Monday, March 3, 2014

No changes in Romanian Taxation for 2014

Our Law Firm can only salute the Romanian Government's confirmation that the flat 16% corporate and individual tax will not change in 2014. This at least means some fiscal stability (at least in this area) and less unwanted surprises for foreign investors in Romania.

The Romanian Government claims not to introduce this year the so-called "solidarity" tax on high incomes and no differential tax rates for individuals (natural persons), says PM Victor Ponta.
Ït is important to note that this year we do not want to change any tax system and not make any increase in the 16% tax (flat tax for both companies and individuals) . Unfortunately, we cannot, at least in 2014 , perform the changes related to rates of 8% and 12 % for those with low income, for the budget is already done. We will do certainly do this in 2015".

In Fiscal Strategy 2014-2016 , approved last year by the government and parliament , says , in the chapter on " Trends of major taxes on the horizon 2014-2017 " , it is intended to " introduce differentiated tax on wage income tax deductibility odds 8%, 12 % and 16 % which will be determined on a certain grid and Social Insurance significant reduction of 5 percentage points since July 2014."

For further information on Romanian taxation please see our article: Paying Taxes in Romania:

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