The governing coalition has finalized the list of amendment measures to the Fiscal Code, which are expected to be approved next week in a government meeting, writes news.ro:
- The tax deductions target incomes up to 4,500 lei, with a budgetary impact of 3 billion lei/year in 2023. Thus, young people up to 26 years old will benefit from deductions of 15% from income tax with a maximum value of 383 lei.
- Deductions will also be applied for families with children, of 100 lei/child if the children are in a form of education. If a family has more than 4 children, the income tax is zero.
- Part-time contracts will pay contributions as the minimum wage in the economy, if there is only one contract.
- Exceptions will be made for pupils/students up to 26 years of age, the person following a form of apprenticeship, the pensioner who benefits from a pension from the public system, individuals who earn income from salaries having multiple part-time or full-time employment contracts and the cumulative value of salaries exceeds the minimum wage in the economy, and people with disabilities.
- Regarding excise taxes, on alcohol they will be 20% - 6 bani/liter, starting January 1, 2023. On cigarettes, the excise tax increases by 31 lei (60 bani/pack), starting August 1 this year.
- Regarding VAT, the following changes were decided: for restaurants, catering, hotels, VAT increases from 5 to 9%, for housing, a VAT of 5% will be applied only for a home up to the ceiling of 600,000 lei but also up to 80 useful sq m.
- The VAT on sugary drinks increases from 9 to 19%, and this also includes non-alcoholic beer.
- Regarding the tax on real estate transactions for individuals, the deduction of 90,000 euros/real estate sold is excluded and a tax of 1% is applied for a home older than 3 years and a tax of 3% for real estate up to 3 years old, except for inheritances.
- It was decided to eliminate the flat rate for rental income tax.
- Thus, the property tax will be on the notarial scale and there will be no longer a difference between natural persons vs. legal persons. A classification will be made by residential and non-residential, and on residential, the tax will be 0.1-0.2%, while on non-residential it will be 1 - 1.3%.
- For micro-enterprises, it was decided to reduce the ceiling to 500,000 euros, limit control to a maximum of 3 micro-enterprises, limit the scope of activity to at least one employee. Dividends increase from 5 to 8% and eliminate exemptions for state-owned companies and private pensions.
- Regarding PFAs, the ceiling was lowered from 100,000 euros to 25,000 euros/year.
- The coalition has also decided to tax gambling, with 40% on any winnings, but an analysis will be made regarding the taxation method at EU level to have a model in this regard. The Liberals support the idea that gambling companies should also be taxed.
- In agriculture and construction, the ceiling for tax incentives was lowered from 30,000 lei to 10,000 lei
- In addition, it was decided to limit favorably taxed salary benefits to 33% of annual income.
- For extra-wage income, below 6 gross minimum salaries, no contributions are applied, between 6 and 12 gross minimum salaries - contributions will be for 6 minimum salaries, between 12 and 24 gross minimum salaries, contributions will be applied as for 12 minimum salaries and above 24 gross minimum salaries, contributions as for 24 minimum salaries.
In contrast, coalition leaders did not reach an agreement on introducing progressive taxation.
