Romania - Income tax changed - January 31, 2017

The Chamber of Deputies has adopted a draft project that amends the Fiscal Code to remove the health contributions for pensions, as well as the income tax of 16% for the pensions below RON 2,000 (443 euro). Until now, only the pensions below RON 1,050 were exempted from paying the income tax of 16%. Currently, over 3.1 million retirees in Romania have pensions below RON 1,050. The new bill extends this measure to the pensions ranging between RON 1,050 and RON 2,000. A number of 1.43 million Romanians will thus be exempted from paying the income tax of 16%.

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