Modification of the Fiscal Code

G.E.O. 32 of 28.06.2016 

The Official Journal of Romania no.488 of 30.06.2016

Government Emergency Ordinance no. 32 of 28.06.2016 brings a number of changes to the Fiscal Code as follows:

Taxation of Income

  •  Starting with the 1st of August 2016, people who work in applied and/or technological research and development are exempt from wage taxation.

The line ministries are to issue an order to establish the conditions for its application.

  • Starting with the 1st of June 2016, it is exempt from taxation the transfer of real estate from the personal property as a result of applying Law no. 77/2016 on dation in payment.
  • The exemption applies for one single operation of dation in payment.
  • The exemption applies retroactively to transactions concluded until 30.06.2016.

Reduction of VAT from 20% to 9% for agriculture 

  • Starting with the 1st of August 2016, a reduced VAT of 9% is applied for some products and services used in agriculture, such as:
    • Fertilizers and pesticides
    • Seeds and other products for sowing and planting
    • Services specifically used in agriculture


For further information, please contact:

Florica Cira | Tax Advisor
Eugen Ionesco 69A, corp C3, ap.4, Cluj Napoca
Tel: (40) 364 113 331; Fax: (40) 364 113 330

The above information represents a summary of the recently published information, with no purpose of providing consulting. FinACo cannot be held responsible as a result of using the information contained in this document.