The present Law introduces a series of amendments and completions to the Fiscal Code which mainly target the following aspects:

    Employees  working  in  the  agricultural  field   and  the  food  industry  will  benefit  from  similar  tax exemptions applicable to the construction field, as mentioned below:

❖  Exemption from income tax;

❖  Exemption from the 10% social healthcare insurance contribution;

❖  Reduced contribution for pensions from 25% to 21,25%;

    The  above  mentioned  tax  exemptions  are  applicable  only  with  the  cumulative  fulfillment  of  the following conditions:

i. the employer carries out activities in the agricultural sector or in the food industry as defined by the 01 NACE code   – agriculture forestry and fishing (011- growing of non-perennial crops;

012- growing of perennial crops; 013- plant propagation; 014- animal production; 015- mixed farming;  si  016-  support  activities  to  agriculture  and  post-harvest  crop  activities  si  10  NACE code- Manufacture of food products and

ii. the  employer  achieves  a  turnover  from  agricultural  or  food  activities  of  at  least  80%  of  the total turnover and

iii. the  monthly  wage  for  8  hours  of  work  /  day  for  the  individual  (employee)  for  whom  the exemption is applied will be of minimum 3,000 lei. The tax facilities will not be applied for the part of the monthly wage that exceeds the value of 30,000 lei.

    Details  regarding  computation  of  the  turnover  for  the  purpose  of  applying  the  tax  facilities  are  also provided.

    The  tax  facilities  provided  by  this  law  are  applicable  starting  with  the  income  related  to  June  2022 until December 31, 2028.

    The procedure for applying the tax facilities will be established by Ministry of Finance Order, which will be published within 30 days from the publication of the law.

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For additional details regarding the above, you can contact any member of the Taxhouse team or you can send us an e-mail at office@taxhouse.ro.