Study: Taxes in Romania, among lowest for high earners, highest for low income

Romania ranks among the countries with the lowest taxes for those with revenues of up to USD 200,000 a year, found a recent study by UHY International. The country ranks 17th out of 20 analyzed countries in terms of taxes for revenues of USD 200,000 a year, but the taxation is much higher for those who make USD 25,000 a year in Romania, comparedto other countries. Only Egypt, Russia and Dubai apply lower taxes to a yearly income of USD 200,000. The taxes include the income tax and the social contribution. “The low taxes applied in Romania to those with high income has turned the economy more competitive […]. Companies look at taxation when deciding to invest in a certain place,” said Camelia Dobre, partner with UHY Audit CD in Romania. Those with low income in Romania would pay seven times higher taxes then those with the same revenues in Ireland, the country with the lowest taxation in the study, based on a USD 25,000 yearly revenue, which is considered a low income. According to UHY tax professionals, many countries use tax policy to attract and retain high-earning taxpayers as an important engine of economic growth and source of revenue. The research highlights the need for some countries to work harder to become more attractive to the highly compensated, an increasingly mobile group who may factor in tax burden when deciding domicile. Read the original study result here. editor@romania-insider.com