The income flat rate of individuals could be replaced with a 10 percent tax on the global income of households. The taxable income will be set after from the total income received by the members of a household a number of expenses will be deduced, according to the Economic Code project, which is currently being drafted.

According to the project, each household will receive a score, provided according to the number of family members and a non-taxable ceiling. The annual global taxable income is set after the non-taxable ceiling will be deduced from the annual income.

According to the calculation formula in the project, establishing the non-taxable household ceiling is calculated as the product of the household value, RON 1,000 lei and 12 months (Pn = P x RON 1,000 x 12 months). The score of the household is equal to the number of household members plus one point (P = number of points +1). Thus, for example, in the case of a single-person household, the non-taxable ceiling will be 24,000 lei / year.

When the adjusted annual global income is negative, households where there are underage children will receive a financial income of RON 1,600 per child. Children enrolled in education programs benefit from the same amount unless they miss more than 10 percent of the total number of classes.

“The globalization recipe of incomes will generate an increase of the tax base. Today, in Romania, there are 360,000 part-time work contracts that serve as unique source of income. Here we are talking about a grey area,” Minister of Finance Viorel Stefan said.

A household, according to the future law, from a fiscal perspective, is defined as a group of individuals who can be related or not, but are holding a household together and then accept to register with common patrimony. Then one of them becomes their representative in relation with the tax authorities, with a fiscal consultant acting as an intermediary,” Stefan said.