Starting next year, businesses will be able to deduct more expenses for employees on the 12% individual income tax. These are expenses for employee training or expenses for contracting medical services for the benefit of the employee in the amount of an average national salary. Gifts in kind given to employees, including vouchers, as well as those given to their minor children on the occasion of Easter holidays, Christmas, March 8 or birthdays can also be deducted. It will be possible to deduct expenses related to gym memberships, in the amount of up to 50% of an average monthly salary, expenses for optional health care insurance in the amount of an average monthly salary and expenses for alternative care services for children aged 0-3 years in the amount that does not exceed 2,500 lei per child per month. The provisions are contained in the 2024 Tax Policy, adopted by Parliament in the second reading.
The measures are expected to help employers retain qualified workforce, attract new specialists, and diversify benefits packages.
Further, individuals will be able to deduct interest payments related to mortgage loans up to the value of an average salary.
The document also standardizes individual income tax withheld for investment and financial income, setting it at 6%. The intention is to stimulate individuals to invest their savings.
Meanwhile, the tax on excisable products, including tobacco, cider and some petroleum products, is expected to increase by 7% annually over the next three years, with the exception of certain categories of products, such as liquefied gas, fuel, beer or alcohol.
Also, the excise duty on cars will be eliminated from January 1, 2026 and replaced with a standard VAT rate.
Another amendment introduces a new tax regime for businesses licensed in collecting, storing, processing, marketing and exporting scrap metals, namely a 7% tax on sales.
