Romania

An individual is a Romanian tax resident if domiciled in Romania, present in Romania more than 183 days in any 12 consecutive months ending in the calendar year concerned, has their centre of vital interests in Romania, or is a Romanian citizen employed abroad as a state representative; those who qualify under the day-count test become resident from their first day of arrival.

The individual annual tax return filing deadline is 25 May, and any tax liability self-assessed on that return is due by the same 25 May date.

Romanian nationals domiciled in Romania are taxed on worldwide income (with limited exceptions, such as exempt salary for work performed abroad) unless a tax residence certificate shows they are resident elsewhere under a double tax treaty; Romanian nationals not domiciled in Romania and foreign individuals are instead taxed only on Romania-sourced income until they themselves become Romanian tax residents.

For primary-workplace employment income, Romania allows deductions for mandatory social contributions and personal deductions, plus — each capped at the RON equivalent of EUR 400 a year — voluntary pension contributions, voluntary health insurance premiums, and investment in securities through Romanian brokers, along with sports-facility subscriptions capped at EUR 100 a year and trade union fees. Individuals may also direct up to 3.5% of their annual salary income tax to charitable causes.

Salary and salary-assimilated income connected to research and development activity is exempt from personal income tax, subject to conditions that both the employer and the employee must meet.

The annual turnover threshold for mandatory VAT registration in Romania is RON 395,000. The standard fiscal period is the calendar month, but taxable persons whose previous year's turnover did not exceed EUR 100,000 file quarterly instead.

VAT exemption without credit applies to banking, finance, and insurance services, with some financial activities such as factoring taxed at the standard rate instead, and to medical, welfare, and educational activities performed by licensed entities. Separately, exemption with credit, which allows the related input VAT to still be deducted, covers exports outside the EU and intra-Community supplies of goods, among other operations.

Gains from transferring virtual currency are exempt from tax below 200 lei per transaction, provided total gains for the fiscal year do not exceed 600 lei.