Tax Cuts Take Effect in Romania from Start of 2016

World » SOUTHEAST EUROPE | January 3, 2016, Sunday // 14:22
Bulgaria: Tax Cuts Take Effect in Romania from Start of 2016 Photo source: About.com

The New Year has brought several tax cuts in Romania benefiting consumers, small firms as well as those who receive dividends, according to local media reports.

A cut in standard Value Added Tax (VAT) rate to 20% from 24% as of 1 January 2016 will cost the state budget about RON 8 B (EUR 1.7 B) in revenue, according to romania-insider.com.

Additionally, VAT on foods in Romania was cut to 9% from 24% in June last year.

A drop of RON 1 B (EUR 221 M) in budget revenue is expected to result from the lowering of tax on dividends to 5% from 16%.

In a bid to boost employment, the Romanian government has also cut income tax for micro businesses. Small firms with at least two employees will pay income tax of 1%, those with one employee - 2%, while those who hire no employees will pay 3%.

Starting from 2016, the ceiling for the income made during the fiscal year, at which an individual is able to register as a micro enterprise in Romania, has increased from the equivalent of EUR 100,000 from EUR 65,000. If the income exceeds EUR 100,000, the company will have to pay profit tax of 16%.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Southeast Europe » Be a reporter: Write and send your article
Tags:   Romania, tax, VAT, income, dividend

Advertisement
Advertisement
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria