Romania’s Govt. sketches sundry amendments to taxation system

A comprehensive version of the fiscal amendments that the Romanian Government is expected to endorse on June 29, to be enforced by January 2023 (except for the higher excise taxes enforceable on July 1), surfaced in the media. The sundry collection of amendments already prompts comments, not always positive, from the investors claiming they were not consulted beforehand.

Besides the 8% tax on dividends (from 5% currently), the higher tobacco and alcohol excise duties and the more restrictive preferential tax on revenues tax for microenterprises (allowed for up to EUR 0.5 mln annual revenues compared to EUR 1 mln currently), the list includes a long series of amendments expected to boost the budget revenues, Profit.ro reported.

As regards the personal incomes, the Government attempts to support the low-income earners with a more favourable personal deduction system - while also restricting to 33% of the gross wage the volume of bonuses (including the meal and holiday vouchers) a company can extend to its employees.

The threshold for the preferential 5% VAT rate for homes will be lowered to RON 450,000 (EUR 90,000) from RON 700,000. The VAT rate in the HoReCa will increase to 9% from 5% currently.

The incomes from gambling will be levied a 40% income tax, compared to progressive rates of 1%, 16% and 25%.

The personal incomes, other than wages, will be levied social security contributions starting with those earning more than the equivalent of 6 monthly gross minimum wages per year (compared to 12 average wages currently) - but the contributions will be capped to the levels calculated for 24 monthly minimum wages per year.

The freelancers will be allowed to pay revenues tax only if their annual revenues are below EUR 25,000 per year (compared to EUR 100,000 currently). The measure is apparently aimed at preventing the payment of hidden (and high) wages to employees registered as freelancers.

iulian@romania-insider.com

(Photo source: Shutterstock)

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Romania’s Govt. sketches sundry amendments to taxation system

A comprehensive version of the fiscal amendments that the Romanian Government is expected to endorse on June 29, to be enforced by January 2023 (except for the higher excise taxes enforceable on July 1), surfaced in the media. The sundry collection of amendments already prompts comments, not always positive, from the investors claiming they were not consulted beforehand.

Besides the 8% tax on dividends (from 5% currently), the higher tobacco and alcohol excise duties and the more restrictive preferential tax on revenues tax for microenterprises (allowed for up to EUR 0.5 mln annual revenues compared to EUR 1 mln currently), the list includes a long series of amendments expected to boost the budget revenues, Profit.ro reported.

As regards the personal incomes, the Government attempts to support the low-income earners with a more favourable personal deduction system - while also restricting to 33% of the gross wage the volume of bonuses (including the meal and holiday vouchers) a company can extend to its employees.

The threshold for the preferential 5% VAT rate for homes will be lowered to RON 450,000 (EUR 90,000) from RON 700,000. The VAT rate in the HoReCa will increase to 9% from 5% currently.

The incomes from gambling will be levied a 40% income tax, compared to progressive rates of 1%, 16% and 25%.

The personal incomes, other than wages, will be levied social security contributions starting with those earning more than the equivalent of 6 monthly gross minimum wages per year (compared to 12 average wages currently) - but the contributions will be capped to the levels calculated for 24 monthly minimum wages per year.

The freelancers will be allowed to pay revenues tax only if their annual revenues are below EUR 25,000 per year (compared to EUR 100,000 currently). The measure is apparently aimed at preventing the payment of hidden (and high) wages to employees registered as freelancers.

iulian@romania-insider.com

(Photo source: Shutterstock)

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