A draft emergency ordinance published by the Ministry of Public Finances on October 26th and presented in a first reading in Government sitting held the same day, intends to reduce the income tax from 16% to 10% for employees, pensioners, royalties and private practices, rents, interests, leases, prizes, agricultural activities, investments and incomes form other sources. The initial measure of eliminating income tax for wages under RON 2000 was abandoned by the Government, these wages too being taxed 10%.
The same legislative act regulates the transfer of all social contributions (except the work insurance contribution – formerly known as the solidarity tax) to employees. According to the document, 35% of the gross salary will be retained by the employer in the employee’s name
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