In Romania, a new law was passed on the taxation of tips

A new tax for tips

Based on the law, which was voted by a large majority, and only applies to hospitality, tips given by the guest will be charged with a ten percent income tax in Romania. The withholding of the tax is the responsibility of the employer, who distributes the remaining 90 percent to the affected employees in a manner predetermined by internal regulations. In accounting, the tip appears as a “debt”, it does not increase the company’s tax burden.

Restaurants must reserve a separate section for the tip on the bill to be handed over to the guest, and the amount (or proportion) is to be determined by the guest. The value of the tip can vary between 0 and 15 percent of the value of the consumption.
In principle, the law will enter into force on January 1, 2023, if it is announced by the head of state by then.

In Romania, seven years ago they tried a method that levied a 16 percent corporate tax on tip income, but restaurateurs had to register tips on a separate receipt pad, and in addition, employees had to register their own money daily, allowing tax inspectors to impose penalties. , if a discrepancy was observed between the money in the examined store and the amounts billed.
After it was proven that the method could not be applied in practice, the legislation was withdrawn after a few months, and in those economic sectors where employees regularly receive tips, they returned to the previously applied flat tax.

MTI