In the Official Gazette (Part I) no.1186 of 9 December 2022 was published the Emergency Ordinance (OUG) no.168/2022 on some fiscal-budgetary measures, extension of some deadlines, as well as for the modification and completion of some normative acts.
The main provisions of OUG 168/2022:
v Amendments and additions to the Tax Code
- Corporation tax:
If, after submission of the redirection form, the corporate income tax due for the year for which the redirection was ordered is adjusted downwards, and the taxpayers have rerouted an amount greater than the amount that could be rerouted, according to the law, they owe the state budget the difference in corporate income tax that was rerouted in excess. The procedure for the determination and regularization of the difference in corporate income tax that has been redirected in excess of the amounts that may be redirected, according to the law, shall be established by order of the President of the A.N.A.F..
Income tax on micro-enterprises:
If, after the submission of the redirection form, the microenterprise income tax due for the year for which the redirection was ordered is adjusted downwards, and the taxpayers have rerouted an amount greater than the amount that could be rerouted, according to the law, they owe the state budget the difference in microenterprise income tax that was rerouted in excess.
The procedure for the determination and adjustment of the difference in income tax on microenterprises that has been redirected in excess of the amounts that may be redirected, according to the law, shall be established by order of the President of the A.N.A.F..
If the corporate income tax/income tax on microenterprises due for the year 2021 is adjusted in the sense of a decrease, the above provisions shall apply regardless of the date of the adjustment of these taxes.
- Income tax:
The provisions on income tax exemption in the construction sector are updated, corresponding to the new minimum wage of 4000 lei. Please note that the maximum limit of 10,000 lei inclusive for the minimum wage in this sector remains in force.
The provision will enter into force on 1 January 2023 and will apply from January 2023 income.
- VAT – additions to the application of reverse charge to the supply of electricity:
Reverse charge applies to the supply of electricity to a taxable trader established in Romania.
The taxable person trader is a taxable person whose main activity, in terms of electricity purchases, is the resale of electricity and whose own consumption of electricity is negligible. Negligible own consumption of electricity means a consumption of no more than 1% of the electricity purchased. A taxable person is considered to be a trader if the buyer holds a licence for the organisation and management of organised electricity markets, issued by the National Energy Regulatory Authority, for transactions on the day-ahead and intraday markets, as well as if the buyer is a single buyer within the centralised electricity purchase mechanism.
In addition, a taxable person is considered to be a trader if the electricity buyer fulfils the following cumulative conditions:……
The provision enters into force on 01.01.2023.
- EXCISE DUTIES -electronic administrative document:
During the journey under excise duty suspension, the sender can change the destination, through the computerized system, and can indicate a new destination, which must be one of the destinations provided for in article 401 paragraph (2) letter a) point 1, 2 or 3 or to paragraph (3), as the case may be, under the conditions stipulated by order of the president of the Romanian Customs Authority (the destination stipulated in article 401 paragraph 2 letter a point 5 is waived).
Change related to local taxes:
There is no tax/tax on buildings for the buildings of public health facilities (the buildings of private health facilities were excluded from the exemption), with the exception of rooms used for economic activities, as well as for buildings where family medicine offices operate, according to the law, with the exception of rooms used for activities other than family medicine;
Changes/completions to OG 16/2022:
The following accumulated monthly incomes do not represent taxable income in the sense of income tax, within the limit of the monthly limit of no more than 33% of the basic salary corresponding to the job held or of the monthly salary/monthly salary granted/granted according to the law. The order in which the income is included in the monthly limit of no more than 33% of the basic salary corresponding to the job held or of the monthly salary/monthly salary granted/granted according to the law is established by the employer. The provisions regarding social contributions are also duly completed (including the phrase “monthly salary/monthly salary granted/granted”). These provisions enter into force on January 1, 2023 and apply starting with the income related to January 2023.
v Non-taxable nature of the amount of 200 lei/month from salaries:
Starting from January 1, 2023, in the case of employees who carry out activity based on the individual employment contract, employed full-time, at the place where the basic function is located, no income tax is due and it is not included in the monthly calculation basis of mandatory social contributions amounting to 200 lei/month, representing income from wages and salaries, if the following conditions are cumulatively met:
- the level of the basic monthly gross salary established according to the individual employment contract, without including increments and other additions, is equal to the level of the minimum gross salary in the country guaranteed in payment established by Government decision, in force in the month to which the income is related;
- the gross income made from wages and wages, based on the same individual employment contract, for the same month, does not exceed the level of 4,000 lei inclusive.
Attention! The condition provided for in letter a) is not considered to be fulfilled if, in the period between the entry into force of this emergency ordinance and December 31, 2023, the level of the monthly gross basic salary established according to the individual employment contract is reduced, without including increments and other additions.
