Tax system for Ukrainians in Romania

Специалист практик миграционного и корпоративного права также специализируется на юридическом сопровождении бизнеса в странах ЕС.

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Tax system for Ukrainians in Romania

Reading time: 3 min.

In the world of globalization and international mobility, as well as modern conditions, Ukrainians often choose work or study opportunities abroad.

Romania has become one of the most popular countries for Ukrainians. However, with moving comes the issue of taxation.

So let's consider the main aspects of the taxation system for Ukrainians living and working in Romania.

First of all, tax residency is important for determining tax liability in Romania.

A person who stays in the country for at least 183 days in a calendar year is considered a tax resident of Romania.

If a person is not a tax resident of Romania, he pays tax only on the income received in Romania.

[caption id="attachment_22757" align="aligncenter" width="1024"] BRASOV, ROMANIA - APRIL 2022: The Romanian townhouse in the city of Brasov with the Romanian flag[/caption]

Legal status and taxation of the workplace

Ukrainians working in Romania should understand their legal status and duties in the field of taxation. This includes registering for work, choosing a form of employment (employment, self-employment), and income tax obligations.

One of the main aspects of the taxation system is the personal income tax. The article will consider the rates of this tax, as well as the specifics of its payment for foreigners working in Romania.

Ukrainians should also be familiar with the social insurance system and pension payments in Romania. This is important for understanding the general social infrastructure and ensuring your social protection in the host country.

The main tax rates in Romania are as follows:

  • Personal income tax (Impozitul pe venitul din salarii și pensii) - progressive rate from 10 to 55%.
  • Value-added tax (TVA) - a single rate of 19%.
  • Property tax (Impozitul pe proprietate) - depends on the value of the property.
  • Inheritance and gift tax (Impozitul pe succesiuni și donații) - progressive rate from 5 to 35%.

Regarding tax benefits and exemptions - consider the possibilities of obtaining tax benefits and exemptions for Ukrainians in Romania.

This may include examining tax credits, exemptions for certain types of income, and other opportunities to reduce the tax burden.

Example:

  • Tax discount for family expenses (granted to families with children).
  • Tax discount for education expenses (granted to persons studying in educational institutions in Romania).
  • Tax discount for health care expenses (granted to persons undergoing health care in Romania).

Regarding tax accounting and declaration. Ukrainians should know the tax accounting and declaration procedures in Romania.

This is important for timely and correct taxation and for avoiding possible sanctions.

At the same time, we would like to draw your attention to the existing international tax agreements between Ukraine and Romania and their impact on the taxation of Ukrainians' incomes in Romania.

This may include aspects of the avoidance of double taxation and other international taxation matters.

Therefore, a general overview of the taxation system for Ukrainians in Romania turns out to be a difficult task that requires citizens to carefully study and comply with tax norms and rules.

Understanding these aspects allows citizens to effectively manage their finances and maximize tax benefits in their new country of residence.

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