Salary is defined as cash and/or in-kind income collected by residents or non-residents on the basis of an individual employment contract, employment relationship, dismissal agreement or special law, which is imposed on a flat rate of 10%. Gross annual rental income, with the exception of land leases, represents the income received by the owner in a given year, as stipulated in the lease agreement between the parties. Some expenses are not deductible: fines, late penalties (other than contractual penalties with the authorities), donations, private scholarships, sponsorship and protocol fees above statutory limits, 50% of office car costs that are not used exclusively for commercial purposes (with some exceptions), as well as other expenses under current legislation, as well as personal user fees for family members. The list is not exhaustive. Compulsory social security contributions for workers are deductible for wage tax purposes in Romania. Revenues from gambling activities used specifically for casinos, poker clubs, slot machines and lottery tickets up to RON 66,750 (including) for each gross income collected by an individual represent tax-free income. Income from the transfer of real estate is taxed at a 3% income tax rate applicable to taxable income, which is determined by deduction of the tax-free amount of RON 450,000 of the transaction value, regardless of the period for which the property was held. Income from non-residents from activities in Romania or income from Romania is generally subject to a tax of 16%, with some exceptions (unless the tax rate is reduced or abolished under an applicable DTT concluded by Romania with the country of residence). Homeowners who earn income from renting up to five rooms for tourism purposes are liable for an income tax based on an annual income rate. Under certain specific thresholds provided for by Romanian law, income from agricultural activities is tax-exempt.