Stay informed! Legislative developments
21 December 2022
In order to calibrate our expectations for the year 2023 in terms of taxes, we present below a summary of the changes that will come into force as of 2023.
We remind you that on 15 July 2022 Ordinance no. 16/2022 was published, which significantly amends the Tax Code, most of the changes being applicable as of 2023, but there were other pieces of legislation that ought to be taken into account in the beginning of the year. At the same time, yesterday, 20 December 2022, Law no. 370/2022 approving Ordinance no. 16/2022 was published in the Official Gazette, which also makes some changes to the original provisions of the Ordinance (the law has been enacted but has not yet been published in the Official Gazette).
Thus, the important changes to take into account are as follows:
Dividend tax
The tax rate for dividend income distributed after 1 January 2023 has increased from 5% to 8%. This new rate shall apply to all dividends distributed (resident and non-resident individuals & companies), unless exemptions apply.
Thus, for dividends distributed until 31 December 2022, even if they are paid after 1 January 2023, the applicable tax rate will be 5%. In the case of dividends distributed during 2022 but not paid by 31 December 2022, the tax will be declared and paid by 25 January 2023.
This clarifies that in the case of dividends distributed on the basis of interim financial statements prepared during 2022, the dividend tax rate remains 5%, without recalculation of the tax on those dividends, after their adjustment on the basis of the annual financial statements for the financial year 2022, approved in accordance with the law.
Dividend tax shall also be payable on dividends distributed/paid to privately managed pension funds and/or voluntary pension funds.
Reinvested profit
The scope of reinvested profit is extended by including the following acquired assets: assets used in production and processing, assets representing refurbishment. Assets used in production, processing and refurbishment assets will be determined by order of the Minister of Finance.
Microenterprises
The system becomes optional. Romanian legal entities can choose to apply the microenterprise income tax from the tax year following the one in which they meet the microenterprise conditions set out in art. 47 (or from the year of incorporation for newly established companies) and if they have not been paying microenterprise income tax after 1 January 2023.
Microenterprises cannot choose the payment of corporate income tax during the tax year, but may exercise the option from the following tax year, with the exceptions set out in art. 52.
In other words, a company which on 31 December 2022 fulfils the conditions below can choose from 2023 onwards to apply either the microenterprise income tax or the corporate income tax. If after 1 January 2023 it no longer meets the conditions and is obliged to switch to corporate income tax (this analysis is carried out quarterly), it will switch to corporate income tax from the quarter in which it no longer meets these conditions and it shall not be able to return to the microenterprise regime. If the company still meets the conditions for the microenterprise regime, but wishes to switch to corporate income tax by choice, it will be able to do so from the following tax year and not during the year.
For newly established companies, in order to apply the microenterprise tax regime from their establishment, they must not have partners/shareholders holding more than 25% of the value / number of equity securities or voting rights in more than three Romanian legal entities eligible to apply the microenterprise income tax system, and the share capital must be held by persons other than the government and administrative & territorial units. At the same time, they must hire at least 1 employee within a maximum of 30 days from establishment.
The conditions for the application of the microenterprise tax regime from 2023 will be as follows:
- It generates income, other than income from consultancy and/or management (other than income from tax consultancy corresponding to the NACE code 6920), in a proportion of more than 80% of total income;
- Has at least 1 employee*;
- It earns up to € 500,000 (compared to € 1 million today);
- Has associates / shareholders holding more than 25% of the value / number of equity securities or voting rights in no more than three Romanian legal entities that qualify for the microenterprise income tax system, including the person verifying the fulfilment of the conditions set out in this art.;
- Its share capital is held by persons other than the government and administrative & territorial units;
- It is not in dissolution, followed by liquidation, registered in the Trade Register or with the courts, under the law.
Companies that do not meet all the above conditions owe corporate income tax (16% applied to taxable profit).
