On November 26, 2022, the draft law amending Government Regulation (OG) No. 16 was sent to the President for promulgation.
It should be recalled that the draft law was adopted by the Chamber of Deputies in its session of November 16, 2022, but was subsequently referred to the General Secretariat of the Government to exercise the right of referral on the constitutionality of the law.
The amendments adopted by the Chamber of Deputies (the decision-making authority) are explained below:
- one of the most important changes relates to the application of the EUR 500,000 limit to micro-enterprises from the income of 2023 and not on the basis of the factual situation as of 31.12.2022 (as provided for in the July version, when OG 16 was published);
- another measure provides for the removal of the restriction on the classification of income from tax consulting as a microenterprise. According to OG 16/2022, published in July 2022, an entity is subject to corporate income tax if it derives more than 20% of its revenue from consulting services. However, the proposed amendment introduces an exemption for income from tax consultancy corresponding to CAEN code 6920 – Accounting and auditing; tax consultancy;
- modification of the limit for the obligation to equip POS terminals from 2023. The limit will be calculated in lei – 50,000 lei instead of 10,000 euros – and will no longer be compared to turnover, but to cash receipts. In particular, legal entities engaged in retail and wholesale trade, as defined in OG No. 99/2000 on the marketing of market products and services, republished, with subsequent amendments and supplements, as well as those engaged in the provision of services and generating cash revenues worth more than 50,000 euros in the course of a year, are not subject to the limit, are obliged to accept debit, credit or prepaid cards as a means of payment, through a POS terminal and/or other modern acceptance solutions, including applications that facilitate the acceptance of electronic payments;
- another measure concerns local taxes, more precisely, after numerous debates in the public, especially related to the application of the notary grid in the valuation of buildings – we note that the application of OG 16 is extended until 2025. This means that for the year 2023 the same rules will apply as for the year 2022;
The provisions on taxation of income from participation in games of chance characteristic of casinos, poker clubs, slot machines and lotteries, the value of which exceeds the maximum non-taxable amount of 1,000 lei, are amended: The value is determined by applying the scale to all gross income of a participant, and the obtained result is reduced by an amount of 30 lei.
Pursuant to OG 16/2022, the tax on income from participation in games of chance characteristic of casinos, poker clubs, slot machines and lotteries, the value of which exceeds the maximum non-taxable amount of 66,750 lei, shall be determined by applying the scale provided for in paragraph (2) to all gross income of a participant and deducting from the result obtained the amount of 11,650 lei.
- the wording for the calculation of the CAS limit is clarified at the level of 12 gross minimum wages per country applicable at the expiry of the deadline for submitting the declaration under Article 120, in the case of income between 12 gross minimum wages per country inclusive and 24 gross minimum wages per country, and at the level of 24 gross minimum wages per country applicable at the expiry of the deadline for submitting the declaration under Article 120, in the case of income equivalent to at least 24 gross minimum wages per country
In the same way, the CASS limits are also clarified:
- a) the amount of 6 gross minimum wages per country, applicable at the time of the expiration of the period for filing the declaration provided for in Article 120, in the case of income between 6 gross minimum wages per country inclusive and 12 gross minimum wages per country;
- b) the amount of 12 gross minimum wages per country applicable at the time of the expiry of the period for filing the declaration provided for in Article 120, where the income earned is between 12 gross minimum wages per country inclusive and 24 gross minimum wages per country.
- c) the amount of the 24 gross minimum wages per country applicable at the time of the expiration of the period for filing the declaration provided for in Article 120, if the earnings are equal to or greater than 24 gross minimum wages per country.
- With respect to dividends, it is clarified that in the case of dividends distributed on the basis of interim financial statements prepared in 2022, the tax rate on dividends shall be 5%, without recalculation of the tax on such dividends after their adjustment on the basis of the financial statements for fiscal year 2022 approved in accordance with the Law.