Global

Details

  • Service: Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 11/6/2013

Romania - Income tax of 85% on certain severance payments 

November 6:  Prior rules that imposed an individual income tax rate of 85% on management severance payments have been amended, and now limit this 85% rate with respect to only certain severance payments.

Under an earlier 2013 ordinance, the individual income tax rate imposed on severance payments made to employees that were in management positions, to members of a board of directors, or to management board members was 85%.


A law officially published in October 2013 clarifies that the 85% individual (personal) income tax rate applies only for severance payments made with respect to the Board of the Financial Supervision Authority (Consiliului Autorității de Supraveghere Financiară – ASF) or with respect to a restructuring as a result of the establishment of the ASF.


Read an October 2013 report (English and Romanian) [PDF 284 KB] prepared by the KPMG member firm in Romania: Increased taxation rules for management severance payments clarifies




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