The € 500,000 threshold shall apply to income earned from January 2023. Thus, a company that meets the above conditions and whose income recorded by 31 December 2022 is more than € 500,000 but less than € 1 million can apply the microenterprise regime from 2023. However, all other conditions must be met by 31 December 2022.
It is not clear what income from consultancy and/or management refers to: should we analyse it only according to the NACE code of the activity carried out or according to the activity actually carried out (in the sense that many activities, although they do not have the words consultancy and management in their name, may have a consultancy component)?
A company applying the microenterprise regime from 2023 onwards will owe corporate income tax from the quarter in which it achieves revenues of more than € 500,000 or the share of consultancy and/or management income in total revenues exceeds 20%.
Also, a microenterprise will owe corporate income tax from the quarter in which it no longer has at least 1 employee. However, this condition will be deemed to have been met if, within 30 days of the termination of the employment relationship, a new employee is hired on an individual labour contract of indefinite duration or on a fixed-term contract of at least 12 months.
In the context of the above conditions, employee means:
- Person employed on for a full-time based on an individual labour contract;
- Persons employed under individual part-time employment contracts if the sum of the working time fractions laid down therein represents the equivalent of a full working time;
- Persons with management or mandate contracts, in accordance with the law, if their remuneration is at least at the level of the basic gross minimum wage guaranteed at national level.
Individual labour contracts / individual employment agreements, concluded according to special laws, as well as contracts suspended according under the law, are also taken into account. Suspended contracts are taken into account only if the period of suspension is less than 30 days and the situation is recorded for the first time during the tax year concerned.
With regard to suspended contracts, please note that even sick leave suspends the employment contract by law according to the provisions of the Labour Code, even if this suspension is not recorded in REVISAL. Clarification is still awaited on this issue – whether all types of suspensions under the Labour Code will be taken into account, or only those that involve recording the suspension in REVISAL.
The tax rate shall be 1% (the 3% rate is abolished).
The specific tax will be abolished from 2023 and entities operating in the HORECA* sector will owe either income tax on micro-enterprises (1% of taxable income) or corporate income tax (they will choose one of the 2 regimes).
*The NACE codes for the activities to which these provisions apply are:
- 5510 -“Hotel service”,
- 5520 – “Holiday and other short-stay accommodation”,
- 5530 – “Camping grounds, recreational vehicle parks and trailer parks”,
- 5590 – “Other accommodation services”,
- 5610 – “Restaurants”,
- 5621 – “Event catering activities”,
- 5629 – “Other food service activities”,
- 5630 – “Beverage serving activities”.
In the case of entities carrying out the above activities, it is not necessary to meet the conditions for microenterprises (e.g. they may remain in the microenterprise tax system even if the amount of income exceeds the € 500,000 threshold).
If these companies also carry out activities other than those listed in the NACE codes above, they will owe corporate income tax on these activities if they meet any of the following conditions:
- Earning more than 20% of their total income from consultancy and/or management;
- Income from other activities of at least € 500,000;
- Activities for which the corporate income tax is a compulsory regime (e.g. activities in the banking sector, activities in the insurance and reinsurance sector, capital market activities, including intermediation in these sectors, gambling activities, exploration, development and exploitation of oil and gas deposits).
At the same time, 4 new categories of entities are introduced which shall be subject to corporate income tax, the above conditions not being applicable:
- The Romanian legal person engaged in banking activities;
- The Romanian legal person carrying out activities in the fields of insurance and reinsurance, capital markets, including intermediation in these fields of business;
- The Romanian legal person carrying out gambling activities;
- The Romanian legal person engaged in exploration, development, exploitation of oil and gas deposits.
The order in which tax credits (tax reductions) are applied is being clarified in the context of the calculation of microenterprise income tax. Thus, the calculation is cascaded in the following order:
- Amounts related to sponsorships made;
- Purchase cost of electronic fiscal cash registers;
- Tax reduction according to the provisions of the Government Emergency Ordinance no. 153/2020 for the establishment of tax measures to stimulate the maintenance/growth of equity capital, as well as for the completion of certain regulatory acts.
