The Ministry of Finance has announced that it is abandoning, at least for 2027, the planned changes to the salary taxation system, following public consultations and proposals received regarding the draft fiscal policy.
“Following the consultations and proposals received on the draft fiscal policy, the modification of the salary taxation system will not be applied in 2027,” the Ministry of Finance stated in its announcement.
The fiscal policy draft had proposed a change in the way employment income is taxed. Specifically, the income tax rate was to be reduced from 12% to 7% for individuals with annual incomes of up to one million lei. At the same time, social security contributions were to be shifted from employers to employees, by increasing the employee’s contribution rate and reducing the employer’s share.
The proposal also included the elimination of the annual personal tax exemption of 29,700 lei, as well as the 9,900 lei exemption per dependent child. In exchange, the government proposed introducing a monthly incentive of 500 lei for each employee, plus an additional 200 lei per child, payable only for the months in which the person earned employment income.
The issue will be discussed this evening on the program “Realitatea te privește” on Realitatea TV. The guest of Valentina Ursu will be the Minister of Finance, Andrian Gavrilita.