The Ministry of Finance published the draft law on the new fiscal-budgetary measures, for which the Government would assume responsibility in the Parliament. It provides for a tax of 1% on the turnover of SMEs up to revenues of up to 60,000 euros per year and 3% if revenues exceed this amount.
The government waived the 16% tax on profits if the rate of return exceeds 30%. Companies with a turnover of over 50 million euros will pay a minimum tax of 1% on turnover. And banks will pay a 1% tax on turnover.
The tax exemption in IT, construction, agriculture and the food industry is maintained only for incomes below 10,000 lei.
Also, the draft bill provides for the reduction of the total number of management positions, conditions the granting of vacation vouchers at the salary level and the limitation of the level of increments.
The excise duty on alcohol and tobacco is increased and the special tax on real and movable assets of high value is established.
For IT professionals, it is proposed to limit the application of the tax facility until December 31, 2028 inclusive, similar to the term provided for the tax facilities granted to the construction, agricultural and food industry sectors, as well as the introduction of a ceiling up to which the exemption from paying income tax is granted, respectively up to the level of 10,000 lei included. For the part of the gross monthly income that exceeds 10,000 lei, tax facilities are not applied.
Employees from the construction and food industry will pay the health insurance CASS, the measure that takes into account the commitments assumed by the Government within the PNRR aimed at the phased reduction of distortions and excessive fiscal incentives, mainly for income tax and social contributions, without affecting economic growth and the development of economic sectors impacted by fiscal policy decisions.
VAT will increase for some goods and services:
– from 5% to 9% for the delivery of social housing, the delivery of high quality food, the delivery and installation of photovoltaic panels, solar thermal panels, heat pumps and other heating systems high efficiency).
– from 5% to 9% for the delivery of homes that have a maximum useful area of 120 sqm, excluding outbuildings, the value of which, including the land on which they are built, does not exceed 600,000 lei, excluding value added tax , purchased by individuals. In order to move from the application of the 5% to 9% rate for the delivery of housing, it is also necessary to introduce some transitional provisions.
– the transition from 9% VAT to the application of the standard VAT rate for the delivery of alcohol-free beer and foods with added sugar, whose total sugar content is at least 10g/100g product.
Products that remain with 5% VAT: the delivery of school textbooks, books, newspapers and magazines, access to castles, museums, memorial houses, historical monuments, architectural and archaeological monuments, zoological and botanical gardens, fairs, exhibitions, cinemas and cultural events, delivery of firewood and thermal energy.
Tax on expensive buildings and cars
The government compels individuals who own buildings more expensive than 500,000 euros and cars more expensive than 75,000 euros to pay a special tax.
The following persons, hereinafter referred to as taxpayers, are obliged to pay the special tax on immovable and movable property of high value, established according to this title:
a) natural persons who own/jointly own residential buildings located in Romania if the taxable value of the building, calculated according to art. 457, exceeds 2,500,000 lei;
b) individuals and legal entities that own cars registered/registered in Romania whose individual purchase value exceeds 375,000 lei.
The tax is due for a period of 5 years starting from the fiscal year in which the handover-acceptance of the car takes place or for the fraction of years remaining until the completion of the 5-year period from this date for those in which the handover-acceptance of the car took place previously.
SMEs
Micro-enterprises will be taxed as follows:
– 1% for micro-enterprises with revenues not exceeding 60,000 euros
– 3% for micro-enterprises that: 1. achieve revenues over 60,000 euros; or 2. carries out activities, main or secondary, corresponding to certain activities such as video game editing, client oriented software services, hotels and accommodation facilities, trailers, camping and camps, restaurants, catering services for events, bars, cafes, judiciary activities, general medical assistance, specialized medical assistance, dentistry assistance, etc.
The above mentioned tax rates, applicable to the income of micro-enterprises are regulated starting from January 1, 2024.
The holiday vouchers will be increased to the value of 1,600 lei, but a 10% health insurance contribution (CASS) will be paid and will only be granted to people with net incomes below 8,000 lei.