Changes applicable from January 2017:
- The social security contribution and health fund contribution are capped at 5 average gross salaries (indicated annually in the State Budget Law). The measure is applicable for individuals for the revenues obtained from independent activities or intellectual property; (the gross average salary in the country is RON 2.681, the ceiling is RON 13.405)
- The health insurance contribution is capped at 5 average gross salaries. The measure is applicable for individuals for the revenues obtained from property rental, agriculture, forestry and fishing;
- The taxpayers who perform exclusively innovation, research and development and related activities are tax exempt for corporate income tax for 10 years. The newly incorporated companies are tax exempt for 10 years from inception and the other are tax exempt form 06.01.2017 onwards.
Changes applicable from February 2017:
- The increase of minimum gross salary to RON 1.450. This salary is calculated for an average monthly work program of 166 hours, representing an average hourly remuneration of 8,735 RON/hour.
- The new ceiling for micro-companies is EUR 500.000 (RON 2.270.550 at the exchange rate of 4.5411 RON/EUR) for taxable income for the year 2016. The tax will be of 1% on taxable income should the company have at least one employee otherwise it will be 3%;
- In the case of individuals that have salary income higher than 5 average gross salaries, the social security contribution (both individual’ and the company’ contribution) and the health fund contribution are calculated based on the full income, no ceiling applies;
- Individuals obtaining income from investments and other sources do not owe health fund contribution if they obtain income from any of the following: wages, self-employment, pensions, joint ventures, agricultural activities, unemployment, indemnity for work incapacity;
- The employees hired for a period of 12 month by employers with seasonal activities in classifications CAEN: 5510 – Hotels and other accommodation facilities; 5520 – Accommodation facilities for holidays and short term accommodation, 5530 - Caravan parks, campgrounds and camps, 5590 – Other accommodation services, 5610 – Restaurants, 5621 – Catering for events, 5629 – Other food services, 5630 - Bars and other activities serving drinks will be exempt from income tax.
- Subscriptions for health services borne by employees are deductible amounts for income tax in an amount of 400 EUR annually;
- Sales of assets from personal property (buildings, land) are tax exempt for the amount of RON 450,000. The amount that exceeds this ceiling will be taxed at 3% for transactions performed starting with February 1, 2017.
Note: The amendments brought by EO 3/2017 to the Fiscal code and published in the Official Gazette on 01.06.2017 will be followed by the Implementing Rules.