New Fiscal Code norms to be approved and enforced today – see main changes

The Romanian Government will meet today in the afternoon to adopt the methodological norms for the Fiscal Code, which will be enforced immediately after. The norms introduce several changes in the taxation area, which are meant to increase the budget revenues. Those who earn revenues based on copyright contracts will have to pay contributions to the pensions, budget, health insurance and unemployment for the amounts they receive. Those who are also employed at the same time will be exempt from paying these contributions for the copyright contract too if they don't receive monthly payments based on the copyright contract. If they earn money regularly based on the copyright contract, they will have to pay the contributions even if they're already employed. The contributions however are limited to a taxation based of maximum five gross average salaries a month. The gross average salary in Romania is of RON 1,836. The revenues from copyright contracts are also affected by the decrease of the deductibility rate, which will be of only 20 percent- instead of 40 percent in the past. The remaining 80 percent will be taxed by 16 percent. Individuals themselves will have to pay these contributions, and not companies on their behalf. The methodology also covers the 16 percent tax on meal vouchers, bank interest and revenues from the monetary or foreign exchange deals.