The  Ordinance  introduces  a  series  of  important  amendments  and   additions  concerning  aspects  such  as personal  income  tax  and  social  security  contributions,  VAT,  as  well  as  other  relevant  aspects  from  a  tax standpoint

Amendments regarding personal income tax and mandatory social contributions

    The  non-taxable  threshold  applicable  for  gifts  granted  in  cash  and/or  in  kind,  including  gift  vouchers, granted  by  employers  to  employees  (for  each  person,  on  each  occasion  expressly  provided  by  the  Fiscal Code) is increased from RON 150 to RON 300.

    The  nominal  value  of  gift  vouchers  granted  by  employers  to  their  employees,  according  to  the  law, is  included  in  the  monthly  computation  base  for  mandatory  social  contributions  purposes  (with  the exceptions and limitations provided by the Fiscal Code).

    Tickets   under   the   form   of   gift   vouchers   granted   by   payers   to   other   categories   of   beneficiaries (for marketing campaigns, market studies, promotion on new or existing markets, protocol, advertisement and publicity purposes) are removed from the category of income from other sources.

    Pension income (including derived from abroad) is included in the monthly health contribution computation base, for the part exceeding the monthly amount of RON 4,000 RON.

These provisions apply starting with the income related to January 2022.

Amendments regarding VAT

    Starting with 1st  of January 2022, the 5% reduced VAT rate also applies to:

    the  supply  of  buildings  having  a  surface  of  maximum  120  sqm,  excluding  household  annexes,  whose value, including that of the land they are built on, exceeds RON 450,000, but is less than RON 700,000, exclusive  of  VAT,  purchased  by  individuals  either  independently  or  with  another/  another  person(s) (the  reduced  VAT  rate  is  limited  to  the  purchase  of  one  building).  Notaries  public  will  have  the obligation  to  check  the  fulfilment  of  the  conditions  imposed  by  the  law  and  to  review,  fill-in  and amend the relevant data in the “Register of reduced 5% VAT rated building purchases”.

    the supply of thermal energy during the cold season (starting from 1st   of November current year until 31st of   March   of   the   following   year),   to   the   general   population,   public   and   private   hospitals, non-governmental  organizations  and  cult  units,  as well  as  to  suppliers  accredited  for  social  services, both public or private.

Other amendments relevant from a tax standpoint

    Starting with 1st   of January  2022, gift vouchers can  be granted solely to own employees,  their granting to other  categories  of  beneficiaries  being  thus  forbidden.  In  other  words,  gift  vouchers  can  no  longer  be granted  to  other  categories  of  beneficiaries  for  the  purpose  of  marketing  campaigns,  market  studies, promotion on new or existing markets, protocol or advertisement and publicity purposes.

    The  provisions  regarding  claiming  a  tax  credit  for  corporate  income  tax  purposes  for  expenses  incurred with early education (limited to an amount of RON 1,500 per month for each child), as well as those related to the non-taxation for personal income tax and mandatory social contributions  purposes of the amounts paid  by  the  employer  in  respect  of  the  early  education  of  its  employees’  children  are  suspended  starting with  1st    of  January  2022  until  31st   of  December  2022  inclusive.  During  this  period,  expenses  incurred  in relation  to  the  well-functioning  of  nurseries  and  kindergartens  under  the  administration  of  the  taxpayer are considered expenses with limited deductibility in the category of social expenses.

    Starting with 1st   of March 2022, the withholding and non-payment, the collection  and non-payment, within a maximum of 60 days as of the legal deadline provided by the law, of taxes and/or contributions provided in  annex  to  Law  no.  241/2005  (e.g.,  dividend  tax,  salary  income  tax  and  mandatory  social  contributions, tax on income from other sources, withholding tax on income derived from Romania by non-residents, etc.) are regarded as crimes and are sanctioned with jail from 1 to 5 years or with a fine, as the case may be.

    New  measures  are  introduced  regarding  the  use,  by  suppliers,  of  the  national  system  regarding  the electronic  invoice  RO  e-Invoice  for  B2B  high  tax  risk  supplies  of  goods  (to  be  established  by  Order  of  the President of NAFA), (i) by optional, between 1st   of April – 30th   of June 2022 and (ii) mandatory, starting with 1st  of July 2022.

    The deadline of 31st  January 2022 is replaced with 30th  June 2022 in respect of the following:

    art.  II  and  III  of  Government  Ordinance  no.  11/2021  for  the  amendment  and  completion  of  Law no. 207/2015 regarding the Fiscal Procedure Code, as well as for regulation of certain fiscal measures;

    art.  IX  of  Emergency  Ordinance  no.  19/2021  regarding  certain  fiscal  measures,  as  well  as  for  the amendment and completion of certain normative acts in the tax field;

    art.  VIII  para.  (4),  art.  IX  lit.  d),  art.  XIII  para.  (5)  lit.  c),  art.  XIII  para.  (7)  lit.  b),  art.  XIV,  art.  XVI  and art.   XIX   of   Emergency   Ordinance   no.   69/2020   for   the   amendment   and   completion   of   Law no. 227/2015 on the Fiscal Code, as well as for the provision of fiscal measures.

    The minimum gross wage per country guaranteed in payment may be granted to an employee for a period of maximum 24 months from the moment the individual employment agreement is concluded, while, after the  termination  of  the  respective  period,  during  which  the  employee  will  be  regarded  as  qualified  or  not, such  employee  shall  be  granted  a  wage  higher  than  the  minimum  gross  wage  per  country  guaranteed  in payment.

Law no. 301/2021 for the approval of Emergency Ordinance no. 8/2021 on the amendment and completion of

Law 227/2015 regarding the Fiscal Code

(Official Gazette no. 1195 of 17 December 2021)

    Clarifications are brought regarding the manner in which the corporate income tax due by the fiscal group is computed during the period when Emergency Ordinance no. 153/2020 applies, as well as in cases where the  tax  exemption  for  reinvested  profit  is  applicable,  at  the  level  of  the  appointed  legal  person  and  of the members of the fiscal group.

    The  computation  of  income  tax  due  for  the  transfer  of  real  estate  from  the  individual  patrimony  is regulated  for  cases  where  the  value  declared  by  the  parties  in  the  document  via  which  ownership  is transferred is lower than the minimum value established by the market study conducted by the chambers of notaries public, with expert authorized  valuators, in the sense that the tax is computed by reference to the value established by the market study.

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