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Tax burden for the employee versus PFA (self employed individual): what changes starting January 1st, 2018?

Tax burden for the employee versus PFA (self employed individual): what changes starting January 1st, 2018?

Government Emergency Ordinance no. 79/2017 brings important changes in the field of income tax and social contributions.

 In this context, the reduction of income tax and the transfer of social contributions from the employer to the employee (with only a percentage reduction and limited at only 2%) were the most debated topics in the last period. Substantial changes are being made not only to earnings but also to self-employment. If changes to wage earnings have sparked many controversial debates, those on self-employment have seemed to go unnoticed or very little touched.

 

For complete information, please see the Romanian version of the article, here.

Authors

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ERNST & YOUNG SRL