Low VAT of 9 percent in agriculture and 16 percent tax exemption on the income of employees in research will take effect as of August 1, profit.ro informs.
The two amenities were approved by Emergency Ordinance 32/2016 and need ministers’ order to be applied. For now, the Ministry of Finance has posted a draft order on goods and services in agriculture for which VAT of 9 percent will be applied.
The reduced rate of 9 percent instead of 20 percent today, will be applied to the supply of fertilizers and pesticides used in agriculture, seeds and other agricultural products for sowing or planting, as well as the services provision for specific use in the agricultural sector.
Researchers will be exempted from taxes just like IT programmers. More specifically, they will be placed in the category of people exempted from paying 16 percent income tax, those earning income from wages and assimilated to salaries in research – applicative development and / or technological development.