TAX SYSTEM AND TAX POLICY OF

ROMANIA
"Nicolae Bălcescu" Land Forces Academy, Sibiu, Romania

Presented By:
Luca Ioana
Afodorcei Andreea
Sântejudean Maria-Daiana
CONTENTS
Tax policy

Particulars of the system

tax in Romania

General notices regarding

taxes and fees

Taxation

Conclusion

References
The fiscal policy of the state is a certain conception of the state,
as well as a set of measures and actions concerning the role of
taxes in the budget revenue system, the types of taxes, their
collection and the way they are used as an instrument to
stimulate economic growth, the way fiscal efficiency is thought
in the country. The fiscal policy of the state is a
certain conception of the state, as well
as a set of measures and actions
concerning the role of taxes in the
budget revenue system, the types of
TAX POLICY taxes, their collection and the way
they are used as an instrument to
stimulate economic growth, the way
fiscal efficiency is thought in the
country.

Tax policy is a basic component of economic policy which,

through the system of taxation and imposition, aims to
influence economic activity at the aggregate level. It
encompasses all measures relating to the amount and use of
taxes in an economy.
 PARTICULARS OF THE SYSTEM
TAX IN ROMANIA

The national economy of a country includes all activities

carried out by individuals or groups of natural or legal
persons who belong to it, but in which certain economic
subjects of others also participate partner countries.

In each country there may be a set of

relations of production, exchange, distribution,
use, financing, lending that manifests itself in
the form of some real, monetary, and financial
flows.
 The components of the fiscal system
are as follows:

Taxes and fees A A

The fiscal mechanism B

Fiscal regulations C B C
The fiscal apparatus D
D E
The relationship between the E
components
 THE FUNCTIONS OF THE TAX SYSTEM
ARE DEFINED AS FOLLOWS:

The function of financing public expenses

Representing taxes the main source of financing
public expenditure
Incentive function
Tax laws may provide facilities in the form of
discounts or payment exemptions

Social function
Social protection is pursued through this fiscal
system of disadvantaged people

Control function
Control over the activity of economic agents is
exercised by the state
THE The principle of universality
BASIC
Unity
TAXATION
Equity
PRINCIPLES:
Stability

Flexibility

Legality

Territoriality

The non-retroactivity of the tax law

Simplicity

Yield
 GENERAL NOTICES REGARDING TAXES AND FEES

In accordance with law 227/2015 on the Fiscal Code, in the content of title IX of
chapter I, article 454, local taxes and fees are represented by: "building tax, land tax,
transport tax, release tax certificates, approvals and authorizations, the fee for using
the means de-advertisement and advertising, show tax, special duties and other
charges local."

These are considered to be monetary obligations, established unilaterally

through the financial-fiscal legislation, which is put in charge taxpayers,
earning income or owning taxable assets.

They are considered instruments of justice fiscal, but also

instruments that have an influence on inflation through
direction the behaviors of economic agents and all taxpayers
regarding the use of both resources and goods and services.
 Common elements specific to taxes

Payment The object of The unitary

amount of The way of
facilities the budget
budget income collecting taxes
income

The taxable The subject of Payment Rights and

base taxable term obligations of
income payers
 SANCTIONS

Contravention Interests and

fines late penalties

Criminal liability Material liability

 TAXATION – SYSTEM OF CONTRIBUTIONS IN
ROMANIA
To make it easier to understand the tax system, both fees and taxes are
divided according to the budget classification corresponding to the
order in which they are entered in the state and local budgets.
 Revenues
due to local
Tax of budgets
transport

Excise

Profit
The show tax Value
tax
Income added tax
from
capital
Income
tax
Land
tax THE STRUCTURE OF BUDGED
REVENUES
CURRENT INCOME

These are paid by taxpayers in the know: the

tax on profit, income from wages, independent
activities, transfer of use goods, dividends and Current
interest, agricultural activities, building tax, tax income
on means of transport, tax and land tax.

Tax Non-tax
revenues revenues

Direct Indirect
taxes taxes
INCOME FROM CAPITAL

Collection of
direct taxes

The income
Taxable
of state
matter
budget

The nature The origin

 PROFIT TAX
The taxable profit is calculated as
the difference between the
incomes made from any source
and the expenses incurred for the
purpose of making incomes,
from a fiscal year, from which
non-taxable incomes are
deducted and to which non-
deductible expenses are added.
INCOME TAX
The system of separate taxation can
be applicable either by establishing
a single income tax, within which a
differentiated taxation is mentioned
for each category of income, or
through the establishment of
several taxes, each of which covers
the income obtained from a certain
source.
EXCISE

Harmonized excise taxes are special

consumption taxes, due to the state budget
for the following categories of products
from domestic production or from import:
o Beer, wines
o Fermented drinks
o Intermediate products
o Ethyl alcohol
o Processed tobacco
o Energy products.
VALUE ADDED TAX

Value added tax (hereinafter referred to as VAT) is the

contemporary method of taxation, which replaced the tax in
Romanian the movement of goods and removed the cascading
taxation of goods and of the products, which admitted the type of
taxation, the same product in relation to the way of production or
its destination.
In the regulations of the Fiscal Code, two important quotas are
provided of taxation, namely: the standard rate of 19% and the
reduced rate of 9%.
 CONCLUSION

In Romania tax can be seen as a normal and non-

refundable contribution due by taxpayers for the earned income.
The set of measures and actions undertaken by the state through
an appropriate fiscal policy regarding the role taxes and fees
form the fiscal system. So, on the economic level, fees and
taxes have a way important of taking part of the income of
natural persons and legally being at the state's disposal to be
able to cover the expenses public.
 BIBLIOGRAPHY

Authors
 N. Hoanța, Tax evasion, Ed.a2a, Bucharest, CHBeck Publishing House, 2010, p.37
 C. Corduneanu, op.cit., p.19
 The fiscal code, accessed on 12.03.2019, Title 1,head. 3, art. 7
 MA Ungureanu, (coord.), Public finance - summaries and applications, 3rd Edition,
Publishing House Conplys, Râmnicu Vâlcea, 2009
 C. Bucur, Taxation - course notes -, Bucharest, Publishing House Pro Universitaria, 2011,
page.15-17
Legislation
 The fiscal code, accessed on 12.03.2019 Title 1, ch. 3, art. 7
 The fiscal code, accessed on 14.03.2019 title 9, chapter. 1, art. 454
 Law no. 227/2015 on the Fiscal Code, with subsequent amendments and additions, title 4,
art. 67-75, accessed on 15.05.2019