FinMin announces 2% solidarity tax for employers in Romania

All employers in Romania will pay a new tax starting next year, namely a 2% “solidarity tax” that will be calculated based on a company’s overall wage costs, finance minister Ionut Misa announced yesterday evening in a TV show at local Antena 3. He explained that the new tax has been determined by an European directive that is mandatory for all member states. The finance minister also said that the Government has enough money to cover the pension and salary payments and to implement the tax cuts promised in the Social Democratic Party’s governing program starting January 1, 2018. Thus, the income tax will drop from 16% to 10%. The overall social contributions will also drop from 39.25% of the gross wage to 35% and all the contributions will be transferred to the employees. This measure has raised concerns among employees in Romania who fear that their net salaries will drop. The Government promised it would come up with a way to force employers increase the gross wages of their employees so that the net salaries stay the same. editor@romania-insider.com