The personal exemption granted to individuals could increase from 29,700 to 40,020 lei annually, according to the fiscal policy project for 2027. The major personal exemption is also expected to be increased to 40,020 lei, which currently stands at 34,620 lei. Authorities argue that the measure aims to reduce the tax burden and increase the disposable income of households, reports IPN.
The project also envisages changing the rules regarding the “main residence”. The individual could demonstrate that a property is their main residence either by having their domicile established there for at least three years, or by the fact that this is their only residence for at least three years and is registered in the Real Estate Register. The change impacts the income tax exemption for capital gains obtained from the sale of the residence.
Another change targets the percentage designation mechanism. Individuals who have income tax debts of up to 100 lei should be able to continue using this mechanism. Currently, any debt, regardless of its value, can lead to the invalidation of the percentage designation.
New rates are proposed for investment income. The dividend tax is expected to increase from 6% to 8%, for dividends distributed from profits generated starting with the fiscal year 2027. In the case of capital growth, the project eliminates the 50% reduction, so that the 12% tax would be applied to the entire capital growth. Also, cash donations made by economic agents for the benefit of individuals are expected to be taxed at 12%, compared to 6% currently.
The project also envisages the narrowing of the list of non-taxable incomes, including by taxing dividends pertaining to periods up to 2008, incomes from copyright obtained by persons over 60 years old in the field of literature, art and science, as well as certain payments made by employers for testing and vaccination against COVID-19. Earnings from promotional campaigns would remain non-taxable only if the value of each gain does not exceed 10 thousand lei.
