Law No. 32 Of 29 March 1991 * Reissued The Tax On Salaries

Original Language Title:  LEGE nr. 32 din 29 martie 1991 *** Republicată privind impozitul pe salarii

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LAW No. 32 of 29 March 1991 * reissued the tax on salaries published in PARLIAMENT ISSUING the OFFICIAL GAZETTE NR. 185 of 2 august 1996 Note *) Republished pursuant to art. IV of the Government Ordinance. 8 of 23 January 1996, published in the Official Gazette of Romania, part I. 21 of 30 January 1996.

Law No. 32 of 29 March 1991 was published in the Official Gazette of Romania, part I, no. 70 of 3 April 1991 and amended by law No. 46 of 4 July 1994, published in the Official Gazette of Romania, part I, no. 171 of 6 July 1994 by order No. 17 of august 4, 1996, published in the Official Gazette of Romania, part I, no. 186 of 17 august 1995 (approved and amended by law No. 122 of 15 December 1995, published in the Official Gazette of Romania, part I, no. 293 of 19 December 1995), by law nr. 135 of 29 December 1995, published in the Official Gazette of Romania, part I, no. 303 of 30 December 1995 and by order No. 8 of 23 January 1996, published in the Official Gazette of Romania, part I, no. 21 of 30 January 1996 (approved and amended by law No. 54 of 21 June 1996, published in the Official Gazette of Romania, part I, no. 134 of 27 June 1996) and has been republished in the Official Gazette of Romania. Part I, no. 140 of 29 June 1993 and no. 19 of 26 January 1996.


Article 1 Proceeds in the form of salaries and other wage made by Romanian or foreign natural persons, on Romanian territory, are subject to tax under the provisions of this law.
It is considered wages made Romanian wages paid in cash and in kind, received by employees from natural or legal persons having their domicile or headquarters in Romania, as well as the salaries received from abroad by persons who operate in Romania.
Are not subject to the provisions of paragraph 1. 1 and 2 salaries and allowances in hard currency, in the amount established net paid by public institutions, the Romanian Romanian personnel operates within the framework of diplomatic missions, consular posts and other forms of representation of Romania abroad.


Article 2 Income in the form of salary and other taxable wage shall comprise the totality of the amounts received in the course of a month, regardless of the period to which it refers and which are made of: a) the salaries of any kind;
  

b) rises of any kind;
  

c) allowances of any kind;
  

d) rewards and awards of any kind;
  

e) amounts paid from the social insurance fund in case of temporary incapacity for work and maternity;
  

f) sums paid for annual leave;
  

g) any other earnings, in cash and in kind, received as payment for their labor, to natural or legal persons, as appropriate, to which they are employed, including those provided under the collective labour contract, except those in the nature of household staff employee granted;
  

h) amounts paid to employees in the form of indexing or compensation, as a result of rising prices and tariffs;
  

I) amounts paid to founding members of a company, established by public subscription of participation in net profits, according to art. 30 of law No. 31/1990.
  

Evaluation of the products awarded as payment is made to the selling price for products in their own production and supply, prices for other products and services, on the basis of tariffs for these services. Prices and tariffs are those ruling at the date of payment in kind.


Article 3 by way of derogation from the provisions of the preceding article, salaries and other wage or differences, paid the past is spread for the purposes of taxation, on the months they cover cumulându with other duties received in the months in question, in the following situations: a) in the case of a final court ruling;
  

b) pursuant to the provisions of art. 15 of this law;
  

c) in the case of impossibility of the monthly payment of wages due to the lack of available in the bank accounts of the debtor's wages;
  

d) in the case of finalising the disbursements on the basis of research and design;
  

e) in the case of benefits related to the holiday, when its duration is conducted over a period of more than one calendar month;
  

f) in the case of sums paid on the basis of the provisions of art. 2(a) I);
  

g) in the case of differences in salaries relating to previous periods in months to be paid, granted on the basis of the normative acts concerning remuneration.
  

