The local tourism industry is discussing with the Ministry of Finance the reintroduction of a regulation for tipping in hotels and restaurants, using a system where only a 10% income tax would be applied.
Three years ago, a series of rules regarding the taxation of tips were introduced, where it was marked on a separate fiscal receipt, but the provisions were canceled after only a few months due to implementation difficulties.
Calin Ile, president of the Federation of the Romanian Hotel Industry (FIHR), stated that there are both foreign tourists who want to leave a tip via bank card and companies that want to do so for protocol meals, but they face a blockage caused by the lack of regulation.
In the tourism industry’s opinion, regulation will increase the number of people who tip, with a gain for all parties involved: employer (better-motivated employees), client (better services), state (bringing money from the “black economy” into the light).
Source: Profit
Frequently Asked Questions
What is the proposed tax rate for tips in Romania?
The tourism industry is proposing a simplified system where tips are subject only to a 10% income tax.
Why was the previous tipping regulation canceled?
The previous rules, introduced three years ago, were canceled after a few months due to technical difficulties in implementation, such as the requirement for separate fiscal receipts.
What are the main benefits of regulating tips?
Regulation would allow for card payments of tips, improve employee motivation, enhance service quality, and increase state tax revenue by reducing the underground economy.