The Ordinance amends the Tax Code and also Law no. 70/2015. The most important amendments to the Tax Code are the following:
- Tax exemptions for income from wages for some categories of individuals.
Starting with August 2016 individuals who earn incomes from salaries or similar R & D activities are exempt from income tax on wages.
At the same time, individuals working as statistic operators and generating revenues obtained from the collection of data from population and from legal entities (included in statistical surveys conducted for the production of official statistics) are taxed by incomes from other sources, when these revenues are not generated under contracts of employment or under of service concluded under Law no. 188/1999 regarding the statute of civil servants.
- Exemption from property transfer tax for giving in payment (datio in solutum).
Individuals applying for the giving in payment procedure established by Law no. 77/2016 are exempted from taxation for the transfer of ownership. The exemption is granted only once, with the first giving in payment procedure applied by the individual. This exemption shall apply starting with the date of publication of the ordinance.
A notary registry is set up to record datio in solutum procedures for exemption from tax for giving in payment procedures. Tax exemption procedures can be carried out after obtaining a certificate from this register.
- Reducing the VAT rate to certain goods and services used in agriculture.
As of August 1st, 2016 reduced VAT rate of 9% applies for the delivery of pesticides, seeds and other agricultural materials for sowing. The same reduced rate will apply for services in agriculture (plowing, sowing, disking, etc.). The number of goods and services in agriculture that will apply rate of 9% will be approved by Order of the Minister of Finance and Minister of Agriculture.
- Law 70/2015 to strengthen financial discipline on the cash receipts and cash payments and amending and supplementing Government Emergency Ordinance no. 193/2002 concerning the introduction of modern payment systems.
For daily cash receipts from individuals for services related to weddings and christenings events, legal persons (organizing these events) may require the competent central tax authority approval of higher ceiling cash receipts, under the condition of presenting the tax authority information from which is shown that cash receipts from individuals generated by organizing such events exceed the provided the ceiling of 10,000 lei.