The disclosure statement on the beneficiaries of goods/services/sponsorships shall be submitted by 25 June of the following year, during the period of application of the provisions of the Government Emergency Ordinance no. 153/2020.
The option to switch from the microenterprise regime to corporate income tax is eliminated if the share capital is at least RON 45,000 and the company has at least 2 employees. As the microenterprise regime becomes optional, companies can choose to pay corporate income tax.
Wages and similar income
Two new categories of non-taxable benefits that may be granted to employees are introduced, as follows:
- The cost of food provided by the employer for its own employees, individuals earning income from wages or similar income, as provided for in the labour contract or in the internal regulations – up to the maximum amount, according to the law, of one meal voucher/person/day, provided for at the date of granting, in accordance with the legislation in force. The number of days in the month during which the individual is working remotely or working from home or on rest leave / medical leave / delegation shall not be taken into account when determining the monthly non-taxable threshold. Food means food prepared in own establishments or purchased from specialised establishments. The provisions do not apply to employees who receive meal vouchers in accordance with the legislation in force.
- Accommodation and rent for accommodation/living accommodation provided by employers to their employees, natural persons earning income from wages or similar income, as provided for in the labour contract or internal rules – up to a non-taxable threshold of 20% of the minimum gross basic wage per month per person at national level, under the following terms:
- The employee or his/her spouse does not own or use a dwelling in the locality where he/she works;
- The accommodation/living space is found on the employer’s own premises, including hotel accommodation, or in a building rented from a third party by the employer;
- The rental contract is concluded in accordance with the law – rental contract concluded by the employer with the owner of the building;
- The non-taxable threshold is granted to one of the spouses, if both spouses work in the same locality, for the same employer or for different employers, on the basis of the spouse’s affidavit.
The lowest gross minimum wage in force at national level in the month for which the benefits are granted is taken into account when determining the threshold of 20% of the minimum gross basic wage guaranteed at national level.
Checking for compliance with the terms is carried out on the basis of supporting documents and falls within the responsibility of the employer.
A new monthly threshold is introduced for non-taxable wage benefits. Thus, the following monthly cumulated income does not constitute taxable income, up to the monthly threshold of 33% of the basic wage corresponding to the job held:
- Additional benefits received by employees under the mobility clause according to the law – within the limit of 2.5 times the legal level established for the delegation/posting allowance, by Government Decision, for staff of public authorities and institutions;
The exception to this rule is the additional benefits received by mobile workers provided for in the Government Decision no. 38/2008 on the organisation of the working time of persons performing mobile road transport activities (these amounts are non-taxable within the same limits as the daily allowance and are not taken into account in this analysis).
- The cost of food provided by the employer for its own employees, individuals earning income from wages or similar income, as provided for in the labour contract or in the internal regulations – up to the maximum amount, according to the law, of one meal voucher/person/day, provided for at the date of granting, in accordance with the legislation in force. The number of days in the month during which the individual is working remotely or working from home or is on rest leave / medical leave / delegated shall not be taken into account when determining the monthly non-taxable threshold. Food means food prepared in own establishments or purchased from specialised establishments. The provisions do not apply to employees who receive meal vouchers in accordance with the legislation in force.
- Accommodation and rent for accommodation / living accommodation provided by employers to their employees, natural persons earning income from wages or similar income, as provided for in the labour contract or internal rules – up to a non-taxable threshold of 20% of the minimum gross basic wage guaranteed at national level per month per person, under the following terms:
- The employee or his/her spouse does not own or use a dwelling in the locality where he/she works;
- The accommodation / living space is found on the employer’s own premises, including hotel accommodation, or in a building rented from a third party by the employer;
- The rental contract is concluded in accordance with the law – rental contract concluded by the employer with the owner of the building;
- The non-taxable threshold is granted to one of the spouses, if both spouses work in the same locality, for the same employer or for different employers, on the basis of the spouse’s affidavit.
