Situation:
Situation: A company ABC SRL provides engineering services in the field of construction for companies in Italy. All activities are carried out in Romania at the company’s workplaces.
In this situation, can the company grant the tax facilities in the field of construction according to OMFP 1528/2022?
Solution: According to art.2 of OMFP 1528/2022 on the establishment of the procedure for granting tax facilities in the construction sector, tax facilities are granted for the activity carried out in Romania, including to individuals seconded on the territory of Romania, if the income payer to whom they are seconded carries out activities in the construction sector and fulfils the conditions provided for in art. 60 pct. 5 of the Tax Code. Tax facilities are not granted to individuals who are seconded outside Romania
According to art.6 of OMFP 1528/2022, the calculation of the indicator Turnover actually achieved from the construction activity is made for the entire activity carried out by the employer on the territory of Romania from the activities provided for in art. 60 point 5 of the Fiscal Code, including from the branches, subsidiaries or working points in Romania of the employer.
In order to determine the percentage of 80% of the total turnover, when calculating the turnover actually achieved from the construction activity, employers shall take into account only the income from the activity carried out on the territory of Romania. Revenues from construction activity outside the territory of Romania will be taken into account only for the calculation of the total turnover from the whole activity.
The activity carried out on the territory of Romania, in the meaning of this procedure, means the activity effectively carried out in Romania in the field of construction, for the purpose of producing products and providing services, regardless of the residence status of the beneficiaries.
Thus, the Procedure establishes that for the determination of the 80% share of the turnover actually achieved from the construction activity, companies shall take into account only the income from the activity carried out on the territory of Romania and defines the activity carried out on the territory of Romania as the activity actually carried out in Romania.
Therefore, in the mentioned case, this condition is fulfilled, so the company can apply the tax facilities in the field of construction.
Legal basis:
– MF Order no.1528/2022 on the establishment of the procedure for granting tax facilities in the field of construction.