Romania now limits the individual income tax rate of 85% with respect to only particular severance payment. Previously it was imposed on employees who were in management position or to the members of a board of directors under an Ordinance published in early 2013.
Under the new publication in October 2013, 85% individual income tax rate applies only for severance payments made with respect to the Board of the Financial Supervision Authority (ASF) or with respect to a restructuring as a result of the establishment of the ASF.
