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October 1, 2020
BUSINESS

Businessmen: Tax on incomes from rents, a non-transparent increase

The Government decided yesterday to impose the payment of the contribution to the public fund of health insurance upon various kinds of investments like for rental income, Mediafax informs. To be more precise, starting next year, natural persons must pay to the National House of Health Social Insurances (CNASS) 5.5 pc of the income earned from rents, even if they already pay this contribution from other incomes. The Romanian Business Leaders Foundation and the Businessmen’s Association of Romania consider that enforcing such a measure is equivalent to an artificial and non-transparent increase of the flat tax, reads a joint communiqué issued by the two organisations, quoted by hotnews.ro.
“This is a discriminatory fiscal measure because it applies only to the incomes from certain investments (rents) and not to all incomes from investments (interests, dividends, capital gains) or those resulting from the sale of real estate properties. The measure thus infringes the principle of fiscal equality with regard to imposing various types of incomes made by natural persons and the principle of the neutrality of fiscal measures in relation to various categories of investors and capitals,” explains the document. According to its signatories, this decision will not generate incomes to the budget, on short and medium term. Such contradictory and non-correlated incomes have as effect the increasing of the degree of non-conformity (avoiding the payment of the contribution) and a tendency to avoid declaring the respective incomes, and incomes in general.

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