The lowest gross minimum wage in force at national level in the month for which the benefits are granted is taken into account when determining the threshold of 20% of the minimum gross basic wage guaranteed at national level.
Checking for compliance with the terms is carried out on the basis of supporting documents and falls within the responsibility of the employer.
- The cost of tourist and/or treatment services, including transport, during the holiday period, for own employees and their family members, granted by the employer, as provided for in the labour contract, in the internal regulations, or received on the basis of special laws and/or financed from the budget – up to an annual threshold, for each employee, representing the level of an average gross wage used to base the state social security budget for the year in which they were granted;
- Contributions to a voluntary pension fund under Law no. 204/2006, as amended, and those representing contributions to voluntary pension schemes, qualified as such in accordance with the legislation on voluntary pensions by the Financial Supervisory Authority, managed by authorised entities established in Member States of the European Union or belonging to the European Economic Area, borne by the employer for its own employees – up to EUR 400 per year per person;
- Voluntary health insurance premiums, as well as medical services provided in the form of a subscription, paid by the employer for its employees, so that the yearly amount does not exceed the equivalent in RON of EUR 400 per person;
- Amounts granted to remote work employees to support the cost of utilities at the place where the employee works, such as electricity, heating, water and internet subscription, and the purchase of office furniture and equipment, within the limits set by the employer in the labour contract or in the internal rules – up to a monthly threshold of RON 400 corresponding to the number of days during the month in which the employee is working remotely. The amounts will be granted without the need to provide supporting documents.
The order in which the above income is included in the monthly threshold of not more than 33% of the basic wage corresponding to the job held shall be determined by the employer.
Thus, in the case of the 7 categories of amounts that can be granted to employees, there are individual limitations (e.g. voluntary health insurance premiums cannot exceed € 400 / year / employee) and a limitation on all 7 amounts combined. In order not to owe income tax and social security contributions on these amounts, employers must ensure that:
- The value of each of the 7 advantages does not exceed the individual limits;
- The value of all 7 benefits, cumulatively, does not exceed the limit of 33% of the basic wage corresponding to the job held.
Exemple:
An employee of ABC SRL receives the following benefits in January 2023:
- Contribution to the voluntary pension fund of RON 500;
- Voluntary health insurance premium of RON 350;
- RON 400 are granted for the work carried out remotely (in full);
The employee’s basic wage in January was RON 3,000.
We will examine whether the above benefits will be considered non-taxable when determining income tax and social contributions due.
| Benefit | Amount granted | Threshold | Tax treatment |
| Contribution to the voluntary pension fund | RON 500 | € 400 | Tax-free, below the threshold |
| Voluntary health insurance premium | RON 350 | € 400 | Tax-free, below the threshold |
| Amount granted for remote work | RON 400 | RON 400 | Tax-free, below the threshold |
| Total benefits | RON 1,250 | RON 990 | The difference of RON 260 shall be taxed |
Thus, although for each of the 3 benefits granted the individual limits are observed, since the cumulative value of the benefits exceeds the threshold of 33% of the basic wage (e.g. RON 990), the amount of RON 260 shall be taxed in January (income tax 10%, pension contribution 25%, health contribution 10% and labour insurance contribution 2.25% shall be calculated to this amount).
! As this is a monthly threshold, attention should be paid to the months in which the tourist service expenses are settled. Please note that employers also have the option of granting holiday vouchers (up to a maximum of 6 gross minimum wages guaranteed at national level) on which only income tax (without any social security contributions) is calculated, and these vouchers are not included in the 33% threshold of the basic wage.
From the year 2023 the amount of personal deductions is modified as follows:
- The basic personal deduction shall be granted to individuals who have a gross monthly income of up to RON 2,000 above the level of the minimum gross basic wage at national level (g. RON 4,550); the deduction shall be calculated as a percentage of the minimum wage, depending on the gross income earned and the number of dependants.
- An additional personal deduction shall be granted as follows:
- a) 15% of the gross basic minimum wage guaranteed at national level for individuals up to the age of 26 who earn income from wages up to the level referred to in paragraph 3.
