Social contributions tax reduction in Romania delayed by a year

The decrease in social contributions from 10.5% to 7.5% for employees and from 15.8% to 13.5% for employers will apply starting January 1, 2018, according to the Fiscal Code draft law the Government approved on March 25. An earlier bill version gave January 2017 as the deadline for the cut. The current bill keeps other provisions, among which a maximum ceiling of 5 average gross salaries as a calculation basis for the health social security tax, starting January 1, 2016, reports local Mediafax. It also removes the deduction of the health social security tax to calculate the income tax starting January 1, 2016. It introduces the obligation to pay the health social security tax and the social security tax for all individuals who earn an income. editor@romania-insider.com