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Amendments to the Fiscal Code applicable from the beginning of 2018

Date: 07-02-2018
Author: Alina Răfoi

The beginning of 2018 brought a reorganization of the compulsory social contributions system to be paid by employers for their own employees. If last year we had six contributions, this year we have only three: some have been merged and others have been redeployed between employer and employee.

The CAS, ie 25% of the social security contribution (pensions), is due to individuals with the quality of employee and is retained from income.

The CASS (contribution to health insurance) of 10% is paid by the insured person, who earns salary but also other income from dividends, interest or other independent activities.

The CAM or 2.25% employment insurance contribution is payable by employers and the base is the gross wage bill. This contribution includes the risk and accident fund, the unemployment fund, the sick leave fund and the guarantee wage claim fund. In addition, employers pay 4 and 8 percent extra for special and special work conditions.

The Tax Code entered into force on 1 January 2018 has brought about a number of changes andat the level of personal income tax, income tax for micro-enterprises and corporate tax.

Income tax

Individuals pay a 10% tax on all taxable income categories, except for dividend income for which the 5% quota is retained. The tax on income from salaries is retained by the employer, who is obliged to submit the declaration and make the payment to the state budget.

Starting with 2018, the micro-enterprise income level is € 1 million, calculated at the NBR exchange rate as of 31 December 2017. Income tax for micro-enterprises remains at 1% for those with a full-time employee and 3% for non-employees .

Profit tax

Companies earning between 500,000 and 1,000,000 euros are taxed 1% on turnover.

These are just a few of the changes foreseen in the Fiscal Code that came into force on 1 January.

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