On 10 November, the Official Gazette, Romania’s official legal publication, published a governmental emergency ordinance amending the Tax Code.
The ordinance eliminates six of the current nine social and health security contributions, and reduces their cumulative rate from 39.25% to 37.25% of gross wages. Companies will pay a labour insurance contribution of 2.25% instead of the current 23–24% in contributions on gross salary. Instead of the current 15–16%, a combined rate of 35%, consisting of social security and health insurance contributions, of the employee’s gross salary will be withheld by the employer. The ordinance also reduces the personal income tax from 16% to 10% and increases the turnover limit below which companies are classified as microenterprises, which pay 1% tax instead of the usual 16% rate, from EUR500,000 (USD591,000) to EUR1 million.
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