Romania to reduce tax on dividends starting January 1 next year

The ruling coalition has decided to apply several measures of the new Tax Code starting January 1, 2016, although they were initially planned to be implemented later, said Prime Minister Victor Ponta. The Government will thus reduce earlier the tax on dividends from 16% to 5%, and will cap the health insurance contributions to five average salaries, reports local Agerpres. The proposal was made by the local party Alliance of Liberals and Democrats for Europe Romania (ALDE) and the Prime Minister said that he considered it sustainable. According to the new fiscal code, which the Parliament approved in September, the dividend tax cut was supposed to be implemented starting January 2017. The Government then announced it planned to do this sooner. editor@romania-insider.com