The Government passed, on Wednesday, a series of measures regarding the tax on SMEs, income tax and social security contributions by amending the Tax Code.
It says in a press statement that in the area of corporate taxation, the emergency ordinance adopted at its meeting on Wednesday revises taxes on microenterprises, which would be subjected to a 1-percent tax on real revenues, and so would do the SMEs deriving revenues of between 500,000 euros and 1,000,000 euros currently paying a 16-percent profit tax.
The ordinance is said to translate into Romania’s legislation the provisions of Directive 2016/1164/ EU combatting tax base erosion and profit shifting.
In the area of mandatory social security contributions, the amendments envisage both a cut in their aggregate shares by two percentage points, from 39.25 percent to 37.25 percent, as well as the reduction of the social security contributions from the nine to three, the pension contributions (CAS) paid for the employees; the healthcare contributions (CASS) paid for the employees, and the employment insurance contribution, paid for by employers.
The transfer of the tax burden on the mandatory social security contributions payable by employers for the employees in case of wage income and similar income is as follows: “CAS and CASS shall be due by individuals, namely employees, including in the case of individual full or part-time employment contracts on which CAS and CASS due may not be less than the level of the social security contributions related to the gross minimum wage in force in the month for which they are due, adjusted for the number of working days in the month in which the contract was active.”
Source: Romanian Government official statement.