Romanians to pay fewer taxes starting January 1

cluj_centerRomanians will pay fewer taxes this year after a series of measures for loosening the tax policy became effective starting January 1. These include the VAT reduction, removal of the tax on special constructions, and removal of the extra excise duty on fuel, according to Romania-Insider.com.

The general VAT rate was reduced from 20% to 19%, one year after the VAT had seen a more significant cut from 24% to 20%. The lower VAT rate applies to non-food goods and services, as the VAT rate on food was lowered from 24% to 9% in June 2015.

The tax on special constructions was removed. This tax had been introduced in early 2014 and applied to assets that weren’t covered by any tax, such as pillars, pipes, ramps, concrete platforms, other than production or office buildings that were already taxed. Companies in energy were among the top payers of this tax.

The removal of the extra excise duty on fuel, which amounted to EUR 0.07 per 1 liter of fuel, combined with the VAT cut will lead to lower fuel prices. The lower prices are already visible at local gas stations.

These three measures were all included in the law that changed the Fiscal Code, which was voted by the Parliament in 2015. Most of the changes to the Tax Code came into force on January 1, 2016.

The tax exemption on reinvested profits extends indefinitely. The shareholders who reinvest profits in technological equipment, computers, software, control and billing equipment will be exempt from paying this tax.

Farmers will benefit this year from a special VAT scheme if they are individuals or small businesses that provide agricultural services and encounter difficulties in applying the normal VAT arrangements. They will be gradually given a compensation in the flat-rate, namely a compensation of 1% in 2017, 4% in 2018 and 8% in 2019.

 

Read more HERE

Comments

comments

Leave a Reply

Your email address will not be published. Required fields are marked *

1 × four =