Taxes in Romania

Romania's tax administration is mainly associated with ANAF, the National Agency for Fiscal Administration. Local authorities also handle certain local taxes, such as taxes connected with property, land, or vehicles. Income tax can apply to salary, independent work, business activity, rent, investments, or other sources. The calculation and reporting method depends on the type of income and the person's or entity's status. Employees commonly see deductions and social contributions handled through payroll. CAS is associated with the public pension contribution, while CASS is associated with public health insurance contribution. A person working independently may use a form such as PFA, persoană fizică autorizată. A company may use a form such as SRL, societate cu răspundere limitată, with different accounting, reporting, and tax responsibilities. TVA is Romania's value-added tax, charged through many taxable sales and services. Businesses registered for TVA generally manage it through invoices, records, and tax reporting under the applicable rules. Fiscal residence helps determine where a person's worldwide income or a company's activity may be considered for tax purposes. Cross-border work, residence, property, or income can create additional questions. Tax administration usually involves registration, keeping evidence, calculating obligations, submitting declarations where required, and paying by the applicable method. Invoices, contracts, payroll records, receipts, and accounting documents can support the declared figures. Tax rules can change and special cases are common, especially for self-employment, companies, foreign income, property transfers, and family situations. When the facts are complicated, a Romanian tax professional or ANAF clarification can prevent expensive mistakes.