In the Official Gazette no. 716 was published Ordinance 16 for amending and supplementing Law no. 227/2015 regarding the Fiscal Code, abrogating certain normative acts and other financial-fiscal measures
Among the most important fiscal aspects we mention the following:
Tax on dividends
- the tax rate of dividends paid by a Romanian legal entity to another Romanian legal entity was increased to 8%, the percentage being applied to the gross income obtained;
- clarifications regarding the conditions that should be fulfilled both by the legal person benefiting from the dividends and by the legal person that pay them for the application of the exemption from withholding and payment of the tax, were brought.
Tax on microenterprises’ income
- the limit for which a company is considered to be a microenterprises tax payer was reduced to EUR 500.000;
- the general tax rate was established at 1%;
- the taxation system becomes optional provided that all the criteria provided by the legislation are met at the time of application. Also, micro-enterprises can opt for the application of the profit tax starting with the next fiscal year;
- new criteria necessary to be met by companies for the application of the taxation system are introduced, respectively:
- has achieved income, other than those from consulting and / or management, of more than 80% of the total income
- has at least one employee
- has associates / shareholders holding over 25% of the value / number of participation titles or voting rights in no more than three Romanian legal entities that apply the taxation on microenterprises’ income, including the person who verifies the fulfillment of the conditions provided by this article;
- as an exception to these criteria, starting with January 1, 2023, the Romanian legal entities that carry out the activity within HORECA is able to opt for the application of this system without considering the regulated limit for changing the system;
- new types of Romanian legal entities not falling within the application of the taxation system were included, namely:
- performed activity in the banking field
- performed activities in the fields of insurance and reinsurance, of the capital market, including those that carry out intermediation activities in these field
- performed activities in the field of gambling
- performed exploration, development and exploitation activities of oil and natural gas fields.
- the income tax exemption for employees carrying out seasonal activities was eliminated;
- clarifications regarding the determination of the turnover necessary to be achieved for the application of the tax exemption for the employees in the construction sector as well as in the agricultural one and in the food industry, were brought;
- the limit on the monthly gross income for which the tax exemption is granted was reduced to RON 10.000;
- the limit for the annual gross income for which the taxpayers have the option to determine the net income based on income norms was reduced to EUR 25.000 euros;
- new categories of incomes that do not fall in the category of taxable ones within the limit of the monthly threshold of 33% of the basic salary corresponding to the job occupied, were brought.
Tax on gambling
The taxation percentages of the gains obtained by individuals were increased:
|Gross income threshold
|up to RON 10,000, inclusive
|over RON 10,000 – RON 66,750, inclusive
|300 + 20% for what exceeds the amount of RON 10,000
over RON 66,750
|RON 11,650 + 40% for what exceeds the amount of RON 66,750
Tax on transfer of real estate from personal patrimony
The tax rate changes as follows:
- 3% for the constructions of any kind and of the afferent lands, as well as on the lands of any kind without constructions, owned for a period of up to 3 years inclusive;
- 1% for the buildings described in letter a), held for a period longer than 3 years.
Social insurance contributions
It is confirmed the application of the exemption by 3.75% of the social insurance contribution, for the employees of the companies having their activity in constructions, that meet the conditions provided by the Fiscal Code at art. 60 pt. 5., and for the companies with activities in the agricultural sector and in the food industry, which fall under the conditions provided in art. 60 point 7, provisions applicable from August 1st, 2022 until December 31, 2028, for gross incomes between RON 3,000 and RON 10,000, thus reducing the ceiling for granting exemptions.
The following persons are exempted from the calculation and payment of the social health insurance contribution:
- children up to the age of 18, young people from the age of 18 to the age of 26, if they are students, including high school graduates, until the beginning of the academic year, but not more than 3 months after graduation, apprentices or students, doctoral students who carry out teaching activities of up to 4-6 hours per week, persons undergoing training to become soldiers or professional soldiers/officers;
- Young people up to 26 years old who come from the child protection system;
- Employees in the field of construction, in the agricultural sector and in the food industry, whose employers fall under the conditions of art. 60 pt. 5. and art. 60 point 7, exemptions applicable from August 1, 2022 to December 31, 2028, for gross incomes between RON 3,000 and RON 10,000.
The minimum salary of 3,000 lei gross established for an entire program is maintained for the employees from constructions area, the agricultural and food sectors.
