Tips will appear on a separate bill, will exclude VAT and will be taxed as the company’s profit, if the employees don’t receive them, or as employee income, if the staff get them, according to a new draft law.

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, reports local Capital.ro.

However, if the employees receive it, it will be taxed at 16% of the income.

Employees will not have to pay social and health contributions for tips.

The company can decide what to do with the tips, namely to keep it or offer it to the employees, according to the bill.

editor@romania-insider.com