income tax

Romania's proposed finance minister Ionut Misa said Thursday the government plans to introduce a differentiated tax on income for all companies, in three gradual stages, of 1%, 2% and 3%, respectively.

The number of Romanian taxpayer paying their income tax online has increased gradually over the past months, from 9,000 in September to over 50,000 in December, Finance Ministry state secretary Dan Lazar said Tuesday.

Romanian Prime Minister Emil Boc said Monday the 2011 state budget won’t consider the two recently adopted bills lowering VAT on food and exempting small pensions from income tax because they would significantly widen the deficit.

A progressive income tax in Romania will only encourage the black labor market and drive foreign investors away, as workforce costs will be on the rise, according to representatives of companies in the Romanian transport sector.

Romania's Senate adopted Tuesday a draft law exempting pensions lower than 1.200 lei (EUR1=RON 4.3047) from the 16% income tax.