Amendments to tax law as of 1 January 2020 | Romania

1. Below is a list of the main provisions included in Law no. 263/2019 on the amendment of Law 227/2015 regarding the Fiscal Code, effective 1 January 2020.

• The social security and health insurance contributions due for the salary income obtained from part-time employment agreements will be computed based on the actual salary income and not by reference to the national minimum wage.
• Excise duties on motor fuel are decreased. The new decreased levels have subsequently been adjusted in accordance with the inflation rate, and published on the website of the Ministry of Public Finance.

Law no. 263/2019 was published in the Official Gazette of Romania no. 1054/30.12.2019.

1. The minimum annual income threshold against which social security and/or health insurance contributions will be due by persons earning non-salary income (such as income from freelance activities, intellectual property rights or investments) was increased as of 1 January 2020 from lei 24,960 to lei 26,760 due to the increase of the minimum gross wage. As the minimum gross wage is also the basis for computing social security and health insurance contributions, the amount of these contributions will increase as well.

Government Decision no. 935/2019 was published in the Official Gazette of Romania no. 1010/16.12.2019.

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Co-author: Anamaria Tocaci