The most important changes concerning the Fiscal Code, approved by the Government on the 8th of November 2017, are:

  • With regard to Corporate Tax:
    • SMEs obtaining revenues from 500.000 up to 1.000.000 Euros, currently paying 16% tax revenue, will pay only 1%, regardless if these revenues represent or not more than 20% of their total revenues.
  • With regard to mandatory social contributions, their joint quota will be diminished with 2%, from 39, 25% to 37, 25%, as well the number of social contributions, concerning both the employer and the employee, from 9 to 3. Also, the fiscal burden of mandatory social contributions will be transferred from the employer to the employee, in the case of revenues from wages and other similar sources, so that the SIC and HIC will be paid by the employees.
    Moreover, an additional SIC quota (of either 4 or 8%) is established, for particular, special or other working conditions prescribed by the law. The health insurance contribution, of 10%, will be paid by workers or other employees for whom there is a payment obligation, according to the Fiscal Code.
  • With regard to Tax Revenue: the ordinance decrees a reduction from 16 to 10% of the quota, for several categories. For instance, the taxation quota is diminished for revenues deriving from wages and other similar sources, from independent activities, from the letting of goods, from investments (except for dividend revenues, for which the 5% quota is maintained), from pensions, agricultural, forestry and fish farming activities, awards and similar other sources.

Issuer: the Government of Romania
Date: the 1st of January 2018