ROMANIA: The Senate adopted VAT reduction to 20% from January 1st 2016 | Progresiv

The Senate adopted on Tuesday, September 1^st, the draft law on the Tax Code which states, among others, the gradual reduction of the standard VAT rate at 20% from January 1^st 2016 and to 19% from January 1^st 2017. The Tax Code passed by the Senate stipulates reducing the excise duty on fuel, extending the term to January 1^st 2017 and the elimination of the special tax on constructions from January 1^st 2017.

Also, the dividend tax will be reduced from 16% to 5%, with the extension of the period until 1 January 2017 and the calculation basis for the individual contribution of health social security will be capped at five salaries for individuals who earn from wages or assimilated income with extension of the period until January 1^st 2017.