Tax Alert – May 2022
Law no. 135/2022 for modification and completion of some normative acts
In the Official Gazette no. 489 from May 17th 2022 the Law 135/2022 was published which entered into force on May 20th 2022. The most important modifications are the following:
- For the period June 1st, 2022 – December 31st, 2028 a new series of tax facilities are introduced for the incomes from salaries and assimilated to salaries, obtained from activities carried out in Romania, in the agriculture domain and food industry.
- Similar to those from the construction domain, in order to benefit from the tax facilities, the employers have to cumulatively meet some conditions:
- To develop activities in the agriculture and food industry domains, defined by the following NACE codes:
- NACE code 01: agriculture, hunting and ancillary services
- 011 – Cultivation of non-perennial plants;
- 012 – Cultivation of plants from perennial cultures;
- 013 – Cultivation of plants for breeding;
- 014 – Animals/livestock breeding;
- 015 – Activities in mixed farms (vegetal culture combined with animals’ breeding);
- 016 – Agricultural auxiliaries and post-harvest activities.
- NACE code 10: Food industry
- to achieve at least 80% of the turnover from the activities related to the CANE codes mentioned above
- to grant the gross minimum salary in the amount of RON 3,000 for 8h of work/day. The exemption will be applied for a monthly gross salary of a maximum of 30,000 lei, the part which exceeds this threshold will not benefit of fiscal facilities;
The tax facilities applicable to income from salaries and assimilated to salaries obtained from activities carried out in the agriculture and food industry sectors are the following:
- exemption from personal income tax;
- diminish of the social security contribution rate with 3.75%, the applicable rate in this sector being 21.25%. However, the employees may writhingly choose to pay the quote of 3.75% due to the privately administered pension fund, the employer withholding it;
- exemption from the payment of health insurance contribution;
- diminish of the work insurance contribution’ rate to 0.27 %, which is the level of the payable quota which represents income to the Guarantee Fund for the payment of salary claims.
The tax facilities are applied according to the procedure approved by order of the Ministry of Finance which, at the time of writing, has not been published.
This law also brings an important amendment to the Labor Code. Thus, the minimum gross basic salary guaranteed in payment for employees in the agriculture and food industry sectors is established at a minimum of RON 3,000 per month, without including indemnities, bonuses and other allowances, for a normal working program, meaning, on average, 167.333 hours per month, representing RON 17.928/hour. The new gross minimum basic salary guaranteed in payment will be applicable in the period June1st, 2022 to December 31st, 2028.
The above-mentioned provisions are to be applied starting with the salary income related to June 2022.
Emergency Ordinance no. 67 from May 18th 2022 regarding some fiscal measures, as well as for modification and completion of article 59 from Law no. 207/2015 regarding the Tax Code
In the Official Gazette no. 494 from May 18th 2022 it was published the Emergency Ordinance no. 67 from May 18th, 2022 regarding some fiscal measures, as well as for modification and completion of article 59 from Law no. 207/2015 regarding the Tax Code.
- By EO 67/2022, there were introduced some provisions regarding the exemption from the payment of the personal income tax and mandatory social contributions for the amount of RON 200, granted during the period of June 1st- December 31st 2022, in the following situations:
- the employer voluntarily increases the level of the gross monthly basic salary with the amount of RON 200, respectively from RON 2,550 up to RON 2,750 for the existent employees or
- the employer grants the new-hired individuals a minimum salary in amount of RON 2,750, without bonuses and increases.
- The amount exempted from the payment of the personal income tax will not be taken in consideration when applying the computation of personal deduction.
- If the employee works partially or resigns, the amount of RON 200 will be diminished. accordingly. The same procedure will be applied to the new hired, depending on the day they are employed.
- These modifications are not to be applied to the public sector’ employees.