Debate on changing the Fiscal Code

Representatives of the Ministry of Public Finance began this week discussions with business representatives and those among tax consultants on the introduction of a tax on household, but also to eliminate the flat tax and introduce progressive taxation. Discussions are for now in their early stages, being put on the table several ongoing scenarios.

Both measures are stipulated in the government program. For their application it is necessary changing the Fiscal Code. By law, amendments brought to the Fiscal Code are to be made no later than six months earlier than the term of applying.

From this point of view, the Ministry of Public Finance began discussions on two regulations that have to be applied starting 1 January 2018 (according to the government program). They must be adopted no later than July 2017. How to modify the Fiscal Code – through GEO (Government Emergency Ordinance).

New fiscal regulations starting 1 January 2018 (work scenarios)

  1. Introducing progressive taxation on income

  • 0% - for incomes lower than RON 2,000 (€444). At the moment, R&D workers pay 0% income tax, according to GEO no. 3/2017. Zero income taxing no matter the level of incomes will be paid by medical doctors and IT workers starting 1 January 2018.

  • 10% - for incomes higher than RON 2,000 (€444)...

#fiscalcode #tax #MinistryofPublicFinance #business #GEO

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