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The tax benefits of 2016 – the reduced taxation of dividends
2016 brings fiscal benefits concerning the taxation of the dividends distributed to the shareholders, the dividends related to the profit obtained in previous years. Starting with 2016, according to the new Tax Code, the tax on dividends was reduced from 16% to 5%.
In the previous years, the tax on dividends amounted to 16%, plus the contribution to the mandatory health insurance (CASS) of 5.5%, only if the natural person did not pay this contribution as a result of obtaining other categories of income (e.g. salaries). If a natural person had this contribution retained as a result of also obtaining other types of income, he/she had the obligation to pay only the aforementioned tax for the income obtained from dividends.
Starting with 2016, according to the provisions of the new Tax Code, the tax rate for dividends was reduced to 5%. Regarding the contribution to the mandatory health insurance (CASS), the provisions valid during the previous period shall also be applied during 2016.
It is important to mention that the fiscal provisions valid in 2016 are applicable to the dividends related to the profit obtained in the previous years (2015, 2014, etc.) and undistributed.
Thus, the persons that have to distribute dividends from previous years and that will do so in 2016, shall pay an income tax of 5% and a CASS rate of 5.5%, unless they also obtain other revenues for which the contribution to health insurance is owed. 2016, the year of the “transit” of tax changes is the most advantageous one for distributing dividends.
Starting with 2017, regardless of whether the natural persons that have the capacity of shareholders also obtain other types of income for which they pay CASS, the tax on dividends shall be of 5%, plus the CASS rate of 5.5%, leading to a total of 10.5%.
The CASS corresponding to the income from dividends shall be owed starting with the dividends distributed after 01.01.2017, this exception being strictly applied for 2016. However, for the income from dividends, the monthly computation basis for CASS shall not exceed 5 times the gross average earnings in force during the year for which the contribution is computed. -
More than 80% of Romanian employees are motivated monthly by bonuses in meal vouchers
Meal vouchers are an extra salary benefit exempted by the employee and employer contributions. Thanks to this advantage, a company benefits of up to 40% saving by offering meal vouchers instead of cash.
Starting from December 2016, meal vouchers offer the employees a bigger purchasing power because the exonerated value has been increased to 15 lei per employee, per day, which equals approx. 330 lei monthly.
Calculate here how much you gain for your company when offering Chèque Déjeuner meal vouchers, on paper or on electronic support.
The Cadhoc vouchers – the favorite gift of the employees for Christmas
Cadhoc vouchers are a modern gift that offers the beneficiary access to a nationwide network of more than 55,000 affiliate merchants from different domains: jewelry, cosmetics, fashion, toys, electronics, etc.
Simplified logistics, fast delivery and personalization of vouchers are extra advantages that make over 70% of the companies choose this kind of gift for their employees.
The good news from the latest Fiscal Code is that every employee and their underage children can benefit of 150 lei per person exempted from employee and employer contributions, including the income tax.
For example, an employee with a underage child may receive 150 lei for himself and another 150 lei for his child, the total amount will be 300 lei.
More details about gift vouchers advantages are available here, in Cadhoc video.
Order Cadhoc gift vouchers until 23 December 2016 and you can win one of the ten prizes of 600 lei each. For more details click here.
Any presented information is general and is not meant to address the specific conditions of a particular individual or legal person. Although we try to provide accurate and up-to-date information, there is no warranty that such information is accurate at the time of its receipt or that it continues to be accurate. No action should be taken based on this information without relevant professional assistance following a careful examination of the circumstances that are typical of a particular state of affairs.
