The threshold above which individuals' incomes will be taxed at the highest rate of 18% rose in 2014 to 27,852 lei per annum from 26,700 lei last year, under amendments to the Tax Code that took effect on January 1, IPN reports.
Earnings below this threshold will be taxed at 7%.
Basic personal allowance rose in 2014 to 9,516 lei from 9,120 lei and enhanced personal allowance rose to 14,148 lei from 13,560 lei last year. The allowance for dependants increased from 2040 lei to 2,124 lei.
Under the same set of amendments, incomes earned by individuals selling agricultural goods to other individuals will not be taxed, unless these have the status of individual entrepreneurs or farming households.
Other income tax exemptions are available for money from special funds or from grants, from programs approved by the Government, and for proceeds from artwork or literary royalties obtained by individuals aged 60 years or older. Incomes from international projects and grants contributing to sustainable education or research will be also exempted.