The amounts of the annual award granted by the law, the staff of public institutions and those representing the incentives of profit-sharing, granted according to the law, the employees of economic agents and managers, after the approval of the balance sheet, as well as the amounts granted under the law for the rest of the leave is not taxable under the provisions of the present law, separate from the other rights granted in the month in which payment thereof.
Monthly wage rights obtained by teaching staff from the same unit, besides the corresponding wage norm related teaching tool, shall be taxed separately, without having to apply, in their case, the provisions of art. 7(b). c). Article 4 shall be taxed, under the present law, the following rights in money and in kind, to the proper individuals: a) the earnings of employees or temporary laborers;
  

b fees of lawyers) collected through the bars;
  

c) rights of physicians and medical staff due from polyclinics with payment;
  

d) revenues from collaborations of any kind;
  

fees collected from e) surveys of any kind;
  

f) rights due to inventions and innovations.
  

Amounts paid in respect of inventions and innovations in the course of a calendar year shall be divided for the purposes of taxation on the 12 months of the year, cumulându with other rewards of this nature paid during the year in question, even where the amount is in respect of a period greater than one year if the amount paid is in respect of a period of less than one year It spread, with a view to the imposition, on the months to which it refers. These rights not be cumulated, for taxation purposes, other income to the unit where employees have basic function.


Article 5 the income of individuals resident in Romania, in the form of salary and other pecuniary rights of nature, for activities abroad, with quotas and under the conditions provided for in art. 8. Article 6 shall not include in taxable income and are not required to): amounts paid under contracts, statutes or laws, in connection with the transfer or the transfer of the interests of the service of an employee in another locality, amounts paid for travel expenses in the interests of the service, as well as the allowances to be paid to the employment function;
  

b) amounts received by employees for work performed in the period of the notice of dismissal, as well as the compensation awarded to employees made redundant in connection with the restructuring of the economic agents, regardless of their form of ownership. The conditions for the granting of compensation not subject to payroll tax shall be adopted by decision of the Government;
  

c social and other) aid helpers what is granted according to the law, from the State social insurance budget, except for amounts paid under art. 2(a) (e)), from the State budget and local budgets or special funds constituted according to the law on public finance), as well as aid to fund salaries for employed mothers births and death of employees;
  

d) pensions of any kind;
  

e) allowances, allowances and any amount of this nature, granted according to the law, people with children, with the exception of those referred to in article 2(a) e) and maintenance allowances granted to persons to whom they were given in family placement or were entrusted to minors;
  

f) get free meal and nutrition, the antidote law;
  

g) earnings in nature referred to in article 1. 2(a) g) granted at present by the autonomous administrations to employees who receive subsidies for products and activities from the State budget, as well as those granted under the law on public institutions financed from the State budget;
  

h) amounts for additional pension contribution and the contribution due from employees to fund for paying unemployment benefit, as laid down by law.
  

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Notă


*) Legea nr. 72/1996 concerning public finances, as published in the Official Gazette of Romania, part I, no. 152 of 17 July 1996, repealed the law. 10/1991 on public finances.


Article 7 shall be exempt from paying the tax provided for by this law, the following categories of persons: a) foreign press correspondents, for the salaries they receive, under the condition of reciprocity;
  

b) students, students and PhD candidates, for scholarships;
  

c) persons who, during the same month, get income in the form of salaries and other wage up to 97,000 leis *), from where they function. The increase, through regulations, the minimum gross basic salary per country, the sum of the above changes properly;
  

— — — — — — — — — — — — — — — — — — — — — — — — * Note *) see Judgment No. 594 of 22 July 1996, published in the Official Gazette of Romania, part I, no. 162 of 25 July 1996.


d) war veterans, war widows and nerecăsătorite of widows of war veterans;
  

s) descendants of Heroes-martyrs of the revolution, you as well as holders of the Fighter for the Romanian Revolution of December 1989, conferred by the patent, for the income within the basic function;
  

f) within the military, students and military students for money received;
  

g) degree invalids or the work, in accordance with the legal provisions, as well as disabled in the establishments of I or II disability, defined according to law No. 53/1992 on the protection of disabled persons, solely on the basis of certificates issued by medical expertise commissions and recovering work capacity, as provided by law, and shall certify that the invalidity does not prevent the exercise of the profession or function.
  

