Romanian Govt. gives up idea to remove dividend tax

The draft project amending Romania’s Fiscal Code, which was discussed in the Government’s yesterday meeting, doesn’t include anymore the provision on removing the tax on dividends, nor the provision granting tax facilities to owners who cultivate their agricultural land. The former version of the draft project amending the Fiscal Code provided the removal of the dividend tax from January 1, next year. The Social Democratic Party announced this measure last year and included it in their governing program. The dividend tax was reduced from 16% to 5% in 2016, a level that has stayed in 2017. The previous version of the amendment to the Fiscal Code also provided that municipalities could increase the tax on land if owners don’t work the land for two years in a row. editor@romania-insider.com