Romanian Government expects extra revenues from taxing tips

The Government wants to regulate tips, which will appear on a separate bill. It thus hopes to collect this year an extra EUR 34.8 million to the state budget, EUR 67.8 million next year, EUR 72.1 million in 2017, EUR 76.4 million in 2018, or a total of EUR 248.8 million in three and a half years. Each company will choose whether tips will be taxed as the company’s profit, or be given to employees. Tips will be taxed at 16% of the profit or 3% of the income for small enterprises if the company doesn’t distribute to the employees, or 16% of the employee’s income, if the employee receives the tips. Romania wants to tax tips editor@romania-insider.com