Fiscal changes in February 2017

New Government in Romania

Business news

​At the beginning of the year, a new Government was installed. It is composed by members of left wing party PSD (social democrat) and ALDE (liberal democrat).

Prime Minister is Mr Sorin Grindeanu, former minister of Communications and President of Timis local council.

Tax news

Major tax changes

At the end of the last week the new Government adopted an Emergency Ordinance including numerous tax changes. The most important ones are the following:

Yearly turnover to become microenterprise

Starting 01.02.2017, the yearly turnover for a company to become microenterprise will increase from the actual 100,000 EUR to 500,000 EUR.

The microenterprises having no employees will be taxed by 3% at the turnover.

The microenterprises having one or more employees will be taxed by 1% at the turnover.

For the period 01.01.2017 – 01.02.2017 the current profit tax payer companies which will become microenterprise under the new rule will calculate profit tax.

Deadline for paying the profit tax and depositing the tax statement is 25.02.2017.

Increase of minimum gross salary

Starting 01.02.2017, the minimum gross salary will increase to 1,450 RON (cca 320 EUR) from the actual 1,250 RON.

Increase of the pension contribution for big salaries

Starting 01.02.2017, the limitation of the calculation basis of the pension contribution (CAS) for big salaries (in present 5 average gross salaries) will be eliminated.

This will lead to a decrease of the net salaries in case of the employees having gross salary exceeding 13,405 RON (cca 3,000 EUR).

Tax on transfer of property right on real estate assets

In case of transfer of property right on real estate assets by sale, the tax to be paid is 3% calculated at the taxable value of the transaction, e.g. at the the difference between the selling price and 450,000 RON (cca 100,000 EUR).

Companies having as sole object of activity Research and Development will be profit tax exempted for 10 years.

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