Radical Changes in Romanian Fiscal Code to Take Place
Radical changes in taxation of real estate transactions and dividend incomes will take place, according to ACT Media News Agency reports.
Romanian Ministry for Public Finances issued a draft Emergency Ordinance amending the Fiscal Code.
The amendments will bring substantial changes in the taxation of real estate transactions and of revenues from dividends, interests and capital market operations.
The tax rate for incomes derived from the sale of real estate assets owned by individuals will be cut down next year from 10 to 2 percent, but it will be levied on another tax basis.
The new proposal refers to the taxation of the revenues generated by transfer of ownership rights on all type of buildings and the related tract of land, which are sold within three years since acquisition.
Also, subject to taxes will be the incomes generated by transfer of ownership rights on land of any type, without buildings, acquired after January 1, 1990.
In exchange, no longer subject to taxes are those incomes generated by the sales of assets acquired by reconstruction of the ownership right under special legislative acts, inheritance or donation from relatives.
Incomes from dividends, gains from capital market operations, and from interests received for deposits set up starting Jan. 1, 2006 will be levied a 16 percent tax, as of next year.
Included in the category of incomes subject to this 16 percent tax are the interests received for deposits and current accounts set up since Jan. 1, 2006 and for savings tools and civil contracts signed after this date.
Under the same draft ordinance, cigarette excises will be increases, as of next year, as well as the taxes owed to local authorities by building and vehicle owners.
Also, the ministry announced the ceiling of exemptions from the VAT payment could be slimmed down significantly after Romania joins EU, from 2 billion old lei to the new lei equivalent of 35,000 euros.
