Romania Govt OKs Tax Base Expansion As Of July 1

The amendments include, among others, taxes on vouchers granted to employees, a duty levied on severance payments, as well as a 16% tax on interest income from banking deposits.

In addition, the state will collect a 25% tax on the net income from gambling, regardless of the amount. The current tax on gambling income is 20% for gains up to 10,000 lei (EUR1=RON4.2232) and 25% for gains exceeding that amount.

The revised Fiscal Code also reduces to 20% from 40% the level of deductible expenses for copyright works, calculated for the gross income.

Also, Romanians who own more than one house will be forced to pay a so-called „solidarity tax” to the local budget, on top of the existing tax on property. The government is hoping to collect additional RON31 million in 2010 following the introduction of the mentioned tax.

Another amendment to the Fiscal Code stipulates freelancers will be equally liable for the due social contributions and taxes as the companies they work with, provided their earnings are included in the salary category. The stipulation also covers copyright, which were reclassified as income from salary.