In Romania, a new law was passed on the taxation of tips
In Romania, the House of Representatives adopted a new law on the taxation of tips on Tuesday, after a similar law was withdrawn after a few months in 2015.
![](https://trademagazin.cdn.webgarden.io/wp-content/uploads/2022/12/pexels-anthony-157519.jpg)
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After it was proven that the method could not be applied in practice, the legislation was withdrawn after a few months, and in those economic sectors where employees regularly receive tips, they returned to the previously applied flat tax.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
Related news
You can also taste the most delicious Hungarian dishes of the Carpathian Basin on Saint Stephen’s Day
Once again, the visitors of Saint Stephen’s Day can have…
Read more >Annual inflation in Romania accelerated to 5.42 percent in July, food prices rose by 1.71 percent
Annual inflation in Romania rose to 5.42 percent in July…
Read more >The number of tourists in Romania increased by 3 percent in the first half of the year
The number of tourists in Romania increased by 3 percent…
Read more >Related news
A new office responsible for food safety and retail trade can be established under the leadership of Márton Nagy
A new top organization called the National Trade Office could…
Read more >K&H: Almost two-thirds of businesses are planning development
The majority of domestic micro, small and medium-sized enterprises, 61…
Read more >KSH: industrial production fell by 8.2 percent in June
In June 2024, the volume of industrial production was 8.2…
Read more >