Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper describes Romania’s Technical Assistance report on reforming personal income taxation. With one of the lowest revenues in the EU and a projected budget deficit exceeding 7 percent of gross domestic product (GDP), Romania should rely on an array of tax instruments to mobilize revenues. The personal income tax (PIT) plays an integral role in the overall reform to balance revenue, efficiency, and distribution considerations. The PIT should be reformed to support revenue and reduce inequality. It is recommended to introduce a new employment income bracket with a moderate top PIT rate, for example of 20 percent. A combination of 20 percent tax on the top decile of the income distribution and the existing 10 percent on the rest of the income distribution raises revenues by 1 percent of GDP, while leaving the majority of taxpayers unaffected. The taxation of the self-employed and microenterprises should be strengthened to close revenue leakages and safeguard the integrity of the tax system. Freelancers are recommended to pay social security contributions on their total net income, possibly up to a cap.

Romania

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper highlights Romania’s Technical Assistance report on improving revenues from the recurrent property tax. The current area-based property tax system in Romania is inefficient, producing revenue below its potential, while the taxable value determination is inequitable and complex. The best guiding principle for the property tax reform is to remind taxpayers that a property tax is in the first instance a benefit tax. Comprehensive property tax reform is complex, requiring both political and technical coordination, informed by realistic timelines. In respect of a recurrent property tax, there are two broad approaches to determine a taxable amount. The first approach—value-based assessment—utilizes methods and techniques that rely on market transactions to inform the value of property. It is generally agreed amongst experts that where it is possible to use the market-value approach in practice, since it provides the better, more buoyant, and more equitable tax base. A value-based assessment tends to better differentiate the tax burden between low-income and high-income households—accounting better for ability-to-pay or vertical equity.

Romania

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Romania --- Romania.

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Romania --- Transylvania (Romania) --- Romania. --- History

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Romania --- Romania. --- History