Highlights on the Calculation Method of the Salaries’ Income Tax Accounting
Highlights on the Calculation Method of the Salaries’ Income Tax Accounting

Summary/Abstract: This paper goal is to call attention to the method of calculating the salaries’ income tax and its share in total budget revenues. Salary income is considered all income in money obtained by a person who carries out an activity based on an individual employment contract, and the tax is calculated and withheld by cumulating with the income from salaries for that month, and its payment to the state budget is performed monthly. The salary tax, which represents 78.4% of the revenues related to this budget aggregate, had a very slow dynamics, recording an increase of only 1.3% in 2020 compared to 2019, which represents a failure of 0.6 billion lei. Consequently, there is a revenue deficit of about 2 billion lei, which raises questions about the efficiency of collecting this income category. The evolution of income tax revenues reflects a decrease of 8% as a share of GDP in January 2021.

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