2017 to start with VAT cut to 19 pc, fuel over-excise eliminated and lower costs for electricity

January 1, 2017 will bring some tax breaks such as decreasing VAT rate from 20 percent to 19 percent, the elimination of the pole tax (tax on special constructions) and of the over-excise on fuel of 7 euro cents / liter.

These measures are provided to entry into force as of January 1, 2017 although are included the Tax Code applicable from January 1, 2016.

The New Year comes also with several changes on social and health insurance contributions (CASS). Thus, the basis for their calculation, with the applicable rate of 5.5 percent, will be capped at five times the average gross salary per economy. Moreover, as of 2017 it’s eliminated the exception according to which individuals earning income from copyrights, investments and other sources, do not owe health contribution for these revenues if they have also salary income, pension or from freelance activities.

In 2017, the companies will benefit from the extension period of tax exemption on reinvested profit.

As of 2017 also, farmers can choose a special VAT scheme. Thus, the percentage of flat-rate compensation for 2017 is 1 percent, 4 percent for 2018 and 8 percent from 2019.

Household consumers will pay less for electricity by 1.9 percent on average, from 1 January 2017, according to the National Authority for Energy Regulation (ANRE).

The authority approved on December 20, a decrease of 5.81 percent of the contribution for high efficiency cogeneration from January 1, 2017 to RON 13.01 / MWh.

ANRE also reduced by 1.6 percent on average the competitive market component (CPC) rates, which will be applied by suppliers of last resort from January 1.



2017electricityflat-rate compensationfuel over-excisehousehold consumersJanuary 1lower costsNational Authority for Energy Regulation (ANRE)new yearpole taxsocial and health insurance contributions (CASS)Tax Codetax exemption on reinvested profitVAT
Comments (0)
Add Comment