Romanian deputies remove income tax, health contributions for pensions

Romania’s Chamber of Deputies adopted yesterday the draft project that amends the Fiscal Code to remove the health contributions for pensions, as well as the income tax of 16% for the pensions below RON 2,000 (EUR 443). Only the MPs of the Union to Save Romania (USR) party voted against the draft project. Until now, only the pensions below RON 1,050 were exempted from paying the income tax of 16%. Currently, over 3.1 million retirees in Romania have pensions below RON 1,050. This means that the new measure will have no impact on these 3.1 million people. The new bill extends this measure to the pensions ranging between RON 1,050 and RON 2,000. A number of 1.43 million Romanians will thus be exempted from paying the income tax of 16%. editor@romania-insider.com