Global income tax hits deadlock

The Finance Ministry is to finalise the changes brought to Ordinance 73, on the global income tax, within two months. Beside procedure changes, the new legislative text will also be built on a different fiscal frame, Cornelia Petreanu, head of the Legislation Department within the Finance Ministry, told Ziarul Financiar.

According to the new regulations, the ceiling for pension taxation will rise to 5 million lei, while supplementary deductions will be brought to the same level.

The taxation system for revenues derived from rentals, salaries earned abroad and amounts derived from consigned goods is being revised. The new text will include stipulations regarding the insurance policies underwritten by the employer.

Finance minister Mihai Tanasescu announced at the beginning of his mandate that he was going to change global income tax regulations and, consequently, natural persons may submit the income statement by May 31, instead of March 31.

A new informing campaign is needed for the population to understand the purpose of the global income tax and the procedures required by this law’s enforcement.

The Finance Ministry also announced that companies were allowed to submit the employees’ fiscal files by the end of February, instead of January 31. Even so, the Financial Offices had to cope with a huge number of accountants seeking to submit the required documents on February 28.

“We had to keep the offices open until late hours. The documents submitted in electronic format were accepted without being previously checked, as this operation will be performed later,” Tanti Anghel, head of the Fiscal Procedures Office within the Finance Ministry, told Ziarul Financiar.