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The tax for compensatory payments on individual work contract termination for management is still 85%, according to article II of the Emergency Ordinance 55/2013. Until the publication, in Official Monitor, of the law for approving Government Emergency Ordinance 55/2013, law that repeals the 85% tax on compensatory payments for management on CIM termination, except those in the ASF Board, this tax rate is still applicable.
Constitutional Court decided that the law approving Government Emergency Ordinance 55/2013, as set at the project level, is constitutional.
The law project for approving GEO. 55/2013 provides, as is mentioned in Decision no . 381/25.09.2013 published in the Official Monitor number 608 of September 30, 2013, an amendment to Article II of GEO 55/2013. The original ordinance has specified a rate income tax of 85% for revenues, salaries / compensation / compensatory amounts at termination of employment of management.
In the form the Constitutional Court gave notice of constitutionality, the article II of GEO 55/2013 shall be repealed and the provision relating to tax rate of 85 % will be introduced in a new paragraph of art. 24 of Government Emergency Ordinance no. 93/2012 on the establishment, organization and operation of FSA, as follows:
«”In the article 24, after paragraph (1) shall be introduced a new paragraph, par.(1.1) as follows:
“Through derogation from Law no. 571/2003 regarding the Fiscal Code, as amended and supplemented, the income tax rate is 85% for revenues, salaries / compensation / compensatory amounts, under the law, when employment is terminated, the service or mandate of employees in management or persons who are appointed as members of the FSA Board or the authority reorganized according to art. 1, paragraph (2)”.»
Thus, after the publication of the law approving Government Emergency Ordinance 55/2013 in the Official Monitor of Romania, the tax rate of 85 % will be limited to the amounts received by members of the FSA or the authorities who are reorganized and, for the remaining cases, namely private companies, tax on compensatory amounts will return to 16%.
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