The taxable income from employment relations comprises of the labour remuneration and all other payments in cash and/or in kind by an employer or at the expense of an employer, with the exception of income designated in the legislation as non-taxable.
The advance tax on income from employment relations is assessed monthly by the employer on the basis of the monthly tax base. The monthly tax base is assessed by deducting from the taxable income calculated for the respective month, the mandatory social security contributions, deducted by the employer, which are at the expense of the natural person, according to the procedure established by the Social Security Code and the Health Insurance Act. The following is deducted from the monthly tax base:
1. The tax relief for persons with reduced working capacity
2. The tax relief for personal voluntary social security and insurance contributions, when the amounts have been deducted by the employer upon payment of the income from an employment relation
The amount of the advance tax due is assessed by deducting the tax reliefs from the monthly tax base, and multiplying the result by the 10 % tax rate. The assessed tax is deducted by the employer upon final payment of the taxable income, calculated for the corresponding month.