Issuance of certificates attesting to the disability or condition of handicapata person is done only by medical expertise commissions and recovering work capacity.
Exemption from tax shall be granted in respect only of income of employees at the unit that have basic function.

h) persons referred to in art. 4 of Decree-Law No. 118/1990, republished, for the income at the unit at which they function. The provision shall also apply to persons who, on the date on which they were in one of the situations referred to in article 1. 1 of Decree-Law No. 118/1990, republished, were minor;
  

I) foreign individuals performing consultancy activities in Romania within the framework of financing agreements concluded, the Romanian Government with other Governments or international organizations, governmental or non-governmental organizations;
  

j) donors of blood or plasma, for amounts received, representing the counterpart holidays granted according to the law, for the donation of blood or plasma;
  

k) athletes, coaches and athletes, technicians for the premiums due to the achievement of the following objectives: high performance-ranking catwalk premiere of European and World Championships, Olympic Games;
-the qualification and participation in European Championships, world and Olympic Games;
-participation in European competitions for upper stages of UEFA, starting with the 1/8 finals.
Exemption from tax shall be granted beginning with the outstanding pay claims relating to pay for the month following that in which the persons concerned shall record the applications through which deposit documents that certify the fulfilment of the conditions prescribed by law.
Review certificates for attesting the status of invalid or handicapata person is done within 60 days *) from publication in the Official Gazette of Romania Government Ordinance. 17, 1995, the period during which retain validity of certificates previously issued and unexpired.
The exemptions referred to in d), (e)), g) and (h)) shall be granted only within the limit of a gross monthly income of up to 6 times the minimum gross salary per country. If this limit is exceeded, the tax is calculated from the total amount of which shall be deducted income tax related to those 6 gross minimum wages per country.
— — — — — — — — — — — — — — — — — — — — — — — — — * Note) according to art. The Government Ordinance. 8 of 23 January 1996:-the deadline of 60 days stipulated by Government Ordinance. 17/1995, approved by law No. 122/1995 and 17 October 1995, provided for a review of accreditation certificates of disability or the person handicapata, shall be extended until 31 March 1996, subject to the following conditions: (a) persons who present) in this new time limit for reviewing certificates and fulfil the criteria laid down by law, to receive a new certificate which give entitlement to exemption from tax on salary and receive such a certificate will benefit from this exemption from date of entry into force of this Ordinance;
  

b) persons for whom, posing under the new term set out in this Ordinance the medical expertise commissions and recovering work capacity, will no longer be recognized according to criteria established by the legal provisions in force, employment in one of the categories of persons who are unable to benefit from this exemption shall cease as from the date of the first of the month in which they were presented to the Commission.
  


Article 8 tax on salaries is calculated monthly on every job, on all income achieved during the month that each employee has expired, on the basis of the following odds: the taxable monthly income * Tax * monthly *))-lei-lei-10,400 5% 10,401-11,500 520 + 8% of what exceeds the amount of 10,400 lei 11,501-15,400 608 + 14% of what exceeds the sum of 11,500 lei-15,401 26,300 1,154 + 17% of what exceeds the sum of 26,301 42,800 3,007 15,400 lei-18% + What exceeding MDL 63,900 5,977 26,300 42,801-+ 19% of what exceeds the sum of 108,000 9,986 42,800 lei 63,901-+ 20% of what exceeds the amount of 63,900 lei 108,001-150,700 18,806 + 21% of what exceeds the sum of 108,000 lei 150,701-214,200 27,773 + 22% of what exceeds the amount of 214,201 lei-150,700 321,200 41,743 + 25% of what exceeds the amount of 214,200 lei 321,201-429,300 68,493 + 28% for what exceeds the amount of 321,200 lei 429,301- 535,900 98,761 + 32% of what exceeds the amount of 429,300 lei 535,901-613,600 132,873 + 36% of what exceeds the amount of 535,900 lei 613,600 160,845 + over 40% of what exceeds the amount of 613,600 lei — — — — — — — — — — — — — — — — — — — — —-* Note *) cuts the taxable income and tax rates applicable beginning with the payment of the salary for July 1996 are reproduced as they were approved by Government decision No. 542 of 5 July 1996, published in the Official Gazette of Romania, part I, no. 143 of 8 July 1996.

