The amendments to the Tax Code are also designed to reduce the number of social security contributions from the nine to the three, namely the pension contributions (CAS) the healthcare contributions (CASS) and the employment insurance contribution, Finance Minister Ionut Misa said Wednesday.
"The ordinance aims to reduce the number of social security contributions from a current nine to three, leaving in place only CAS, CASS and the employment insurance contribution. Undoubtedly, this measure will reduce the bureaucracy from a fiscal point of view, while also being a measure that will simplify tax management very much and also reduce employment costs sustained by employers," Misa said at the start of a government meeting where he unveiled the amendments to the Tax Code.
He mentioned as another "beneficial measure" for employees, "the increase in the gross monthly pay against which personal tax deductions are granted."
"There is an increase from a current 1,500 lei to 1,950 lei, in the future, in the cap on fixed-amount deductions according to the number of persons in care. Another decrease will be from a current 3,000 lei to 3,600 lei in the future in the cap on bracketed deductions. The measure is taken to support the currently low-income employees, while being a form of assistance, given that a certain amount of the income is deducted from the taxable base. Under this measure, deductions are granted also to persons without anyone under their care, and this is a deduction of 510 lei, while wage earners having more persons under their care will qualify for deductions ranging from 670 lei to 1,340 lei, depending on the number of persons in care," said Misa.
The minister added that the measure "reduces the tax burden on the workforce, fostering employment and helping increase legal employment."
AGERPRES .
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