- b) RON 100 per month for each child up to the age of 18, if the child is enrolled in an educational establishment, to the parent who receives income from wages, regardless of the level of the wages.
For the construction sector, when determining the share of turnover actually achieved from construction business in total turnover, the turnover achieved outside Romania shall be eliminated from the total turnover indicator. Thus, the weight shall be determined as the ratio of the turnover actually achieved from the construction business on the territory of Romania to the total turnover from all activity carried out only on the territory of Romania.
Also, from 1 January 2023, the tax facilities applicable to the construction, agricultural and food industry sectors shall apply only to income earned under individual labour contracts (e.g. management contracts shall not be taken into account).
Authorised Natural Persons (Freelancers)
Currently, for the purpose of determining the tax due by Authorised Natural Persons, two taxation systems are possible:
- Actual income system: involves the organisation of the accounts and the application of the 10% tax rate to the net income determined as the difference between receipts and payments made;
- Income tax bracket for self-employment income system: the 10% tax rate applies to the income bracket published by the Ministry of Public Finance (this depends on the NACE code of the business and the locality in which the business is carried out); this system does not apply to all activities.
The income tax bracket for self-employment income rule is a simplified system, as taxpayers are not required to keep accounts (they are required to fill in the Tax Register only with the part of the income earned); the tax base is fixed per year, regardless of the income earned.
In order to be taxed on a flat-rate basis, the authorised natural person must have a gross income of up to € 100,000 per year. From the year following the year in which this threshold is exceeded, it shall switch to the actual income system.
From 2023, the threshold is lowered from € 100,000 to € 25,000. Thus, the authorised natural persons taxed on a flat-rate basis will switch to the actual income system from the year following the year in which they exceed the € 25,000 threshold.
Rental Income
The flat rate of expenses used to determine taxable income in the case of rental income obtained by natural persons is abolished. Thus, the change will result in a 4% increase in the tax due in this case 10% of the rental value compared to 10% of 60% of the rental value. However, it should be noted that individuals have the right to choose to determine their net income in the actual income system, based on accounting data, and to determine the tax by applying the rate of 10% to the difference between receipts and expenses incurred.
It is again compulsory to declare rental contracts concluded by natural persons to the tax authorities, as well as any changes made, within 30 days of the conclusion/change to the competent tax authority. In the case of rental contracts in force on 1 January 2023, the registration of the contract concluded between the parties and the changes made shall be made with the competent tax office within 90 days of the date on which the obligation to register arose.
To register the lease, the taxpayer submits the “Application for registration of lease contracts”, hereinafter referred to as the application, accompanied by a copy of the lease contract. The taxpayer shall ensure that the copy of the lease agreement, bearing the number and date, is compliant with the original by writing “compliant with the original” and signing it.
The mentions concerning the amendment or termination of the rental contract shall be declared by filling in and submitting the application, ticking the box “Amendment” or “Termination” within the form, as appropriate, accompanied by supporting documents.
Income from sale of real estate
In the case of the sale of buildings of any kind and their related land from personal property, natural persons shall owe tax calculated on the value of the transaction by applying the following rates:
- a) 3% on buildings of any kind and land relating thereto, and on land of any kind without buildings, held for a period of up to 3 years inclusive;
- b) 1% for buildings described in a), held for more than 3 years.
At the same time, the deduction from the transaction value of the non-taxable amount of RON 450,000 is eliminated. Thus, the tax shall be calculated by applying the above rates to the full value of the transaction.
Social contributions
In the case of income earned by natural persons from self-employment and intellectual property rights, the social security contribution (pension, CAS) shall be calculated on a chosen income which may not be less than:
- a) the level of 12 gross minimum wages at national level in force on the deadline for submission of the return provided for in art. 120, in the case of income between 12 gross minimum wages at national level inclusive and 24 gross minimum wages at national level;
- b) the level of 24 gross minimum wages at national level, in force on the deadline for submission of the return provided for in art. 120, in the case of income equal to at least 24 gross minimum wages at national level.
