RRI Live!

Listen to Radio Romania International Live

The new Fiscal Code has been promulgated

The new Fiscal Code has been promulgated by president Klaus Iohannis, and the decision was hailed by prime minister Victor Ponta, in a message posted on a social network.

The new Fiscal Code has been promulgated
The new Fiscal Code has been promulgated

, 08.09.2015, 14:11

Sent back to Parliament in July by president Klaus Iohannis, and endorsed again by the legislature last week, the new Fiscal Code has been promulgated by the president, who also explained the decision he made in summer.



Klaus Iohannis: “No debate had been held on the draft. The Fiscal Code bill had not been debated even a little by civil society, before it passed the first time. I thought that was inappropriate, and also thought it needed a wider debate. This actually happened after it was sent back to parliament, and I can say the debate that took place afterwards met expectations.



The new version of the Fiscal Code includes all amendments agreed upon last week by the leaders of the political parties, as well as a series of technical proposals forwarded by several institutions. The reduction of the VAT to 20% as of January 2016, and further to 19% on January the 1st 2017, a date when the tax on special constructions and the additional excise on fuel will also be eliminated, are some of the best known measures stipulated by the new Fiscal Code.



Other provisions have been less debated, but their impact should not be overlooked either. One of them refers to the possibility of local councils to levy taxes five times higher than usual for buildings and plots of land in improper condition and situated in built up areas. The decision to include a building or a plot of land into this category should be made at local level.



The implementation procedures are established at the same level. Also, taxes on buildings which are privately owned are also increased. The object of taxation is also changed, the classification being made depending on the type of building and its destination, residential or not, that is. In exchange, companies employing people included in vulnerable categories are exempt from paying taxes on buildings and land.



The tax on special constructions will be eliminated as of early next year, but only for investments in agriculture. At the same time, the new fiscal code postpones until 2017 slashing the tax on dividends from 16 to 5%. Economic analyst Ionel Blanculescu, honorary advisor to Prime Minister Victor Ponta, said on Radio Romania that the slash in the VAT will contribute to reducing tax evasion and will encourage consumption.



Tax consultant Adrian Benta, however, believes that the new legislation tends to shift the burden of taxation from legal bodies to natural persons, and brings a number of drawbacks to small businesses, such as 20 times higher incomes for dwellings which are being used as headquarters of companies. Another increase refers to the introduction of additional taxes on pensions.

Photo: roaep.ro
Today in the News Monday, 25 November 2024

Surprising result in Romania’s presidential elections

The independent candidate Călin Georgescu takes the lead in the first round of the presidential elections in Romania.       Over 9.4...

Surprising result in Romania’s presidential elections
(foto: Polizia di Frontiera Romena)
Today in the News Monday, 25 November 2024

Closer to full Schengen accession

The Ministers of the Interior of Romania, Hungary, Austria and Bulgaria reached a historic agreement in Budapest on Friday on the enlargement of the...

Closer to full Schengen accession
Signing of the protocol (foto:
Today in the News Friday, 22 November 2024

Transition program towards F-35, launched

The Romanian Air Force’s transition program to 5th generation aircraft has been launched.   Romania’s decision to acquire advanced fighter...

Transition program towards F-35, launched
Energy (foto: EdWhiteImages / pixabay.com)
Today in the News Friday, 22 November 2024

The National Energy Strategy, adopted

Using local resources, reducing imports and making massive investments in production capacity are important elements of the new National Energy...

The National Energy Strategy, adopted
Today in the News Thursday, 21 November 2024

Political agreement on the new European Commission

    The leaders of the three major political groups in the European Parliament have given the green light to the members of the next...

Political agreement on the new European Commission
Today in the News Thursday, 21 November 2024

13 for Romania

    In Romania, presidential elections usually spark the greatest interest and emotions. Even more so this year, when the two rounds of the...

13 for Romania
Today in the News Wednesday, 20 November 2024

Romania’s natural gas, available for trading

On Tuesday, the Romanian company Romgaz launched its first issue of bonds on the Bucharest Stock Exchange, worth 500 million EUR. Romgaz is the...

Romania’s natural gas, available for trading
Today in the News Tuesday, 19 November 2024

Romania ahead of the presidential election

Next month, President Klaus Iohannis will end his second and last five-year term in office according to the Romanian Constitution. The so-called...

Romania ahead of the presidential election

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company