INFORMATION

on the provisions of the GOVERNMENT EMERGENCY ORDINANCE

No. 79 of 8 November 2017 amending and supplementing

Law no. 227/2015 on the Fiscal Code

PUBLISHED IN: OFFICIAL MONITOR No. 885 of 10 November 2017 

     As of 1 January 2018, the compulsory social contribution rates will be transferred from the employer to the employee, without affecting the employee's net salary level.

- The compulsory social contributions regulated by the Tax Code are as follows:

a) the social security contribution due to the state social security budget of 25%;

b) health insurance contribution due to the budget of the Single National Health Insurance Fund

social health insurance of 10%.

- The tax rate is 10% and applies to taxable income.

- Employees who have a gross monthly income of up to and including 1,950 lei benefit from the Personal Deduction which is granted as follows:

(1) for taxpayers with no dependents - 510 lei;

(2) for taxpayers who have a dependant - 670 lei;

(3) for taxpayers with two dependants - 830 lei;

(4) for taxpayers with three dependants - 990 lei;

(5) for taxpayers with four or more dependants - 1,310 lei

The dependant can be the spouse, children or other family members, relatives of the employee or his/her spouse up to and including the second degree, whose taxable and non-taxable income does not exceed 510 lei per month.

For employees who earn gross monthly income from salaries between 1951 and 3600 lei inclusive, personal deductions are degressive compared to the above and are provided for in the OUG.

For employees with gross monthly income from wages and salaries of more than 3600 lei, no personal deduction is granted.