The leaders of the ruling coalition decided, in Monday’s meeting, to tax multinationals that, although they have turnovers of hundreds of millions of euros, do not declare profits and avoid paying the 16% tax, political sources told Digi24.
If the measures discussed in the Coalition will be enforced, companies with a turnover greater than 50 million euros will still pay 16% profit tax, but not less than 1% of the turnover.
The ruling coalition leaders convened on Monday, to decide on the fiscal measures with which the Minister of Finance and the Prime Minister will go to Brussels to discuss them with the European Commission. Later, they will be adopted by the Government, with part of them to come into force as of October and the rest from January.
The Government’s intention is to convince the European Commission that it will reduce the deficit compared to the previous year, but it will exceed the target assumed in the draft budget. “Based on the current evolution, without measures, we are heading towards 5.8-6%. We need to reduce the deficit by at least 0.5-0.7%,” said the quoted sources.
Among the measures that the Coalition is taking into account are the elimination of some tax facilities, the taxation of multinationals on turnover, if the profit tax is less than 1% of the turnover, as well as the reduction of the ceiling for SMEs. PSD and PNL leaders also discussed the introduction of the so-called “luxury tax”.
Fiscal measures discussed in the Coalition:
- tax of 16% on profit, but not less than 1% of CA for companies with a turnover of more than 50 million euros;
- elimination of the CASS payment exemption for Construction, Agriculture and the Food Industry. (the ceiling of 10,000 lei remains for the rest of the facilities: income tax and the second pillar of pensions);
- elimination of the income tax exemption in the IT sector for salaries exceeding 10,000 gross lei;
- for micro-enterprises up to 300,000 lei a tax of 1% will be paid, over 300,000 lei and up to the ceiling of 2.5 million lei 3% will be paid on the turnover;
- luxury cars over 75,000 euros will be taxed with a tax of 0.3% of the amount that exceeds the value of 75,000 lei;
- 0.3% tax for properties over 500,000 euros with exceptions: houses bought on credit where several options are discussed. As in the case of luxury cars, the tax is applied for the amount that exceeds the value of 500,000 lei of the property.
- the tax on dividends is maintained at 8%.
- the ceilings of 6, 12, 24 salaries are kept in the case of self employed’s health insurance contribution, but what is exceeded is paid on real income. CAS ceilings remain as they are today.
Welcome Romania to Normality. The Eldorado is over. We will all now start paying like all other normal EU citizens do. Still though, the new proposed measures are peanuts compared to other countries in the EU.