- Good news for Romanians who have a salary of less than 4,500 lei
- What happens from August 1, 2022
Good news for Romanians who have a salary of less than 4,500 lei. What happens from August 1st
The Romanian government has announced deductions for salaries below 4,500 lei gross. Therefore, the adopted ordinance revises a system of granting personal deductions with regard to taxpayers who make income from wages.
Thus, a personal deduction is proposed that will be granted, starting from August 1, 2022, to natural persons with monthly salaries of up to 4,500 gross lei, but also additional deductions for young people who are under 26 years of age and children who are up to 18 years.
The additional personal deduction will be granted as follows:
-15% of the gross minimum basic salary per country guaranteed in payment for natural persons up to the age of 26, who earn income from salaries whose level is up to a level of 2,000 lei above the minimum basic salary gross per country guaranteed in payment approved by decision of the Government of Romania, in force in the month of income realization;
– 100 lei per month for each child up to the age of 18, but only if the child is enrolled in an educational institution and the parent earns income from wages, regardless of their level.
The ceiling changes
The government ordinance will also change the ceiling up to which taxpayers determine their annual net income based on income rules, and it will be from 100,000 euros to 25,000 euros. The modification of the ceiling will take into account taxpayers who earn income from independent activities, these being other than income from liberal professions obtained from the provision of professional services, according to the normative acts that regulate the organization and exercise of the profession in question.
Also, the basis of calculation for the application of social contributions to Romanians’ pensions and health in the case of persons who earn income from independent activities, income from intellectual property rights and income from association with another legal entity is also changed as follows:
– the level of 12 gross minimum wages per country, in the case of incomes between 12 and 24 gross minimum wages per country;
– the level of 24 gross minimum wages per country, in the case of incomes of more than 24 gross minimum wages per country.
Taxation of part-time wages
Part-time wages that are below the minimum wage will be taxed at the minimum wage as if they were full wages. There will be only one exception in the case of pupils and students under the age of 26, people who follow a form of apprenticeship, pensioners who benefit from a state pension, natural persons who earn income from wages who have several employment contracts with part-time or full-time and whose accumulated value exceeds the minimum wage in the economy, as well as people with disabilities. All these measures will come into force from 1 August 2022.
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