VALID FROM 01.01.2020

Taxation in Romania:                                                        from what is calculated

	PFA/II	for PFA system real	for PFA norms
Income tax: mandatory	10.00%	profit (income - expenses)	Norm
Health Insurance: optional (see details below)	10,00%	Minimum wage	Norm
Pension: optional	25.00%	Minimum wage	Norm

note: minimum wage in the economy: 2230 (2080 lei for 2019, 1900 lei for 2018).

The above percentages apply to:
- net income of the PFA in real system (net income = income minus deductible expense)
- the norm established by the tax office for the PFAs on income norms. The rules are here.

Health insurance and pension : mandatory only if:
for PFA in REAL system: in 2020 you estimate or achieve a net income higher than 2230 lei MONTHLY!
for PFA on NORMS: in 2020 the NORM is higher than 2230 lei MONTHLY!

Optionally you can contribute to:
- unemployment fund;
- medical leave;
- contribution for accidents at work and occupational diseases;

Total cost for the same net income (10,000 lei per month):

Taxation in Romania	Annual net salary / INCOME	contributions + taxes	total employee cost	health insurance situation + pension	grad fiscalitate( din net *)	degree of taxation (gross salary **)	Other costs (approximately 150-250 lei per month)
employee	120,000	89,645	209,646	insured	74.7 %	42.7 %	Ssm,Psi – 450
Microenterprise	120,000	10,433	130,433	NEinsured	8.6 %	8.0 %	3-400 lei
Micro with employee	120,000	17,034	137,034	insured	14.2 %	12.4 %	3-500 lei
PFA Real system	120,000	19,980	139,980	insured	16.6%	14.2%	3-400 lei
PFA norms ***	120,000	10,260	130,260	insured	08.5%	07.8%	2-300 lei

* = contributions / net salary
** = contributions / total salary fund
*** = only for certain CAEN codes. The norm differs between 20,000 and 40,000 annually. Calculation for a norm of 30,000 lei

Pentru mai multe informatii va rugam sa ne contactati.