Part of the total of the taxable monthly income which exceeds the level of 1,148,400 lei *) is subject to a quota of 60%.
If, by applying these rates of tax, net monthly income of an employee in the unit where it does function, it would reduce the revenue referred to in article 1. 7(b). (c)), the income tax shall be reduced so as to ensure the achievement of that income.
In the case of wages and other entitlements, as well as salary of some pecuniary rights (as referred to in article 2 and 4 of this law), in foreign currency, the tax payable shall be calculated by conversion into lei, at the exchange rate in force on the last day of the month for which the payment is made after tax in lei, established on the basis of paragraph 1. 1, transforms, it retains and spill from the State budget, at the same course.
Once the indexing, as well as the granting of salary compensation, the Government will properly modify the cuts monthly income taxable under paragraph 1. 1, the amount set out in paragraph 1. 2 and 3 of this article, as well as of the amount referred to in article 1. 7(b). c) of this law, so as not to undo or compensate for the effect of indexation.
— — — — — — — — — — — — — — — — — — — — — — * Note) see Judgment No. 542/1996.


Article 9 tax payers of salaries are calculated and monthly amounts are withheld due to the second chenzina.
Pecuniary rights of category set forth in art. 4 of this law, the tax shall be calculated and withheld from each payment, through combination with the amounts paid out previously during the same month by the payer.
Where the payer has bank account, tax is withheld and spill once the amounts for the payment of the second chenzine.
Banks are required to verify, in connection with the haul amounts to pay salaries in the country or abroad by the times, withholding and paying for the budget of the central public administration payroll tax.


Article 10 Romanian natural person has the right to deduct from the tax on wages due in Romania to an amount equivalent to the tax on wages and salaries from external source, paid directly or through restraint abroad-based documents certifying payment, confirmed by the tax authorities of the country in which it operates. This amount shall not exceed the amount of tax on wages, calculated according to the tax laws in force in Romania.


Article 11 salaries tax withheld in addition shall be returned to the person concerned of their employees within 30 days from the date of establishment plusului.
Refund amounts withheld in addition can be done over a period of 3 years following the date of apprehension.
The tax on wages and severe at the time or in the amount of legal income is withheld by the payer, from their respective employees, over a period of 3 years following the date of the finding. Detention can be made in equal instalments not later than 12 months from the date of establishment nereţinerilor.
Where the tax on wages can no longer be recovered by the employee in the case, the payer of salary support.


Article 12


Natural or legal persons who, in the exercise of the activity of the employees use are required to submit quarterly financial authorities in whose territory they have their headquarters or domicile of a calculation, withholding and paying for the budget of the central public administration payroll tax. Businesses with special profile, defined according to the law, will be submitted this release of the Finance Ministry.


Article 13 For nevărsarea-term payroll tax applies a 0.3% increase for each day of delay).
— — — — — — — — — — — — — — — — — — — *) Note see Order No. 11 of 23 January 1996, published in the Official Gazette of Romania, part I, no. 23 of 31 January 1996.


Article 14 Control of, retention and payroll tax paying shall be carried out by the tax authorities that those salaries are required to submit records of account of the bloodshed, apprehension and payroll tax.


Article 15 against the way in which the provisions of this law shall be applied by individuals or legal entities to which they are employed, they can go with their complaint directly, within 30 days from the date of apprehension. Natural person or legal entity who has made hiring is obliged, within 30 days from the date of registration of the complaint, to proceed to review the mode of determining the taxable monthly income and paying tax and to issue a decision on the results of reverificării. The decision shall be communicated to the employee in question.


Article 16 within 30 days from notification of the decision given by the one who did the hiring, the employee can make opposition addressed the General Directorate of public finance and financial control by the State, on whose territory it has its domicile or seat of the person or legal entity whose employee is being obliged to resolve within 30 days of registration. The resolution of the appeal shall be made by means of a decision which shall be communicated to the employee in question.
Within 30 days of the communication of the data, against the decision of the General Directorate of public finance and financial control by the State, the employee may appeal to the Minister of finance, that, within 40 days of the registration, is required to resolve it. The solution to date the Ministry of Finance shall be final and shall be communicated to the employee in question.


Article 17 income tax Appeals and calls on salaries are exempt from the payment of stamp duty.


Article 18 the Ministry of finance may not, in duly justified cases, phased over or delays the payment of payroll tax and phased over, delays, cuts or exemptions from paying penalties for delay.


Article 19 Constitute offences the following acts, if, according to the criminal law, are not considered offences: a) failure, within 30 days after the end of the semester, the statement of account relating to the calculation of the withholding tax, payroll and bloodshed;
  

b) a refusal to make available to the tax authorities documents relating to the method of calculation, restraint and pouring from the State budget of tax on wages.
  