The costs of the employer with vaccination of employees are included in the list of incomes that do not enter the monthly basis for calculating taxes, social security contributions and social health insurance, in order to prevent the spread of diseases that endanger their health and public health.
Within the limit of a monthly ceiling of no more than 33% of the basic salary, the following shall not be included in the monthly calculation base of social security contributions and tax, among others being:
- Benefits granted for activities based on the mobility clause, other than the allowances already established by law, within the established legal limit;
- The equivalent value of the food provided by the employer for its own employees, prepared in own units or purchased from specialized units, within the maximum value, according to the law, of a meal/ person/ meal ticket, for the activity carried out at the employer’s office (not for working from home, teleworking, for example);
- Accommodation and the equivalent value of the rent paid by the employers for the employees, within the limit of a monthly ceiling of 20% of the minimum gross basic salary per country guaranteed in payment/ person;
- The equivalent value of the tourist and / or treatment services, including the transport, during the leave, for the own employees and their family members, granted by the employer;
- The equivalent value of touristic and/ or treatment services, including transport, during the leave, within an annual limit, for each employee, at the level of an average gross salary used to substantiate the state social insurance budget for the year in which they were granted;
- Contributions to a voluntary pension fund and those representing contributions to voluntary pension schemes, paid by the employer for its own employees, up to a limit of EUR 400 per year for each person;
- Voluntary health insurance premiums, as well as medical services provided in the form of a subscription, paid by the employer for its own employees, so that at the level of the yearly amount does not exceed the equivalent in lei of the amount of EUR 400, for each person;
- The amounts granted to employees who carry out teleworking activities within a monthly limit of RON 400, corresponding to the number of days in the month in which the natural person carries out teleworking activities. The amounts are granted without the need to present supporting documents.
- The order of inclusion of income within the monthly limit of no more than 33% of the basic salary corresponding to the job occupied by the employee, is established by the employer.
Starting with August 2022, the way of establishing the basis of the social insurance and social health insurance contributions of the part-time employment contracts is modified:
- The social insurance contribution of part-time contracts may not be less than the value of the contribution related to the minimum gross salary, calculated proportionally to the worked period, except for: pupils and students up to 26 years; apprentices up to 18 years old; people with disabilities who cannot work full time jobs; certain categories of retirees; persons registered with several employment contracts, who accumulate incomes above the minimum wage, exceptions that must be justified by documents provided by the employee.
- If these contributions are below the level of those related to the minimum wage, and the persons do not fall within the exceptions, the employer bears the difference on behalf of the employee.
Personal income tax
In addition to the details already mentioned, medical leave allowances for the care of patients with oncological diseases become income exempt from the calculation and payment of income tax.
From January 1, 2023, the basic personal deduction is granted for individuals, who have a gross monthly income up to the level of the minimum gross basic salary in the country plus RON 2000, only to the employer where they declare the basic position. The method of calculating the personal deduction also changes, becoming a percentage of the minimum wage, related to the gross income achieved and the number of people included in the deduction.
The additional deduction is also introduced:
- 15% of the minimum gross basic salary, for employees up to 26 years old, who meet the conditions of gross income achieved,
- RON 100 per month for each child up to 18 years old, enrolled in an educational unit, for only one of the parents who earns income from salaries, regardless of their level. The granting is made only on the basis of supporting documents presented to the employer.
VAT rate changes to 9% in the case of the following goods and services:
- accommodation in the hotel sector
- restaurant and catering services
- delivery of chemical fertilizers and chemical pesticides of the type normally used in agricultural production;
The maximum value of a house that can be purchased by a natural person with a VAT rate of 5% was increased to RON 600.000.
The ad valorem excise duty will be calculated as follows:
- 13% on the retail price of cigarettes released for consumption, for the period August 1, 2022 – March 31, 2023, inclusive;
- 12% on the retail price of cigarettes released for consumption, for the period April 1, 2023 – March 31, 2024, inclusive;
- 11% on the retail price of cigarettes released for consumption, for the period April 1, 2024 – March 31, 2025, inclusive;
- 10% on the retail price of cigarettes released for consumption, starting with April 1, 2025.
Local taxes and fees
A minimum quota of 0.1% is established for the residential buildings and the afferent annex buildings, the actually applicable quota being to be established by decision of the local council.
A minimum quota of 0.5% is established for the non-residential buildings and the afferent annex buildings, the actually applicable quota will be established by decision of the local council.