Situation: An ABC SRL company that has CAEN code 4210 (Construction works for residential and non-residential buildings) benefits from fiscal facilities according to art. 60 point. 5 letter b) of the Fiscal Code. In 2020, construction revenues were more than 80% of total revenues. In 2021, in February, construction revenues are 20% of the company’s total revenues.
Does the company benefit from fiscal facilities related to salaries for February 2021?
Solution:
As a general rule, for the application of fiscal facilities, the company must achieve the turnover from the activities mentioned in letter a) of art. 60 point 5 of the Fiscal Code within the limit of at least 80% of the total turnover.
According to art. 60 pt. 5 lett. b) of the Fiscal Code, for the commercial companies existing on January 1 of each year, which had a turnover from the activities in the field of constructions mentioned at lett. a) of art. 60 point 5 of the Fiscal Code, made cumulatively for the previous fiscal year of over 80% inclusive, fiscal facilities will be granted throughout the current year, and for companies existing on the same date that do not achieve this minimum turnover limit the principle of newly established companies will be applied.
We remind you that the turnover calculation mechanism was approved by the Order of the National Commission for Strategy and Forecast (CNSP) no. 239/2019 and clarifies the application of these provisions.
Thus, for the companies existing on January 1 of each year, it is considered as the basis of calculation, the turnover from the activities mentioned in lett. a) of art. 60 point 5 of the Fiscal Code, as well as the total turnover, achieved cumulatively for the previous fiscal year.
The company existing on January 1, 2021 proceeds as follows:
- a) calculates the ratio between the turnover actually achieved from the construction activity and the total turnover for the previous year 2020;
- b) in the situation where the percentage resulting from the calculation of the ratio from let. a) is of at least 80% of the total turnover, the fiscal facilities are granted during the current year 2021 in compliance with the condition provided in art. 60 point 5 letter. a) regarding the CANE codes from the Fiscal Code for the entire period of application of the fiscal facilities;
- c) in the situation where the percentage resulting from the calculation of the ratio from let. a) for the year 2020 it is up to 80% of the total turnover, it is proceeded to determine the indicators the turnover actually achieved from the construction activity and the total turnover, for the current year 2021, according to the principle of the newly established companies; in this case, the indicators of the turnover actually achieved from the construction activity and the total turnover, are calculated cumulatively from the beginning of 2021, until the month in which the exemption is applied, inclusive;
- d) in order to benefit from the fiscal facilities, in the case presented at let. c), the ratio between the turnover actually realized from the construction activity and the total turnover must be in a percentage of at least 80%.
Therefore, in the situation where the percentage resulting from the calculation of the ratio between the turnover actually achieved from the construction activity and the total turnover for 2020 is at least 80%, the fiscal facilities are granted during 2021, the result registered in February 2021 not producing effects regarding the facilities granted in 2021.
Legal basis:
– Fiscal Code (approved by Law no. 227/2015, published in the Official Gazette no. 688 of 10.09.2015), with subsequent amendments and completions;
– Methodological Norms for the application of the Fiscal Code (approved by HG no. 1/2016);
– CNSP Order 239/2019 for the approval of the methodology regarding the turnover calculation mechanism in accordance with OUG 43/2019.