A. The taxpayers that conduct only innovation or research-and-development activities shall be exempt from income tax for the first 10 years of activity. This measure shall observe the regulations concerning state aid.
This provision is applied starting with 06 January 2017.
B. The legal persons that, on 31 December 2016, earned revenues that did not exceed the equivalent in RON of 500,000 EUR shall be considered microenterprises (the exchange rate used for establishing the equivalent in EUR is the one valid at the end of the financial year during which said revenues were earned).
This provision shall apply starting with 01 February 2017 to all Romanian legal persons that, on 31 December 2016, meet the requirements set by the Tax Code. The return regarding the income tax owed, for the profit obtained between 01 and 31 January 2017, must also be submitted by this deadline.
The income tax rate for the microenterprise shall reach 1% for those that have one or more employees and 3% for the enterprises with no employees.
C. The natural persons that have concluded individual employment agreements for a period of 12 months with Romanian legal persons that conduct seasonal activities, as listed under art. 1 of Law 170/2016 on the tax specific to certain activities, shall be exempt from paying income tax (salaries and similar earnings).
D. The medical services provided as subscription, covered by the employees, shall de deductible upon the income tax computation, up to the limit of 400 EUR per annum.
This provision shall apply starting with the salaries of February 2017.
The revenues resulted from the transfer of property from the own patrimony shall be exempt from tax for the amount of 450,000 RON. A tax at the rate of 3% shall be paid for the amounts exceeding this limit.
This provision shall apply starting with 01 February 2017.
E. The upper limit (5 times the gross average wage) shall be eliminated for the persons earning salaries or similar earnings for which the social security contribution for pensions is computed.
This provision shall apply starting with the earnings corresponding to February 2017.
F. The upper limit (5 times the gross average wage) is maintained for the natural persons that conduct independent activities or for the natural persons that earn revenues from intellectual property rights and that owe the social security contribution for pensions.
The upper limit for the health insurance contribution shall be computed on a monthly basis that cannot exceed 5 times the gross average wage for natural persons that conduct independent activities or natural persons that earn revenues from intellectual property rights, as well as for persons that earn revenues from agricultural activities or rental and leasing activities.
The flat rate expense of 40% shall be maintained for the revenues from rural leases and rents.
The natural persons that earn revenues from investments shall not owe the health insurance contribution if they earn revenues for which the health insurance contributions are already computed.
These provisions shall apply starting with the revenues of February 2017.
This provision is applied starting with 06 January 2017.
B. The legal persons that, on 31 December 2016, earned revenues that did not exceed the equivalent in RON of 500,000 EUR shall be considered microenterprises (the exchange rate used for establishing the equivalent in EUR is the one valid at the end of the financial year during which said revenues were earned).
This provision shall apply starting with 01 February 2017 to all Romanian legal persons that, on 31 December 2016, meet the requirements set by the Tax Code. The return regarding the income tax owed, for the profit obtained between 01 and 31 January 2017, must also be submitted by this deadline.
The income tax rate for the microenterprise shall reach 1% for those that have one or more employees and 3% for the enterprises with no employees.
C. The natural persons that have concluded individual employment agreements for a period of 12 months with Romanian legal persons that conduct seasonal activities, as listed under art. 1 of Law 170/2016 on the tax specific to certain activities, shall be exempt from paying income tax (salaries and similar earnings).
D. The medical services provided as subscription, covered by the employees, shall de deductible upon the income tax computation, up to the limit of 400 EUR per annum.
This provision shall apply starting with the salaries of February 2017.
The revenues resulted from the transfer of property from the own patrimony shall be exempt from tax for the amount of 450,000 RON. A tax at the rate of 3% shall be paid for the amounts exceeding this limit.
This provision shall apply starting with 01 February 2017.
E. The upper limit (5 times the gross average wage) shall be eliminated for the persons earning salaries or similar earnings for which the social security contribution for pensions is computed.
This provision shall apply starting with the earnings corresponding to February 2017.
F. The upper limit (5 times the gross average wage) is maintained for the natural persons that conduct independent activities or for the natural persons that earn revenues from intellectual property rights and that owe the social security contribution for pensions.
The upper limit for the health insurance contribution shall be computed on a monthly basis that cannot exceed 5 times the gross average wage for natural persons that conduct independent activities or natural persons that earn revenues from intellectual property rights, as well as for persons that earn revenues from agricultural activities or rental and leasing activities.
The flat rate expense of 40% shall be maintained for the revenues from rural leases and rents.
The natural persons that earn revenues from investments shall not owe the health insurance contribution if they earn revenues for which the health insurance contributions are already computed.
These provisions shall apply starting with the revenues of February 2017.
Any presented information is general and is not meant to address the specific conditions of a particular individual or legal person. Although we try to provide accurate and up-to-date information, there is no warranty that such information is accurate at the time of its receipt or that it continues to be accurate. No action should be taken based on this information without relevant professional assistance following a careful examination of the circumstances that are typical of a particular state of affairs.
