Romania's 2023 Tax Changes and Legal Holiday Calendar

Entrepreneurs and employers in Romania needed to comply with a series of fiscal provisions for individuals that came into effect on January 1, 2023.

Taxation of tips in restaurants

From January 1, 2023, restaurants, bars, and similar establishments were required to include customer tips on tax receipts for taxation at 10 percent. Law 376/2022 applies only to businesses in the restaurant and bar industry and sets fines of 2,000 to 4,000 lei for companies that violate the provision.

Income tax for IT employees

From January 1, 2023, the exemption from the 10 percent income tax for IT employees was extended to high school graduates holding a bachelor's degree who are studying at accredited universities and hired by companies eligible for the fiscal facility. The exemption was also extended to IT professionals in public institutions, and software product development engineers, covering the design, development, and testing of software solutions, were added to the list of exempt professions. This measure was introduced by Order no. 21813/6421/2246/4433/2022.

Income tax on dividends

The tax on dividend income increased from 5 percent to 8 percent for both individual and corporate beneficiaries, from January 1, 2023, under Ordinance no. 16/2022. Dividends distributed based on interim financial statements prepared during 2022 remained subject to the 5 percent rate.

Income tax on stock exchange transactions

Under Law no. 142/2022, the tax withheld at source on income individual investors earn from stock exchange transactions decreased to 1 percent for holdings over one year and 3 percent for holdings under one year. Losses can no longer be compensated against gains, a change intended to encourage long-term investment over short-term speculation.

Deductions for low-income employees

Starting January 1, 2023, under Article 40 of OG 16/2022, a new set of personal deductions applies to low-income employees earning up to the minimum wage plus 2,000 lei. Employees earning the minimum gross wage with no dependents are entitled to a 20 percent personal deduction as a percentage of the minimum wage when calculating the tax base; those with at least four dependents are entitled to a 45 percent deduction. Employees earning the minimum wage plus 2,000 lei with at least four dependents are entitled to a 25 percent personal deduction, and individuals under 26 earning up to that threshold receive a supplementary 15 percent deduction of the guaranteed minimum gross national base salary.

The minimum wage increase

The minimum gross wage in Romania for 2023 is 3,000 lei. After tax exemptions, employees over 26 with no dependents receive a net salary of 1,898 lei, with the company paying a total of 3,063 lei; employees under 26 with no dependents receive 1,943 lei net. Employees with dependents may receive additional deductions. The minimum salary cost for companies rose by 9.1 percent as a result.

Minimum wage in construction

From January 1, 2023, the minimum wage for construction companies rose to 4,000 lei gross per month, a salary cost increase of more than 33 percent for the sector compared to the previous year. Employees receive a net salary of 3,150 lei, with the company paying a total of 4,013 lei per month. Tax exemptions for salaries and income up to 30,000 lei per month continue to apply under OUG 114/2018.

Minimum wage in the agri-food sector

The minimum wage in the agri-food sector did not change in 2023 for workers who were tax-exempt as of June 2022. For non-exempt employees at the 3,000 lei minimum gross wage, the net salary is 2,362 lei, with the employer paying a total salary cost of 3,068 lei. Tax exemptions for salaries and salary-equivalent income up to 30,000 lei continue to apply in this sector.

Income tax from rentals

Starting in 2023, owners renting out properties not used for tourist purposes pay a 10 percent tax on the full value of the rent, replacing the previous rule that allowed a 40 percent deduction from the taxable amount. The new tax, set out in Article 43 of OG 16/2022, applies to income from the transfer of the right to use goods, other than income from leasing and tourist rentals of rooms in personal dwellings. A monthly rent of 1,000 lei, for example, now results in an income tax of 100 lei per month, up from 60 lei in 2022.

Fiscal inspections

From January 1, 2023, Romania's central fiscal authority can issue Compliance Notifications to taxpayers selected for a fiscal inspection. The notification gives the taxpayer 30 days to file or correct their fiscal declarations; failing to remedy the identified fiscal risks within that period results in a fiscal inspection. The Compliance Notification model and procedure are approved by the ANAF President, and selection for inspection is generally based on a risk level analysis, though taxpayers may also be selected at random in exceptional cases.

Legal holidays in 2023

Private companies in Romania observed the following legal holidays in 2023:

• Sunday, January 1: New Year's Day
• Monday, January 2: day after New Year's Day
• Tuesday, January 24: Day of the Union of the Romanian Principalities
• Friday, April 14: Good Friday
• Sunday, April 16: Orthodox Easter
• Monday, April 17: second day of Easter
• Monday, May 1: Labor Day
• Thursday, June 1: Children's Day
• Sunday, June 4: Pentecost
• Monday, June 5: second day of Pentecost
• Tuesday, August 15: Assumption of the Virgin Mary
• Thursday, November 30: Saint Andrew's Day
• Friday, December 1: Romania's National Day
• Monday, December 25: Christmas
• Tuesday, December 26: second day of Christmas

Sources: Law 376/2022, Order no. 21813/6421/2246/4433/2022, Ordinance no. 16/2022, Law no. 142/2022, OUG 114/2018