1. Who has an annual tax filing obligation in Romania?
The tax return must be filed by:
For more details regarding the tax residency concept, and its applicability in Romania, you can check our article here: Romanian tax residence explained in details.
The annual tax return must also be submitted by Romanian citizens or foreign citizens living in Romania who derive no reportable income, and who would like to voluntarily insure in the Romanian public health system. The health insurance contribution must be declared and paid via annual tax return filing procedure.
2. What types of income do I have to declare?
Any personal income that you derive as an individual, from activities such as:
For more information regarding each type of income and its tax treatment as per the Romanian tax law, you can also visit our Tax Guide.
3. Do I also have to declare my salary income through the annual tax return?
Salary income is not reportable through the annual tax return, but only on a monthly basis, through monthly withholding that must be done by the employer, or through monthly tax return filing done by the employee (i.e. applicable for salary received from any non-resident employers for activities rendered in Romania). Please refer to our article Monthly salary tax return – how do expats declare salary taxes in Romania?, for detailed information on declaring salary received from non-resident employers.
4. Is there any minimum income for which I can be exempt of Romanian taxes?
As general rule under the Romanian tax legislation, there is no general minimum threshold that is free of tax. Income tax is due on the entire income derived, with only certain tax free thresholds applicable for some types of income (e.g., income from prizes).
Also, a non-taxable threshold is currently applicable only for the health insurance contribution that is due on certain types of income.
5. Which is the filing deadline for the annual tax return in Romania?
Romanian annual tax return must be reported and paid by every individual until May 25th of the following year. Nevertheless, Romanian authorities can extend the standard deadline, as follows:
- for tax year 2018, the filing deadline was extended to 31 July 2019;
- for tax year 2019, the filing deadline was extended to 30 June 2020.
6. Can I extend the annual tax return filing deadline?
Extension of the tax return submission deadline is possible only by law amendment (by authorities). There is no option for extension that can be exercised by each individual.
7. Which is the deadline for paying the taxes? Is it the same or different?
Deadline for the tax payment is the same as for the tax return filing deadline. As the annual tax return filing system is based on a self-assessment system, the taxes you calculate and declare in the tax return can be paid directly until the same deadline.
8. If I derive income from other countries, how can I check if provisions of a double tax treaty apply?
You can get information on the applicable tax treaty from our Romanian Tax Treaties Repository. Tax authorities’ websites are also providing such information. For example, we usually check tax treaties in the Romanian Tax Authorities (ANAF) online repository, which you can find here: Conventions for the avoidance of double taxation concluded by Romania with other states. The page and the treaties are only in Romanian language, but hopefully there will be an English version pretty soon.
Similarly, you can check on the tax authorities’ website in your home country, as they may have a similar database online. Or, if you are resident of an EU member country, you may also check the list of tax treaties concluded by all EU member countries on the European Union’s website, here.
9. What is the tax year in Romania? Is it the calendar year, or different?
The Romanian tax year is the calendar year (1 January – 31 December). any income derived during this interval must be declared through the annual tax return until 25 May of the next year (unless the deadline is extended by authorities, as exemplified above).
10. What are the available means for submitting the tax return with the authorities?
The tax return can be submitted online, by the two following means:
It can also be submitted in paper format, as follows:
11. I am tax resident of Romania and I receive dividend income from another country. Do I have to declare them in Romania?
If you are tax resident of Romania, then you have the obligation to declare through the annual tax return any personal income you derive, from any country. The dividends you receive from any foreign companies must also be declared in the annual tax return.
12. But I already pay tax on dividends in the other country. Doesn’t this mean that I will be double-taxed?
If you (or the dividend payer) already pay income tax in the other country on the dividends received, and if a double tax treaty is in place between Romania and the other country, then avoidance of double taxation must apply. Thus, as tax resident of Romania, you must benefit of a foreign tax credit (deduction) in Romania up to the amount of income tax you owe in the other country.
In the same time, the tax treaties generally limit the rate of taxation in the source country to a certain percent (can be 5%, 10% or 15%, depending on the tax treaty). This should be checked in the tax treaty concluded by Romania with the source country of your income, under article regulating taxation of dividends.
13. How can I request for the tax credit in order to avoid double taxation?
This must be done in the annual tax return form, where you will have to complete with the information of the income tax amount due on the dividends in the source country, and the method for tax avoidance (tax credit or tax deduction).
If the tax amount you owe in the source country is higher then what you owe in Romania, then in Romania there will be zero tax due.
14. If there is zero tax due in Romania (due to the tax credit deducted), due I still have to submit the tax return?
Yes, even if the foreign tax credit fully covers the tax amount due in Romania (so that there is no Romanian tax due), you still have to declare the dividend income by submitting the Romanian annual tax return.
15. I would like to submit the annual tax return online. As foreign individual, can I do it through the Virtual Private Space? If yes, how?
Yes, as foreign individual you can submit the annual tax return online, via the Virtual Private Space (in Romanian: “Spațiul Privat Virtual”). You can open an individual account in the Virtual Private Space on ANAF’s website. To do so, you can follow the step-by-step instructions we provide in our article here: How to open an online tax account with ANAF during COVID-19 period.
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