16% ratio to the calculation basis determined as the difference between the net income derived from salaries calculated through the deduction from the gross income of the mandatory social contributions due to each month, legally owed in Romania or according to international instruments Romania adhered to, and, according to each situation, of the individual contribution to the state budget owed according to the law, and the following:

1. Personal deduction due to the current month;
2. Union trade contribution paid in the current month;
3. Contributions to the optional pensions funds according to the Law no. 204/2006, with the subsequent changes and additions, and those to the optional pensions funds, classified as such according to the law regarding the optional pensions by the Financial Supervision Authority, managed by authorized entities set-up in EU member countries or belonging to the European Economic Space, paid by the employees, so that at year level the ceiling of the lei equivalent of 400 Euro is not overcome;
4. The premiums for health optional insurance, as well as subscription-based medical services, as defined according to the Law no. 95/2006, republished, with the subsequent changes and additions, paid by the employees, so that at year level the equivalent in lei of 400 euro is not surpassed. The insurance contract or the subscription refers to medical services provided to the employee and/or to any person in its dependency.

This info is issued by ECOVIS Romania as an informing letter over the most important evolutions/changes in the legal and tax fields, and in the investment environment in Romania as well. The information, the analysis and the comments mentioned above are of generic nature and it is not the intention or the imperative of the issuer to be used as a substitute for professional consulting dedicated to individual cases. For advice concerning your specific situation, please contact us directly.

© ECOVIS Romania SRL – 2017