The income tax for individuals could be reduced from 12% to 7% for annual incomes of up to one million lei, according to the fiscal policy project for the year 2027, published by the Ministry of Finance for public consultations. For incomes exceeding this threshold, the authorities propose applying a rate of 15%, reports IPN.
A significant change targets the support given to employees. The personal exemption, which currently reduces the taxable base of each employee, could be replaced with a direct monthly allowance of up to 500 lei. This would be granted to officially employed individuals who have minor children in their care.
For the business environment, one of the main proposed changes targets the taxation of profit. The profit reinvested in business development will not be taxed, as long as it is not distributed in the form of dividends. On the other hand, for the profit withdrawn by owners, a tax rate of 15% will be applied. According to the authorities, the measure aims to stimulate investments.
Another provision of the project targets individuals working as freelancers. The authorities propose expanding the activities that can be carried out in this format, with a tax rate of 15% for incomes up to one million lei per year and 30% for incomes exceeding this amount.
Additionally, the authorities propose limiting certain local taxes. Thus, the property tax will not be able to exceed 1% of the property value, and local taxes calculated based on the turnover of companies will be capped at 3%.
The fiscal policy project for the year 2027 will be subject to public consultations until June 19th.
