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FinMin Stefan: it is possible to reintroduce the global taxation of income and the single quota will be reduced at 10% starting with 2018

The minister of finances Viorel Stefan stated that, during the discussions regarding the amendments of the Fiscal Code starting with 2018 with the possibility of introduction of global taxation of the incomes,without increasing the fiscal burden. On the contrary. The government would intend to reduce the single quota from 16% to 10%.

Viorel Stefan denied the fact that the present government would intend to give up on the taxation single quota saying that they want that the level be reduced to 10% starting with 1 January 2018 and introduce the non-taxation of income under 2,000 lei.

The minister of finances said that the taxation of income will be globalised, thing which took place in Romania untll 2005. ‘ The globalisation of the taxation of income means that, if an employee makes their main income out of work he will pay 10% income tax every month, but at the end of the year until May of next year he will file a fiscal statement in connection to all income made and there will a recalculation’ Stefan said.

By recalculation, the tax-payer will have to pay to the state, in case he had supplementary income or he will have deductions of some sums.

The minister said that another advantage of the way of managing the taxation of incomes is the change of the behaviour of the citizens towards  commerce by the fact that they will be stimulated to keep all bills with the acquisitions made to prove deductible expenses. Moreover, there will be deductions for a certain volume of the bills presented.

‘The mechanism of globalisation of the taxation of income will not be functional unless there is fiscal councelling’ Viorel Stefan said, adding that a corpus of fiscal consultants will be hired by the state to offer fiscal consultancy to natural persons. A part of the fiscal consultants could be selected from amongthe 30,000 employees of ANAF.

Viorel Stefan said that the discussions  regarding the form of the Fiscal Code starting with 2018 are under discussion.

The minister of work Lia Olguta Vasilescu spoke on Tuesday evening, about a tax per household which would be introduced by the ministry of finances, saying that, with Romania TV, the Romanians could deduct all expenses, including the tuitions for their children, and thus the black market would disappear.
‘This is the American system, if you want. If they read the governing programme they will understand how it is done. The idea is to take the economy out of the black market economy. By the way it is where we take the money to increase salaries. We fiscalise everything. You, for example, if next year you have the possibility to take your child to ballet school and to deduce this bill, this expense, clearly you are going to ask for a bill. Logically. If you change the curtains in the house and you know you can deduce them, we aks for a bill? You will ask for bills everywhere. To take you child to private tuition, we ask for a bill to deduce the expenses’ the minister said.

Meanwhile, the liberals said that they plan to block in Parliament any attempt of the ruling coalition to scrap the flat tax rate.

PSD spokesperson Adrian Dobre said that the deductions will apply for certain household expenditure for healthcare and education.

He added that each family will be assisted by a tax consultant and these specialists will be paid by the state.

Dobre stated that the government does not plan to eliminate the flat tax.

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