In the case of income obtained by natural persons from pensions for the part exceeding the monthly amount of RON 4,000, from self-employment, from intellectual property rights, from association with a legal person, from the transfer of the use of goods, from agricultural, forestry and fish farming activities, from investments and from other sources, the health insurance contribution (CASS) shall be calculated at:
- a) the level of 6 gross minimum wages at national level, in force on the deadline for submission of the return referred to in art. 120, in the case of income between 6 gross minimum wages at national level inclusive and 12 gross minimum wages at national level;
- b) the level of 12 gross minimum wages at national level, in force on the deadline for submission of the return provided for in art. 120, in the case of income between 12 gross minimum wages at national level inclusive and 24 gross minimum wages at national level;
- c) the level of 24 gross minimum wages at national level, in force on the deadline for submission of the return referred to in art. 120, in the case of income equal to at least 24 gross minimum wages at national level;
Thus, for those who earn more than 24 minimum wages (e.g. RON 36,000 in 2022), the social contributions due shall double.
The impact of these changes is shown in the table below:
| Elements | Income attained | Threshold | 2023 | 2022 | Difference |
| Minimum wage | RON 2,550 | RON 2,550 | |||
| CAS* – 25% x threshold | Between 12 and 24 minimum wages | 12 minimum wages | RON 7,650 | RON 7,650 | – RON |
| CAS* – 25% x threshold | Over 24 minimum wages | 24 minimum wages | RON 15,300 | RON 7,650 | RON 7,650 |
| CASS – 10% x threshold | Between 6 and 12 minimum wages | 6 minimum wages | RON 1,530 | – RON | RON 1,530 |
| CASS – 10% x threshold | Between 12 and 24 minimum wages | 12 minimum wages | RON 3,060 | RON 3,060 | – RON |
| CASS – 10% x threshold | Over 24 minimum wages | 24 minimum wages | RON 6,120 | RON 3,060 | RON 3,060 |
VAT
The VAT rate increases from 9% to 19% for non-alcoholic beverages falling under the Combined Nomenclature codes 2202 10 00 and 2202 99 (beverages containing added sugar).
The VAT rate increases from 5% to 9% for accommodation in the hotel sector or in sectors with a similar function, including the letting of camping sites and restaurant and catering services, with the exception of alcoholic and non-alcoholic beverages falling within the Combined Nomenclature codes 2202 10 00 and 2202 99.
In the case of the purchase of housing as part of the social policy, from 2023 onwards, the 5% rate will be applied for a single purchase, individually or jointly with another natural person, for the purchase of housing with a useful area of up to 120 square metres, excluding household annexes, whose value, including the land on which it is built, does not exceed RON 600,000, excluding value added tax.
As an exception, in the case of housing for which legal acts were concluded prior to 1 January 2023 concerning the advance payment for the purchase of housing, in 2023 the rules currently in force shall apply:
- a) The supply of dwellings with a useful surface area not exceeding 120 square metres, excluding household annexes, the value of which, including the value of the land on which they are built, does not exceed RON 450,000, excluding value added tax, purchased by natural persons, if they have concluded by 1 January 2023 legal acts between living persons concerning the advance payment for the purchase of such dwellings;
- b) The supply of dwellings with a useful surface area of up to 120 square metres, excluding household annexes, the value of which, including the value of the land on which they are built, exceeds the sum of RON 600,000, but does not exceed the sum of RON 700,000, excluding value added tax, purchased by natural persons individually or jointly with another individual/other individuals, if they have concluded by 1 January 2023 legal acts between living persons concerning the advance payment for the purchase of such a dwelling.
SAF-T
In view of the update of the list of medium taxpayers, starting 1 January 2023, a new category of taxpayers shall be required to file the SAF-T (D406 Disclosure Return), i.e. medium taxpayers, as follows:
- taxpayers classified as medium-sized taxpayers as at 31 December 2021;
- taxpayers classified as small taxpayers as at 31 December 2021, who have maintained this classification during 2022, and as of 1 January 2023 are classified as medium taxpayers.
