{"id":361,"date":"2023-08-10T10:38:06","date_gmt":"2023-08-10T10:38:06","guid":{"rendered":"https:\/\/romanian-accountants.com\/?p=361"},"modified":"2023-08-10T10:38:08","modified_gmt":"2023-08-10T10:38:08","slug":"new-tax-exemptions-for-natural-and-legal-persons","status":"publish","type":"post","link":"https:\/\/romanian-accountants.com\/new-tax-exemptions-for-natural-and-legal-persons\/","title":{"rendered":"New Tax Exemptions for Natural and Legal Persons"},"content":{"rendered":"\n<p>Significant changes in the&nbsp;<strong>tax legislation<\/strong>&nbsp;have been recently&nbsp; adopted by the Romanian authorities.&nbsp;<strong>New tax exemptions for natural and legal persons<\/strong>&nbsp;are implemented since January 1st 2017. These tax exemptions are meant to make Romania a more attractive&nbsp;<a href=\"https:\/\/romanian-accountants.com\/why-invest-in-romania\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>business investment<\/strong><\/a>&nbsp;location and provide further incentives for entrepreneurship. Detailed information about these&nbsp;<strong>tax exemptions<\/strong>&nbsp;can be provided to you by&nbsp;<a href=\"https:\/\/romanian-accountants.com\/\"><strong>our accountants in Romania<\/strong><\/a>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_64 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #002e5b;color:#002e5b\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #002e5b;color:#002e5b\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/romanian-accountants.com\/new-tax-exemptions-for-natural-and-legal-persons\/#new-tax-exemptions-in-the-fiscal-code\" title=\" New tax exemptions in the Fiscal Code\"> New tax exemptions in the Fiscal Code<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/romanian-accountants.com\/new-tax-exemptions-for-natural-and-legal-persons\/#general-provisions-of-the-new-fiscal-code-in-romania\" title=\"General provisions of the new Fiscal Code in Romania\">General provisions of the new Fiscal Code in Romania<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"new-tax-exemptions-in-the-fiscal-code\"><\/span><br><strong>New tax exemptions in the Fiscal Code<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><br>The&nbsp;<a href=\"https:\/\/romanian-accountants.com\/tax-code-in-romania\"><strong>Fiscal Code in Romania<\/strong><\/a>&nbsp;was amended at the end of 2016 and its measures became effective in January 2017. New economic terms were introduced, while others are defined in a different manner: dividends, royalties, stock option plan, related parties and tax transparent entities.&nbsp;<strong>New tax exemptions for natural and legal persons<\/strong>&nbsp;are included in this fiscal legislation:<\/p>\n\n\n\n<p>\u2022&nbsp;&nbsp; The health contribution insurance threshold was eliminated;<br>\u2022&nbsp;&nbsp; Excise duty levied on certain fuel products was decreased;<br>\u2022&nbsp;&nbsp; The tax incentive for&nbsp;<a href=\"https:\/\/romanian-accountants.com\/tax-exemption-for-reinvested-profit\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>reinvested profit<\/strong><\/a>&nbsp;was indefinitely extended;<\/p>\n\n\n\n<p>\u2022&nbsp;&nbsp; Legal persons are exempt from tax on income and salaries obtained from research and development activities;<br>\u2022&nbsp; The share capital for companies registering for&nbsp;<a href=\"https:\/\/romanian-accountants.com\/corporate-tax-in-romania\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>corporation tax<\/strong><\/a>&nbsp;on the date of incorporation was decreased \u2013 from EUR 25,000 to EUR 10,000;<br>\u2022&nbsp;&nbsp; &nbsp;Natural and legal persons&nbsp;<a href=\"https:\/\/romanian-accountants.com\/employment-contract-in-romania\"><strong>employed in Romania<\/strong><\/a>&nbsp;are tax exempt from all gifts received;<br>\u2022&nbsp;&nbsp; &nbsp;Buying an electrical vehicle is tax exempted, while acquiring a hybrid vehicle benefits from at least 50% tax reduction;<br>\u2022&nbsp;&nbsp; Payments to voluntary pension funds and private health insurance plans of up to EUR 400 per year are non taxable;<br>\u2022&nbsp;&nbsp; &nbsp;Excise refunds for certain products exported to other EU member states.<br><\/p>\n\n\n\n<p><a href=\"https:\/\/romanian-accountants.com\/about-us\"><strong>Our Romanian accountants<\/strong><\/a>&nbsp;can explain to you the new provisions of the fiscal code and tell you what&nbsp;<strong>tax exemptions<\/strong>&nbsp;you can benefit from.<br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"general-provisions-of-the-new-fiscal-code-in-romania\"><\/span><strong>General provisions of the new Fiscal Code in Romania<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><br>A series of&nbsp;<strong>economic and fiscal measures<\/strong>&nbsp;were adopted by the Romanian government at the beginning of this year. The most significant fiscal decision was to decrease the&nbsp;<a href=\"https:\/\/romanian-accountants.com\/vat-registration-in-romania\"><strong>VAT<\/strong><\/a>&nbsp;rate from 20% to 19%. The tax on special constructions was abolished and a cut on the excise tax on fuels was applied.&nbsp;<strong>Foreign legal persons<\/strong>&nbsp;having their place of effective management in Romania are considered taxpayers in the new fiscal code. All categories of social expenses are deductible up to 5% (the previous deduction rate was 2%) of the&nbsp;<a href=\"https:\/\/romanian-accountants.com\/Minimum-Wage-in-Romania\"><strong>salary<\/strong><\/a>&nbsp;fund. There are changes in the&nbsp;<strong>tax regime<\/strong>&nbsp;of income derived from disposal of shares in a&nbsp;<a href=\"https:\/\/romanian-accountants.com\/company-management-in-romania\"><strong>Romanian company<\/strong><\/a>, transfer of real estate and natural resources. Don&#8217;t hesitate to&nbsp;<a href=\"https:\/\/romanian-accountants.com\/contact\"><strong>contact<\/strong><\/a>&nbsp;our&nbsp;<strong>accounting firm in Romania<\/strong>&nbsp;for relevant information about the provisions of the new fiscal code.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Significant changes in the&nbsp;tax legislation&nbsp;have been recently&nbsp; adopted by the Romanian authorities.&nbsp;New tax exemptions for natural and legal persons&nbsp;are implemented since January 1st 2017. These tax exemptions are meant to make Romania a more attractive&nbsp;business investment&nbsp;location and provide further incentives for entrepreneurship. Detailed information about these&nbsp;tax exemptions&nbsp;can be provided to you by&nbsp;our accountants in Romania. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":126,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[19,305,26,307,309],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>New tax exemptions for natural and legal persons<\/title>\n<meta name=\"description\" content=\"Our accounting firm in Romania can give you relevant information about the new tax exemptions for natural and legal persons and the provisions of the new fiscal code.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/romanian-accountants.com\/new-tax-exemptions-for-natural-and-legal-persons\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta 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