We remind you that the Law no.135/2022 for the modification and completion of some normative acts (Official Gazette (MO) 489/17.05.2022), grants tax facilities (similar to those in construction) also for employees in the field of agriculture and food industry.
The amendments are applicable from 1 June. Thus, employees in agriculture and the food industry who receive a gross salary for 8 hours of work/day of at least 3,000 Ron gross/month will benefit from reduced payroll taxes.
Therefore, similar to the taxes of employees in the construction industry, the law brings the following exemptions:
- 10% income tax exemption;
- exemption from health contribution, at the rate of 10%;
- reduction of the pension contribution, from 25% to 21.25%, the 3.75% reduction being the fixed part that goes to the second pension pillar;
- reduction of the insurance contribution for work, from 2.25% to 0.3375%.
Even if the facility related to the CAM reduction is mentioned in the Law 135/2022 for the amendment of the Tax Code, it does not apply, because the facility applies in compliance with the provisions in the field of state aid, after the approval of the aid scheme, and so far, the aid scheme has not been approved.
Therefore, the reduction of the insurance contribution for labour is inapplicable in both the agri-food and construction sectors, as a state aid scheme is needed to support it.
Thus, the CAM for agriculture and the food industry is still 2.25% in the absence of a state aid scheme.
Also, in the Official Gazette (Part I) no.918 of 19 September 2022, new Instructions for the completion of form D112 approved by Joint Order no. 1667/2194/772/4079 of ANAF/CNPP/CNASS/ANOFM for the approval of the model, content, method of submission and management of the “Declaration on the obligations to pay social security contributions, income tax and nominal record of insured persons” were published.
According to the new instructions (applicable from August), the CAM can be completed in the following sections:
C.4. Insurance contribution for work
“Calculation basis” – is filled in with the amount representing the calculation basis of the insurance contribution for work, to which the insurance contribution for work due by the employer to the state budget is calculated.
“Rate” – the rate of the insurance contribution for labour, provided for in Article 220 3 paragraph (1) of the Tax Code.
“Amount” – is filled in with the amount of the insurance contribution for labour due in the reporting month, resulting from the application of the percentage provided for in Article 220 3 paragraph (1) of the Tax Code to the “Calculation basis”.
C.5. Insurance contribution for labour due by employers referred to in Article 60 point 5 of the Tax Code
“Calculation basis” – is filled in with the amount representing the calculation basis of the insurance contribution for work, to which the insurance contribution for work due by the employer to the state budget is calculated.
“Rate” – the rate of the insurance contribution for labour, provided for in Article 220(3)(2) of the Tax Code, is completed.
According to the provisions of Article 91 of the Government Emergency Ordinance no. 114/2018 on the establishment of some measures in the field of public investments and some fiscal-budgetary measures, modification and completion of some normative acts and extension of some deadlines, the application of the reduced rate is made in compliance with the provisions in the field of state aid.
“Amount” – is supplemented by the amount of the insurance contribution for labour due in the reporting month, resulting from the application of the percentage provided for in Article 220 3 paragraph (2) of the Tax Code on the “Calculation basis”.
C.6. Labour insurance contribution payable by employers in the agricultural sector and food industry, who meet the conditions set out in Article 60 point 7 of the Tax Code
“Calculation basis” – is filled in with the amount representing the calculation basis of the insurance contribution for work, to which the insurance contribution for work due by the employer to the state budget is calculated.
“Rate” – the rate of the insurance contribution for labour, provided for in Article 220(3)(3) of the Tax Code.
According to the provisions of Article VIII of the Government Ordinance no. 16/2022 for amending and supplementing the Law no. 227/2015 on the Fiscal Code, repealing some normative acts and other financial-fiscal measures, the reduction of the labour insurance contribution rate is applied only in compliance with the provisions of the State aid, after the approval of the aid scheme.
“Amount” – is completed with the amount of the insurance contribution for labour due in the reporting month, resulting from the application of the percentage provided for in Article 220 3 paragraph (3) of the Tax Code on the “Calculation basis.
According to article 220^3 paragraph (1)-(3) of Law no. 227/2015 on the Fiscal Code:
“(1) The rate of the insurance contribution for work is 2.25%.
(2) By exception to the provisions of paragraph (1), in the period from 1 January 2019 to 31 December 2028 inclusive, the rate of the labour insurance contribution is reduced to the rate that is paid to the Guarantee Fund for the payment of wage claims established under Law no. 200/2006 on the establishment and use of the Guarantee Fund for the payment of wage claims, as amended, in the case of employers who carry out activities in the construction sector and who meet the conditions set out in Article 6 point 5.
(3) The provisions of paragraph (2) shall also apply accordingly to employers engaged in activities in the agricultural sector and in the food industry who meet the conditions laid down in Article 60(7), up to and including 31 December 2028.”
Since the provisions of paragraph (2) and (3) do not apply, i.e. the rate is not reduced according to article 220^3 paragraph (3), the information on CAM in the agri-food sector is filled in under C.4. (480) – CAM (2.25%).
Legal basis:
– Law 135/2022 for the amendment and completion of some normative acts
– Fiscal Code (approved by Law no. 227/2015, published in MO no. 688 of 10.09.2015), with subsequent amendments and additions;
– Methodological rules for the application of the Fiscal Code (approved by GOVERNMENT DECISION (HG) no. 1/2016).