The new Fiscal Code published in the Official Gazette

In the Official Gazette of Romania, Part I, no. 688 dated 10 September 2015 was published the Law no. 227/2015 regarding the Fiscal Code.

The new Fiscal Code, coming into force in 2016, sets the legal framework for taxes and social security contributions; taxpayers having the obligation to pay such taxes; the calculation method and the method for paying taxes and social contributions; the amendment  of the taxes and social contributions.

As novelties we note the following:

– starting with 1 January 2016, the standard VAT rate will decrease from 24% to 20% and starting with 1 January 2017 it will be reduced to 19%;

– the rate of the dividend tax will decrease from 16% to 5% starting with 1 January 2017;

– the tax rate for small enterprises incomes remains 3%, however it is introduced the reduced tax rate of 1% for newly established companies that have at least one employee and are set-up for a period exceeding 48 months, provided that their shareholders / associates have not hold participation titles in other legal entities. The tax rate is 1% for the first 24 months as of the registration of the new legal entity;

– the provisions stating that individuals who owned several buildings also owed an increased building tax are removed;

– the tax for buildings will be payed according to the buildings classification: residential, non – residential and mixed -use.

:: The Source:

Adina Elena OPREA
Junior Lawyer


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