Romania introduces new tax on copyright income

By Iulia Blaga
    Romanian writers and artists are objecting to a pending law on social security contributions based on copyright income, which is expecte to be passed into law in February

    The new law requires persons deriving income on the basis of a copyright contract to contribute to the social security.

    The news got a heated reaction from the cultural and media community. The general opinion among artists and journalists - those most affected by the change - is that the law will mean by supplementary taxes their incomes. However, the Minister of Culture says that persons living on copyright contracts and freelance contracts should contribute to the social security too.

    It could affect film production by lowering budgets and slowing production.

    "Without supplementary financing, regional funds, or sponsorships, film production will slow down", says filmmaker Corneliu Porumboiu (Police, Adjective), stressing that the funds from the National Centre for Cinema (www.cncinema.abt.ro) have also decreased recently.

    Creative work - writing, directing, acting - represents between 10 and 12 % of a typical film budget