Personal deduction

   Individuals who earn income from wages are entitled to a deduction from their monthly net income from wages of an amount in the form of a personal deduction, granted for each month of the taxable period only for income from wages at the place where the basic function is located.

The personal deduction comprises the basic personal deduction and the additional personal deduction and is granted within the limit of the monthly taxable income earned.

The basic personal deduction is granted to individuals who have a gross monthly income of up to 2,000 lei above the level of the guaranteed gross minimum wage in force in the month in which the income is earned. If more than one gross minimum wage is used in the same month, the lowest gross minimum wage is taken into account.

For taxpayers who earn gross monthly income from wages up to 2000 lei above the level of the gross basic wage per country, inclusive, the basic personal deductions are determined according to the following table:  

 For taxpayers who earn gross monthly income from wages above the above-mentioned level, no basic personal deduction is granted.

Who can be a dependant?

– spouse;

– children under the age of 18;

– other family members up to the second degree of kinship (including second degree), as follows:

– parents of the employee or his/her spouse/husband;

– grandparents of the employee or of his spouse;

– grandchildren of the employee in the direct descending line, not including grandchildren of the employee’s brother/sister;

– brothers or sisters of the employee or his spouse.

Conditions: the dependant must have a taxable and non-taxable income that does not exceed 20% of the basic gross national guaranteed minimum wage per month, except for the following:

-education grants received by persons attending any form of education or further education in an institutionalised setting;

-prizes obtained by medal-winning athletes at world and European championships and Olympic/Paralympic Games;

-prizes and other entitlements in the form of accommodation, meals, transport and the like, obtained by pupils and students in domestic and international competitions;

-children’s pensions due according to the law;

-social benefits granted according to art. 58 of Law no. 448/2006 on the protection and promotion of the rights of disabled persons.

If a person is supported by more than one taxpayer, the amount representing the basic personal deduction is attributed to one taxpayer only, according to the agreement between the parties.

For minor children of taxpayers, the amount of the basic personal deduction is attributed to each taxpayer in whose care they are.

 Individuals owning agricultural and forestry land of more than 10,000 m2 in hilly and mountainous areas and more than 20,000 m2 in mountainous areas are not considered dependants.

The additional personal deduction is granted as follows:

–15% of the basic gross national minimum wage guaranteed in payment for individuals up to 26 years of age, who earn income from salaries up to 2,000 lei above the level of the basic gross national minimum wage.

–100 lei per month for each child up to the age of 18, if the child is enrolled in an educational establishment, to the parent who earns income from wages, regardless of the level of such income.

The additional personal deduction of 100 lei per month will be granted only to one of the parents, if the child is supported by both parents, upon presentation of the document certifying the child’s enrolment in school and a declaration on own responsibility from the beneficiary parent.

 Who can become co-insured in the health system?

– husband

– wife                                     

– parents

In this capacity, they do not pay health contribution, but benefit from medical services in the health insurance system.

Conditions: they are in the care of an insured person; they do not own agricultural or forestry land of more than 10,000 square metres in a hilly or mountainous area.

 Co-insured persons may not have co-insureds.