The new Fiscal Code could bring changes for the indexation of wages and the indexation on the income produced by micro-enterprises. Also, the personal deduction from the net monthly income will be increased for employees who earn salaries above a certain amount. The new Code must be approved by the Romanian government and then be sent to the Parliament for debate.
Changes for individuals
The personal deduction from the net monthly income for the basic calculation of the 16% tax will be increased by 50 lei for employees who have a maximum of 1000 lei gross income and who provide for the care of one, two or three other individuals. Moreover, employees who provide for the care of more than four persons will benefit from an new deduction, increased by 150 lei. Individuals who do not have any other persons in their care will remain with the current deduction of 250 lei.
Taxpayers who have a gross monthly income of over 3,000 lei do not benefit from a personal deduction. An individual for which the taxpayer provides care is the husband/wife, children or other family members and their relatives up to the second degree, whose income, taxable and non-taxable, do not exceed 250 lei per month.
Changes for micro-enterprises
The new Fiscal Code provides different taxation rates for the income produced by micro-enterprises, according to the number of employees. Thus, the tax rate will be 1% for micro-enterprises that have more than two employees and 3% for those that have only one employee. Micro-enterprises that do not have employees will pay a tax of 3% to which the amount of 1.530 lei will be added quarterly.
According to the Fiscal Code, a micro-enterprise is a legal person that fulfills several conditions:
- derives income from activities other than banking activities, in the field of insurance and reinsurance, capital markets or gambling;
- derives income, other than those produced in consultancy and management activities, of more than 80% of its total income;
- derives income that to not exceed the equivalent in lei of 65.000 euros;
- the share capital is owned by individuals, other than the state and local authorities;
- if not going through a liquidation or dissolution procedure.