Romania's Government could cut VAT on water, reduce tax on dividends

The Government could change the Fiscal Code in a meeting next week, by cutting the VAT on water to 9%, reducing the taxes on dividends and changing the way small companies are taxed. The changes in the Fiscal Code could also include the exemption from profit tax for secondary education, said Finance Minister Eugen Teodorovici, reports local Agerpres. Until now only universities have been exempted from paying the profit tax. Small companies would have to pay an income tax of 3% if they don’t have employees, 2% if they have one employee and 1% if they have over two employees. The tax on dividends would drop from 16% to 5% and would apply for the 2015 dividends, which the investors would get in 2016. editor@romania-insider.com