That offence; the fine shall be imposed) at 200 000 lei from 1,000 000 lei, while the rosé wines. (b)), with a fine of 600 000 to 2 0000 0000 lei lei.
Finding contraventions and enforcing the fines provided for in this law shall be carried out by specialized bodies of the Ministry of Finance and its territorial units within a period of 3 years from the date of the facts in question.
Finding documents drawn up by the bodies empowered to establish and enforce fines constitute enforceable, according to law, after their final possession.
Banks will implement these securities without the consent of payers.


Article 20 the provisions of law No. 32/68 on the establishment and sanctioning of offences, with the exception of art. 25, 26 and 27 shall apply in the case of offences referred to in articles. 19 of this Act.


Article 21 pending entry into force of this law, the Ministry of finance will elaborate methodological instructions concerning the technique of calculation of salaries tax, the appropriate forms used the functions and responsibilities of the tax authorities concerning the application of this law, which will be published in the Official Gazette of Romania).
— — — — — — — — — — — — — — — — — — — — — — — *) Note see Order No. 1,363 of 10 November 1993 by the Minister of State, Minister of finance, published in the Official Gazette of Romania, part I, no. 273 of 26 November 1993.


Article 22 Appeals pending at the jurisdictional organs, administrative or judicial resolve according to the legislation in force at the date of establishment of the offence.


Article 23 where, for the avoidance of double taxation, there are conventions or other international agreements to which Romania is a party, applies in respect of the tax on wages and provisions of those conventions or agreements.


Article 24 entry into force of the present law shall repeal the law. 1/1977 on the tax on the total remuneration from the State Socialist art. 16-18 of law No. 2/1977 on agricultural tax, art. 3 of law No. 4/1990 concerning remuneration and other rights of the President, senators and deputies, art. 9 and the annex. 2 of Decree No. 279/1983 on regulating health care pay, Decree nr. 409/1985 on the increase of the contribution of persons with no children, art. 3 to 7, 9 and 10 of the judgment of the Council of Ministers No. 545/1970 concerning regulation of taxes on the income of the population, art. 7, art. 14. 3 and annex 4. 3 of Government decision No. 1.222/1990 concerning taxes and fees applicable to representatives of companies from Romania or foreign economic organizations, Government decision No. 52/1991 on the payroll tax, and any other provisions contrary to *).
— — — — — — — — — — — — — — — — — — — — * Note) on the date of entry into force of the Ordinance No. 17 of august 4, 1995, published in the Official Gazette of Romania, part I, no. 186 of 17 august 1995, it repealed: art. 7 para. 4 and art. 20-27 of law No. 32/1991 on the payroll tax, republished in the Official Gazette of Romania, part I, no. 140 of 29 June 1993; provisions relating to taxation of individuals in the Government Ordinance. 22/1993 relating to exemption from payment of tax on income derived by foreign consultants for work done in Romania, in the framework of international agreements, governmental or non-governmental funding, published in the Official Gazette of Romania, part I, no. 209 of 30 august 1993, approved by law No. 102/94, published in the Official Gazette of Romania, part I, no. 321 of 18 November 1994; art. 8 lit. l) of law No. 42/1990 for the veneration of the martyrs and heroes-granting rights to their offspring, the wounded, who were detained between 16-22 December 1989 as a result of participation in the actions of the revolution, as well as those who participated directly in the period 16-27 December 1989 fighting for the revolution of December 1989, republished in the Official Gazette of Romania, part I, no. 204 of 21 august 1992; the provisions relating to the tax on wages and salaries from art. 6 paragraph 1. 1 of Decree-Law No. 118/1990 concerning granting rights to persons persecuted for political reasons of dictatorship — established with effect from 6 March 1945, and those deported abroad times company formed in prisoners, republished in the Official Gazette of Romania, part I, no. 310 of 7 November 1994; the provisions relating to the tax on wages and salaries from art. 15 (a). e) of law No. 44/1994 concerning war veterans and some rights of invalids and war widows, as published in the Official Gazette of Romania, part I, no. 172 of 7 July 1994 and article. 11(2). (3) of law No. 4/1995 on blood donation, therapeutic use of human blood transfusion organization in Romania, published in the Official Gazette of Romania, part I, no. 9 out of 19 January 1995.


Article 25 this Act comes into force on 1 April 1991 *).
— — — — — — — — — — — — — — — — — — * Note) and see the dates of entry into force of the normative acts modifying.

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