Senate amends Fiscal Code, differentiated tax on income earned by transfer of securities

The plenum of the Senate has adopted, on Wednesday, a legislative proposal regarding the amendment of the Fiscal Code, which stipulates that the taxation of income earned from the transfer of securities will be done in a differentiated manner, 1% for those held more than one year and 3% if the titles are held for less than one year, Agerpres reports.

There were 118 votes "in favour", one against and one abstention.

"The proposed legislative solutions have in view the creation of a fiscal environment that would encourage the attraction and involvement of individual investors on the Romanian stock market. The legislative initiative proposes the implementation of a system of taxation at the source for individual investors, through the application of a 1% tax on incomes from the transfer of securities held for more than 1 year and 3% on income from the transfer of securities held for less than one year, without the losses being compensated or declared. Thus, they would encourage medium and long-term holdings, something that ensures more predictable and durable investments for the listed companies. Additionally, the implementation of this system of taxation implies the annulment of fiscal credits accumulated on the basis of losses recorded in previous years," shows the exposition of motives.

The legislative proposal, initiated by a group of MPs from the Social Democratic Party, the National Liberal Party, the Save Romania Union, and the Hungarian Democratic Union of Romania, will be debated in the Chamber of Deputies, decisional forum in this case.