OUG 50/2015 to change the New Fiscal Code – 5% dividend tax

OUG 50/2015 to change the New Fiscal Code – 5% dividend tax

OUG nr. 50/2015 amending and supplementing Law no. 227/2015 regarding the Fiscal Code and Law no. 207/2015 regarding the Fiscal Procedure Code, was published into Official Gazette no 817/03.11.2015

The main provisions are:

Starting 1 January 2016, the dividend tax rate will be 5% of the gross dividend paid to a Romanian legal persons, unless the dividends are tax exempt under the fiscal law.

For individuals tax rate on dividends is also 5%.

The threshold that applies to microenterprises increased from EUR 65,000 to EUR 100,000.

Microenterprises income tax rates are:

a) 1% for microenterprises that have more than two employees, inclusive;
b) 2% for microenterprises that have one employee;
c) 3% for microenterprises that have no employees.

Starting 2016, VAT rate is reduced to 9% for the supply of drinking water and water for irrigation in agriculture.

Individuals who on 31 December 2015 own non-residential buildings (buildings in which an economic activity is performed) or mixed-use buildings are required to submit declarations to the Direction of local taxes up to 31 March 2016.

Legal persons have the same obligation for filing returns untill 31 March 2016.

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