For taxpayers classified as medium-sized taxpayers as at 31 December 2021 and who are no longer in this category as at 1 January 2023, the filing of the D406 Disclosure Return becomes optional from the reference date for medium-sized taxpayers and mandatory from the reference date for small taxpayers. Taxpayers who have chosen to file the D406 Disclosure Return shall not be able to opt out at a later date. The option becomes effective by filing a D406 Disclosure Return validated by the National Tax Administration Agency.
However, taxpayers benefit from a grace period of:
– 6 (six) months for the first report, respectively five (5) months for the second report, 4 (four) months for the third report, 3 (three) months for the fourth report, 2 (two) months for the fifth report, for taxpayers who are obliged to submit the SAF-T file monthly;
– 3 (three) months for the first reporting, for taxpayers who are required to submit the SAF-T file quarterly.
Minimum wage 2023
As of 1 January 2023, the minimum gross basic wage guaranteed at national level is, excluding bonuses and other allowances, set at RON 3,000 per month, for a normal working schedule averaging 165.333 hours per month, i.e. 18.145 RON / hour.
For the construction sector, as of 1 January 2023, the minimum gross basic wage guaranteed at national level is, not including allowances, bonuses and other allowances, set at the amount of RON 4,000 per month, for a normal working schedule averaging 165.333 hours per month, representing an average of 24.194 RON / hour.
For the agri-food sector, the minimum wage remains RON 3,000 for 2023.
Starting from 1 January 2023, for income related to the months January-December 2023 inclusive, in the case of employees working on the basis of an individual labour contract, full-time, at the place where the basic function is located, no income tax is due and the amount of 200 RON / month, representing income from salaries and similar income, is not included in the monthly basis for calculating compulsory social contributions, if the following terms are cumulatively met:
- a) The level of the gross monthly basic wage established in accordance with the individual labour contract, excluding bonuses and other allowances, is equal to the level of the gross minimum wage guaranteed at national level established by Government Decision, in force in the month to which the income relates;
- b) Gross income from wages and salaries, as defined in art. 76 (1) – (3) of Law no. 227/2015, as amended, under the same individual labour contract, for the same month, does not exceed the level of RON 4,000 inclusive.
The condition laid down in para. (1) (a) shall not be deemed to be fulfilled if, in the period between the date of entry into force of this Emergency Ordinance and 31 December 2023, the level of the gross monthly basic wage established according to the individual labour contract is reduced, not including bonuses and other allowances.
The same applies to employees working in the agricultural sector and the food industry who do not benefit from the tax relief.
The amount of RON 200 provided for in para. (1) shall be reduced according to:
- a) The period of the month during which the basic monthly wage / pay from the individual labour contract or the employment relationship, as the case may be, is maintained at the level of the gross minimum wage guaranteed at national level as established by Government Decision;
- b) The date from which new employees are taken on at a level of the basic monthly wage / pay, if any, equal to the level of the gross minimum wage guaranteed at national level;
- c) The part of the month for which the income from wages and similar income is determined;
- d) The date from which the individual labour contract / employment relationship ends, as appropriate.
Other changes
The changes related to the setting of taxes on buildings and land are extended until 1 January 2025. This will maintain the same method of calculating local taxes in 2023 and 2024 as in 2022. The obligation to accept as means of payment debit, credit or prepaid cards, through a POS terminal and/or other modern acceptance solutions, including applications facilitating the acceptance of electronic payments, is introduced for legal entities engaged in retail and wholesale trade activities, as well as those engaged in the provision of services, which make cash receipts of more than RON 50,000 during a year.Contact
Simona Marilena STĂNCULESCU
Consultant fiscal, Expert contabil
SM ACCOUNTING & CONSULTANCY
+40 729 514 854
simona.stanculescu@smac.ro