Tip to be taxed in Romania

Tip to be taxed in Romania – the Romanian government adopted the emergency regulation on the matter on Wednesday in Bucharest.

According to the provision, the commercial units must register the tip on a separate receipt. The tip will be taxed with 16 percent, because the corporate income tax is 16 percent in Romania, and now the tip also counts as a taxable income.

The tip, however, is VAT-free and, if it will be distributed among the employees they do not have to pay higher social security contributions afterwards. (MTI)