The profit tax could be replaced by a two or three-step turnover tax from next year, according to the new Governing Program. As far as the taxation of profits is concerned, the authorities are considering in the energy sector the additional taxation of at least 20% of the profits from the extraction of natural and unprocessed resources in Romania.

On the other hand, the VAT reduction to 18% is postponed to 2019 and the 5% reduced rate will be extended from 2018, for the sale of housings with less than 120 square meters and for agricultural inputs. “The government will propose to change the VAT rate from 19% to 18% starting January 1st, 2019. Thus, we will have the second lowest share in the EU, after Luxembourg with 17%. We will expand the 5% VAT rate for the sale of housings (for those with a surface area of less than 120 square meters) and for inputs in agriculture from January 1st, 2018. We count on 50.000 new jobs in construction and, as a result  of our proposal to reduce VAT for the sale of housings”, it is shown in the Agerpres release.

All laws relating to the economic field will be included in the Economic Code of Romania that will be adopted by July 1st, 2018 at the latest. The Legislative Code will contain the Fiscal Code, the Fiscal Procedure Code, the Companies Establishment Law, the Tax Evasion Law, and all the other economic laws. “One of the basic principles of the Romanian Economic Code will be prevention. That is why we will adopt the Prevention Law by October 1st, 2017. This in fact means that an economic agent can no longer be penalized if he has not been guided and then prevented. Basically, we remove the red card and we replace it with two yellow cards”, it is also shown in the new Governing Program.