The Romanian Government approved on Wednesday, March 25, the Fiscal Code and the Fiscal Procedure Code draft laws. It will send them to the Parliament for debate.

According to the Fiscal Code draft law, the standard VAT rate will drop from 24% to 20%, starting January 1, 2016, and will further go down to 18% starting 2018.

The reduced VAT of 9% will apply to meat, milk, eggs, fish, vegetables, and fruits, but also to access to sporting events. The excise duties on fuel will go down by 18-20%, reports local Capital.ro.

The Government has removed the dividend tax and the pole tax. Microenterprises will pay a tax of 1 to 3%, based on the number of employees.

The corporate tax rate will go down from 16% to 14% starting January 1, 2019, whereas the income tax will decrease from 16% to 14% starting January 1, 2019.

The tax on the income earned in Romania by non-residents will also go down from 16% to 14% beginning January 1, 2019. The excise duty on major energy products will also go down.

editor@romania-insider.com