Three important taxes in Romania reduced in 2016

From the beginning of 2016 three important taxes in Romania are already with new, lower amount. VAT rate will now be lower from January 1, 2016, as well as withholding tax and income tax for small companies.

The VAT rate was reduced from 24% to 20% of all goods and services from January 1, 2016, but for some basic foods it is already reduced. In June 2015 for meat, fish, fruit and vegetables, the levy was reduced to 9%, which despite forecasts did not diminish revenues to the treasury, and raise them for consumption growth.

Those who receive dividends will also pay lower taxes – tax on dividends fell from 16% to 5%.

2016 starts with good news also for small businesses in Romania. Companies that have only a few employees will pay income tax of 1%, while those without employees will have to pay a tax of 3%.

About Author: brcci