The provisions mentioned above apply under the same conditions and in the following cases:
a) employees who carry out activity in the agricultural sector and the food industry and do not benefit from the fiscal facilities provided by the Fiscal Code for this sector (income tax exemption and exemptions/reductions of social contributions)
b) income from wages and similar wages obtained on the basis of a service report, according to the law.
We mention that the amount of 200 lei is reduced depending on:
a) the period of the month in which the basic salary/monthly salary from the individual employment contract or the service report, as the case may be, are maintained at the level of the minimum gross salary for the country guaranteed in payment established by Government decision;
b) the date from which new employees are employed at a level of salary/monthly balance, as the case may be, equal to the level of the minimum gross salary for the country guaranteed in payment;
c) the fraction of the month for which the income from wages and salaries is determined;
d) the date from which the individual employment contract/service relationship ends, as the case may be.
In the case of part-time employees, for income related to the year 2023, the level of the gross minimum basic salary per country is reduced by the amount of 200 lei per month in the month in which the social contributions are calculated at the minimum salary.
The above provisions apply to income related to the months of January-December 2023 inclusive.
v The minimum wage in the construction sector:
Starting from January 1, 2023, for the construction sector, the gross minimum basic salary per country guaranteed in payment is set in money, without including allowances, increments and other additions, at the amount of 4,000 lei per month, for a normal work schedule an average of 165,333 hours per month, representing an average of 24,194 lei/hour.
In the period January 1, 2023-December 31, 2028, for the field of construction, the minimum gross basic salary per country guaranteed in payment will be at least 4,000 lei per month, not including allowances, increments and other additions, for a normal work schedule on average of 165,333 hours per month.
We underline the fact that the aforementioned provisions apply exclusively to the fields of activity provided for in article 60 paragraph 5 of the Fiscal Code:
- construction activity defined in CAEN code 41.42.43 – section F – Construction;
- the fields of production of construction materials, defined by the following CAEN codes:
2312 – Processing and shaping of flat glass;
2331 – Manufacture of ceramic tiles and slabs;
2332 – Manufacture of bricks, tiles and other construction products from fired clay;
2361 – Manufacture of concrete products for construction;
2362 – Manufacture of plaster products for construction;
2363 – Manufacture of concrete;
2364 – Manufacture of mortar;
2369 – Manufacture of other articles from concrete, cement and plaster;
2370 – Cutting, shaping and finishing of stone;
2223 – Manufacture of plastic articles for construction;
1623 – Manufacture of other carpentry and carpentry elements for construction;
2512 – Manufacture of metal doors and windows;
2511 – Manufacture of metal constructions and component parts of metal structures;
0811 – Extraction of ornamental stone and stone for construction, extraction of calcareous
stone, gypsum, chalk and slate;
0812 – Extraction of gravel and sand;
2351 – Manufacture of cement;
2352 – Manufacture of lime and plaster;
2399 – Manufacture of other products from non-metallic minerals n.e.c.;
We specify that non-compliance with the provisions related to the minimum wage in construction by companies constitutes a contravention and is sanctioned with a fine from 300 lei to 2,000 lei. The recalculation of contributions and tax is carried out in accordance with the provisions of the Fiscal Code. For the differences in fiscal obligations resulting from the recalculation of social contributions and income tax, interest and late penalties are charged according to the provisions of the Fiscal Procedure Code.
v Changes regarding cash registers – OG 11/2022:
Until December 31, 2023, economic operators who deliver goods or provide services through commercial machines that operate on the basis of card payments, as well as banknote or coin acceptors, as the case may be, have the obligation to equip the machines commercial with fiscal electronic marking machines. We mention that the previous provision of OG 11/2022 suspends this obligation until December 31, 2022.
v Suspension of some deadlines:
- The submission of informative declarations 392A, 392B and 393 is suspended starting from January 1, 2023 and until December 31, 2023 inclusive.
- It is suspended until December 31, 2023 inclusive, the application of the provisions regarding the possibility of deducting from the profit tax the expenses related to the operation of early education units under the administration of the taxpayer or the amounts paid by the taxpayer for placing the children of employees in early education units located in units that offers early education services.
- The application of the provisions regarding the non-taxability (in the sense of income tax and social security contributions) of the amounts paid by the employer for the early education of employees’ children is suspended until December 31, 2023 inclusive.
- During the suspension period provided for in point 2-3, the expenses for the proper functioning of nurseries and kindergartens under the administration of taxpayers are considered expenses with limited deductibility of the nature of those provided for in article 25 paragraph (3) letter b) of Law no. 227/2015 (expenses of a social nature and fall under the incidence of the 5% limit established for them, applied to the value of the expenses with staff salaries, according to the Labor Code.
Legal basis:
-OUG 168/2022 on some fiscal-budgetary measures, extension of some deadlines, as well as for the modification and completion of some normative acts;
-Fiscal Code (approved by Law no.227/2015, published in the Official Gazette no.688 of 10.09.2015), with subsequent amendments and additions.