In the Official Gazette (Part I) no. 607 of 3 July 2023 was published the Order of the Ministry of Finance (MF) no. 2044 amending and supplementing the Annex to MF Order no. 1528/2022 on the establishment of the procedure for granting tax relief in the field of construction.
We remind you that, according to the provisions of Law no. 227/2015 on the Tax Code, individuals who earn income from salaries and assimilated to salaries provided for in Article 76, paragraph (1) – (3), for the activity carried out in Romania, based on individual employment contract, until 31 December 2028 inclusive, in the construction sector, benefit from tax facilities if the conditions provided for in Article 60, paragraph 5 of the Tax Code are cumulatively met.
Please note that the document was promoted in the context of the legislative amendments and additions to the Tax Code by Government Order no. 16/2022 amending and supplementing Law no. 227/2015 on the Tax Code, repeal of some normative acts and other financial-fiscal measures approved with amendments and additions by Law 370/2022, which mainly concerned the following:
- granting tax facilities only to individuals who obtain income from salaries and assimilated salaries made on the basis of individual employment contracts concluded with employers who fall under the conditions provided for in Article 60, point 5 of the Tax Code, a provision that applies starting with income related to January 2023;
- modification of the limit representing the gross monthly income from salaries and assimilated salaries up to which the tax facilities are granted in the construction sector, namely from 30,000 lei monthly to 10,000 lei monthly, inclusive. For the part of the gross monthly income exceeding 10.000 lei the tax facilities do not apply;
- revision of the regulation on the granting of tax relief in the construction sector, as regards the condition relating to the calculation of turnover, in the sense that the reporting takes into account only information/data from the current year;
- modification of the way of determining the share of the turnover actually achieved from the construction activity in the total turnover, by referring in the case of both indicators to the activity carried out on the territory of Romania;
Moreover, the measures provided for by 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, were taken into account:
– starting from 1 January 2023, for the construction sector, the minimum gross basic salary per country guaranteed in payment is established in money, without including allowances, bonuses and other allowances, at the amount of 4,000 lei per month, for a normal working schedule of 165.333 hours per month, representing an average of 24.194 lei/hour;
– the gross monthly income from salaries and assimilated to salaries, made by individuals for whom the exemption applies is calculated at a gross salary for 8 hours of work/day of at least 4,000 lei per month.
At the same time, clarifications are made regarding the situations in which, although the gross salary is at least equal to the minimum gross basic salary in the country guaranteed in money, not including allowances, bonuses and other allowances, of at least 4,000 lei per month, the employee earns income from wages and salaries less than 4,000 lei per month.
For example, cases where the activity is carried out for a fraction of the month: the individual employment contract starts/ends during the month, the employee has benefited from unpaid leave, etc. Thus, in situations where the gross monthly income from salaries and assimilated salaries, made on the basis of an individual employment contract, is less than 4. 000 lei/month, it is stipulated that tax benefits are granted only if the condition is met that they are calculated on a gross salary at least equal to the basic gross minimum wage in the country guaranteed in money, not including allowances, bonuses and other allowances, of at least 4,000 lei per month, for an average work schedule of 165,333 hours per month.