The ceiling for insurance contributions is eliminated from February 1, 2017 both for salaries and income exclusively from investments – dividends, interest. Therefore, these persons will owe contributions for the entire amount.
On the other hand, many small and medium companies will be framed as microenterprises and will pay tax on turnover. The taxation of real estate transactions will decrease or even disappear in some cases. The changes were approved by OUG 3/2017 and come into force on February 1.
Profit Tax
Companies with activities exclusively of innovation, research – development will be exempted from profit tax for the first 10 years of operation.
Newly registered companies in this field will benefit from the facility for a period of 10 years from the date of registration. The date from which there are calculated 10 years:
Fiscal regime for microenterprises
The limit for income (registered at the end of the previous year) is increased from EUR 100,000 to EUR 500,000.
The taxrate is 1% for microenterprises with one or more employees and 3% for those with no employees.
The increase of the limit from which the companies may apply the fiscal regime for microenterprises seems to be a good measure for most of the companies , but those that have a rate of profitability lower than 6.25% per year should analyze the possibility of paying profit tax.
Although the fiscal regime for microenterprises is compulsory for the companies with turnover under EUR 500,000, they still might opt for paying profit tax in certain conditions.
Income tax
Salaries from seasonal activities (CAEN: 5510, 5520, 5530, 5590 , 5610, 5621, 5629, 5630) are exempted from income tax in case the individual labor contract is for at least 12 months.
Non taxable ceiling of RON 450,000 for income from transfer of real estate properties is introduced. The difference is taxed with 3%.
The equivalent of medical subscription supported by employees is deductible up to EUR 400 pe year.
Social contributions
The ceiling equivalent to 5 medium gross salaries, corresponding to monthly basis for calculating social security contributions, for salaries and income assimilated to salaries is eliminated. Therefore, individuals that earn salaries higher than 5 medium gross salary per month established by social security budget law ( 2.681 lei in 2016, not yet established for 2017) will pay CAS and CASS for the entire earned amount .
It is eliminated the maximum monthly base for calculating CASS, representing the equivalent of 5 medium gross salary, for income from investments and other sources. Thus, the individuals that earn exclusively from dividends, interest or other sources (listed in the Fiscal Code) will pay CASS for the entire earned amount.
It is reintroduced the exemption from CASS for income from investments and / or other sources if, during the fiscal year, the individuals obtain also income from salaries, pensions, independent activities, rental, association with a legal entity or agricultural activities.
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