Tax inspection carried out at the company having as its object of activity “Manufacture of metal structures and parts of metal structures”

S.C. X S.R.L., whose object of activity is “Manufacture of metal structures and component parts of metal structures”, CAEN code 2511.

Period audited: 01.01.2019 – 31.12.2021 – Tax on income from wages and salaries and related social contributions.

The main results  of the tax inspection authorities  were:

Following the verification of the fulfillment of the conditions set forth in art. 60 item 5 of Law no. 227/2015 on the Tax Code, as subsequently amended and supplemented, the tax inspection authorities  found the following:

According to the Articles of Incorporation of S.C. X S.R.L., the declared main activity is “Manufacture of metal structures and component parts of metal structures”, an activity falling under the CAEN code 2511, for which the respective facilities may be granted.

From the analysis of the activities of the audited company, i.e. from the analysis/verification of the contracts concluded with customers, invoices and documents attached to them, it was found that, in fact, the company’s activity consists in “production of components/parts/sub-assemblies for conveyors”, which, according to the classification of activities in the national economy, falls under the CAEN code 2822 “Manufacture of lifting and handling equipment”.

In accordance with the abovementioned related provisions, the activities falling under CAEN code 2822 are not considered to be activities in the construction sector.

Since the conditions for granting the tax facilities provided for by art. 60, item 5 of Law no. 227/2015 on the Tax Code, as amended and supplemented, are not met, the tax inspection authorities  found that the individuals, as employees of S.C. X S.R.L., could not benefit, for the period subject to tax inspection, from the reduction of the social insurance contribution rate by 3.75 percentage points, respectively from the exemption from the payment of the social health insurance contribution and from the exemption from the payment of the tax on income from wages and assimilated to wages.

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According to the legal provisions, S.C. X S.R.L., as an employer, had the legal obligation to calculate, withhold and transfer to the state budget the social and health insurance contributions, tax on income from salaries and assimilated to salaries.

Consequently, the tax inspection authorities  established additional tax liabilities in total amounts of x lei, representing:

  • x lei – Tax on income from wages and salaries;
  • x lei – Social contributions.

Source: ANAF