The procedure for granting fiscal facilities in the agricultural sector and in the food industry was approved by Order of the Ministry of Finance (MF) no. 1525, published in the Official Gazette (Part I) no. 661 of July 1, 2022.
According to article 1 of the Procedure, natural persons, for the income obtained from salaries and assimilated to salaries provided for in article 76 paragraph (1)-(3) of the Fiscal Code, for the activity carried out in Romania, until December 31, 2028 inclusive, in the agricultural sector and in the food industry, benefits from fiscal facilities if the conditions stipulated in article 60 point 7 of the Fiscal Code are met cumulatively, respectively:
a) employers who carry out activities in the agricultural sector and in the food industry on the territory of Romania defined by the following CAEN codes:
- CAEN code 01: Agriculture, hunting and related services
011 – Cultivation of non-permanent plants;
012 – Cultivation of plants from permanent crops;
013 – Cultivation of plants for propagation;
014 – Animal breeding;
015 – Activities in mixed farms (vegetable culture combined with animal husbandry);
016 – Agricultural auxiliary activities and post-harvest activities;
- CAEN code 10: Food industry;
- b) employers realize the turnover from the activities provided for in letter a) within the limit of at least 80% of the total turnover. The fiscal facilities for the agricultural sector and the food industry refer to:
- exemption from the payment of income tax, for income from salaries and incomes assimilated to salaries;
- the reduction by 3.75 percentage points of the social insurance contribution rate, for income from salaries and incomes assimilated to salaries;
- exemption from the payment of the social health insurance contribution, for income from wages and incomes assimilated to wages.
Article 4 of the Procedure approved by MF Order no. 1525/2022 indicates how to calculate the indicators Total turnover and Turnover actually achieved from the activity in the agricultural sector and in the food industry.
The total turnover achieved cumulatively since the beginning of the year, including the reporting month, is completed with the sum of the cumulative revenues from the beginning of the year until the end of the reporting month, achieved from the sale of products and the provisi
- shall be added, cumulatively from the beginning of the year up to and including the reporting month, the amounts representing:
– income from operating subsidies related to net turnover, registered in the accounts;
– monthly credit balances before transfer to the profit and loss account of income relating to the cost of goods and services in progress, registered in the accounts at the end of the reporting months in which the credit balance is registered ;
– income from the production of tangible fixed assets, registered in the accounts..
- shall be reduced, cumulatively from the beginning of the year up to and including the reporting month, by the amounts representing the monthly debit balances before the transfer to the profit and loss account of the income relating to the costs of stocks of goods and services in progress, registered in the accounts at the end of the reporting months in which the debit balance is registered
The turnover actually achieved from the activity in the agricultural sector and in the food industry is supplemented by the sum of the cumulative income from the beginning of the year to the end of the reporting month, obtained from the sale of products and the provision of services from the activities related to the CAEN codes provided for in Article 60 point 7 letter a) of the Fiscal Code, to which:
- shall be added, cumulatively from the beginning of the year up to and including the reporting month, the amounts representing:
– income from operating subsidies related to net turnover specific to the activity in the agricultural sector and the food industry, registered in the accounts;
– monthly credit balances before transfer to the profit and loss account of income relating to the cost of stocks of products and services in the course of completion, specific to the agricultural sector and the food industry, entered in the accounts at the end of the reporting months in which the credit balance is registered ;
– income from the production of tangible fixed assets for the purposes of agricultural and food industry activities, registered in the accounts;
- shall be reduced, cumulatively from the beginning of the year up to and including the reporting month, by the amounts representing the monthly debit balances before the transfer to the profit and loss account of the income relating to the costs of stocks of products and services in progress, specific to activities in the agricultural sector and the food industry, registered in the accounts at the end of the reporting months in which the debit balance is registered .
When determining the turnover actually achieved from the activity in the agricultural sector and in the food industry, for the determination of the income from the sale of products, the income from the sale of finished products, semi-finished products, waste products and goods, which are obtained from own production, is taken into account. Income from the sale of products purchased for resale is not taken into account.
When determining the indicators Total turnover and Turnover actually realised from the activity in the agricultural sector and in the food industry, the income registered in the accounts in compliance with the applicable accounting regulations is taken into account.
The total turnover and the turnover actually realised from agricultural and food industry activities do not include income from investment grants (relating to assets) entered in account 7584, nor income from operating grants (other than those relating to business capital) entered in the accounts:
7412 – Income from operating subsidies for raw materials and materials
7413 – Income from operating subsidies on other external charges
7414 – Revenue from operating subsidies on staff remuneration
7415 – Revenue from operating subsidies for insurance and social protection
7416 – Operating subsidy revenue for other operating expenditure
7417 – Revenue from operating subsidies for disasters and similar events
7418 – Income from operating subsidies for interest due
7419 – Income from operating subsidies related to other revenue
The subsidy income to be taken into account, both in determining the total turnover and the turnover actually achieved from activity in the agricultural sector and in the food industry, is the operating subsidy income related to turnover, registered in account 7411, as follows:
– for Total Turnover the operating subsidy income relating to total net turnover, registered in the accounts, is taken into account;
– for Turnover actually derived from activities in the agricultural sector and the food industry, the operating subsidy income relating to the specific net turnover from activities in the agricultural sector and the food industry registered in the accounts is taken into account
Legal basis:
-MF Order no.1525/2022 on the establishment of the procedure for granting fiscal facilities in the agricultural sector and in the food industry;
-Fiscal Code (approved by Law no.227/2015, published in MO no.688 of 10.09.2015), as amended and supplemented.