The Ministry of Finance published on Monday night the draft amendment to the Fiscal Code, which provides, among other things, for increasing the dividend tax from 5% to 8%, lowering the income threshold to which a company is considered a micro-enterprise, a 9% increase in VAT on non-alcoholic beverages containing added sugar or other sweeteners or flavorings and an increase in excise duties on cigarettes.As to the taxation of micro-enterprises, the bill proposes to reduce the ceiling of revenues obtained in the previous year, from one million euros to 500,000 euros, but also establishing the condition that the micro-enterprise must have at least one employee. Currently, tax rates are differentiated for micro-enterprises according to the number of employees, a rate of 1% being applicable if the micro-enterprise has at least one employee and a rate of 3% if the micro-enterprise has no employees. Given that, according to the new bill, micro-enterprises will be required to have at least one employee and the tax rate of 3% is eliminated.The draft amendment eliminates the possibility of applying the profit tax if the conditions related to the value of the share capital and the number of employees were met.In terms of VAT, the increase in the quota for beverages containing added sugar aims, according to the cited document, to discourage the consumption of such products, with an important impact on the health of consumers.Also, as of January 1, 2023, the VAT rate increases from 5% to 9% for both the delivery of food, including beverages (excluding alcoholic and non-alcoholic beverages containing added sugar or other sweeteners or flavored ones), intended for human and animal consumption, as well as for restaurant and catering services and for hotel accommodation activities.The draft Ordinance proposes to increase the excise duties for cigarettes, starting with August 1, 2022, from 563.97 lei / 1,000 cigarettes to 594.97 lei / 1,000 cigarettes, as well as the adoption of a new calendar for the gradual increase in the total excise duty level for cigarettes.The draft normative act also proposes the revision of the regulation on the granting of fiscal facilities in the construction sector, as well as in the agricultural sector and in the food industry in the sense that only natural persons who obtain income from salaries and assimilated to salaries based on individual employment contracts concluded with employers that fall under the conditions provided in art. 60 point 5 and point 7 of the Fiscal Code. In these sectors, it is proposed to lower the ceiling up to which the tax facilities are granted, respectively from 30,000 lei per month to 10,000 lei per month, inclusively.
The Atlantic Council will honor Romanian president Klaus Iohannis with the Distinguished International Leadership Award for his remarkable career, exemplary leadership of Romania, and his transatlantic and European leadership role. The Atlantic Council’s Distinguished Leadership Awards are often referred to by media as “the Washington Oscars.” Among the honorees are a European head of state, […]
The colorful rapeseed fields in the southern part of Romania have been photographed by NASA from a satellite and featured in an accompanying article titled “Golden Fields in Romania.” The spectacular images were taken last month above the area where the Olt River intersects with the Danube. According to the article, NASA personnel were impressed […]
UiPath, an AI-based company founded by Romanian entrepreneurs and listed on the New York Stock Exchange in 2021, has recruited Raghu Malpani as Chief Technology Officer. Malpani, who was Corporate Vice President at Microsoft for the Microsoft 365 Application and Data Platform will report to the Director of Innovation and the Executive President of UiPath, […]
Production and new orders rise after nine straight months of decline Business confidence picks up, while hiring is back on the agenda Cost inflation eases and selling prices rise only fractionally An improvement in the health of the Romanian manufacturing sector was signalled for the first time in the survey's history, according to the latest […]
Raiffeisen Bank Romania continues its growth strategy in personal financial planning, up 50% in the first quarter of the year in the segment of investment plans, voluntary pensions and life insurance with a savings component. At the same time, it continued to support SMEs and accelerated investments to launch new functionalities in the mobile banking […]
Road crews have begun snow removal on Romania’s spectacular mountain road known as Transfăgărășan. Since there is less snow than in other years, the road could be opened much earlier than the usual date of July 1, according to authorities. Transfăgărășan, Romania’s second-highest road after Transalpina, is being cleared of snow so it can be […]
