In the Official Gazette (Part I) no.36 of 12 January 2023, Law no.34/2023 was published to amend and supplement Law no. 227/2015 on the Tax Code.
The document refers to the tax regime of subscriptions offered by providers whose activities fall under CAEN codes 9311 (Activities of sports centres), 9312 (Activities of sports clubs) or 9313 (Activities of fitness centres), for:
– fitness (use of sports facilities for the practice of sport and physical education for maintenance, prophylactic or therapeutic purposes); or
– subscriptions including both medical services and the right to use sports facilities for the practice of sport and physical education for maintenance, prophylactic or therapeutic purposes.
It is important to note that the limit for which the tax regime below will apply is 400 euros per person per year.
Tax treatment of subscriptions:
- Limited deductible expenses, when determining income tax, for taxpayers who earn income from self-employed activities.
These provisions apply to amounts paid from the date of entry into force of Law no. 34/2023, i.e. from 15 January 2023.
Article 68: General rules for establishing the annual net income from self-employment, determined under the actual system, on the basis of accounting data:
“(5) The following expenses are deductible to a limited extent:
…………………………………………………..
- r) the cost of subscriptions for the use of sports facilities for the practice of sport and physical education for maintenance, prophylactic or therapeutic purposes offered by providers whose activities fall under CAEN codes 9311, 9312 or 9313, paid for the personal use of the taxpayer, regardless of whether the activity is carried out individually or in a form of association, and the cost of subscriptions, offered by the same provider acting in his own name or as an intermediary, which include both medical services and the right to use sports facilities, for the practice of sport and physical education for maintenance, prophylactic or therapeutic purposes, paid for the personal use of the taxpayer, regardless of whether the activity is carried out individually or in a form of association, up to the equivalent in RON of 400 euro per person per year. “
- 1. For employees, it does not represent taxable income within the meaning of income tax, up to a monthly limit of 33% of the basic salary corresponding to the job held.
According to the updated Tax Code, the following monthly accumulated income does not represent taxable income within the meaning of the income tax, within the limit of the monthly limit of not more than 33% of the basic salary corresponding to the job occupied or of the monthly salary/monthly wage granted/ granted according to the law:
a) additional benefits received by employees under the mobility clause;
b) the cost of food provided by the employer for its own employees. Food means food prepared in the employer’s own establishments or purchased from specialised establishments. The provisions do not apply to employees who receive meal vouchers in accordance with the legislation in force;
c) accommodation and the cost of rent for accommodation/living quarters made available by employers to their own employees, individuals who earn income from wages or equivalent to wages, as provided for in the employment contract or internal regulations, up to a non-taxable limit of 20% of the basic gross minimum wage per country guaranteed in payment/month/person, under certain conditions.
d) the cost of tourist and/or treatment services, including transport, during the holiday period, for their own employees and their family members
e) contributions to a voluntary pension fund, up to a maximum of EUR 400 per person per year;
f) voluntary health insurance premiums, as well as medical services provided in the form of subscriptions, paid by the employer for his own employees, so as not to exceed the equivalent in lei of 400 euro per person per year;
g) the amounts granted to employees who carry out teleworking activities for the support of expenses for utilities at the place where the employees carry out their activity, such as electricity, heating, water and data subscription, and the purchase of office furniture and equipment, within the limits established by the employer in the employment contract or internal regulations, up to a monthly limit of 400 lei corresponding to the number of days in the month in which the individual carries out teleworking activities.
- the cost of subscriptions for the use of sports facilities for the practice of sport and physical education for maintenance, prophylactic or therapeutic purposes offered by providers whose activities fall under CAEN codes 9311, 9312 or 9313, as well as the cost of subscriptions offered by the same provider acting in his own name or as an intermediary, which include both medical services and the right to use sports facilities for the practice of sport and physical education for maintenance, prophylactic or therapeutic purposes, paid by the employer for his own employees, up to the equivalent in RON of 400 euro per year per person.
- In the case of employees, for the purpose of determining the tax on income from wages and salaries, the value of the subscriptions mentioned above shall be deducted from gross income.
According to Article 78, the monthly tax is determined at the place where the basic function is located, by applying the rate of 10% on the calculation base determined as the difference between the net income from wages calculated by deducting from the gross income the compulsory social contributions for one month, due according to the law in Romania or in accordance with the international legal instruments to which Romania is a party, as well as, where applicable, the individual contribution to the state budget due according to the law, and the following:
– compulsory social contributions;
– personal deduction;
– union dues;
– voluntary pension contributions;
– voluntary health insurance premiums.
1. Please note that no social contributions (CAS, CASS or CAM) are due for the value of the subscriptions subject to the law, if, together with the other elements mentioned above, they are included within the monthly limit of not more than 33% of the basic salary corresponding to the job occupied.
2. The order of inclusion of the above-mentioned income in the monthly limit of not more than 33% of the basic salary corresponding to the job held shall be determined by the employer.
Please note that the provisions of point 2-4 apply from February 2023.
Thus, starting with the income for February 2023, gym memberships, if they fall within the two limit s (400 euros per year and 33% of the basic salary, cumulated with the other elements mentioned above), do not generate tax obligations for the employer.
Legal basis:
-Fiscal Code (approved by Law no.227/2015, published in the Official Gazette no.688 of 10.09.2015), as amended and supplemented;
-Methodological Norms for the application of the Tax Code (approved by Government Decision no.1/2016);
-Law 34/2023 for the amendment and completion of Law no. 227/2015 on the Tax Code.