Personal exemption when calculating income tax for individuals will be increased

In 2010, the personal exemption when calculating the income tax for private individuals will be raised by 800 lei, from 7,200 to 8,000 lei, while the exemption for maintained persons by 120 lei, from 1,680 to 1,800 lei.

The exemptions will be given to the guardians of minors aged between 14 and 18 and to the adopters. This is said in the draft budget law for 2010 approved by the Government, reports. The term during which the income from interest is not taxed is proposed to be extended by 5 years so as to support the individuals and legal entities that open accounts with banks or own corporate securities. So as to ensure fiscal equity between the individuals who pay salary income tax and those who earn winnings by gambling, the tax rate on winnings for individuals will be raised from 10% to 18%.

The fiscal policy for 2010 includes a number of measures aimed at preventing tax evasion and adjusting the fiscal policy and administration to the European norms. The 20% VAT on the agricultural products sold on the home market would be reduced to 8%. There will be introduced a norm that will ban the sale of the assets obtained from capital investments after the VAT is refunded.

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