Important tax news – OUG 130/2021 (1)

The Emergency Ordinance (OUG) no. 130/2021 regarding some fiscal-budgetary measures, the extension of some deadlines, as well as for the modification and completion of some normative acts was published in the Official Gazette no. 1202 of December 18, 2021.

Please note that the ordinance makes changes in several areas.

It is important to mention that, by OUG 130/2021, the lowering of the limit for employment as a micro-enterprise was not regulated. Initially (in the project) it was foreseen a decrease from 1,000,000 euros to 500,000 euros.

Among the most important, are:

1.                    Increasing the limit for gifts and non-taxable vouchers:

The value of gifts in cash and / or in kind is increased, including gift vouchers, which employers can offer and be non-taxable, from 150 lei to 300 lei.

The rest of the conditions remain unchanged.

  • In the case of gifts in cash and / or in kind, including gift vouchers, offered by employers, the income is non-taxable, as long as their value for each person, on each occasion, does not exceed 300 lei:
  • gifts given to employees, as well as those offered to their minor children, on the occasion of Easter, Christmas and similar holidays of other religious denominations; (ii) gifts given to employees on the occasion of March 8;
  • gifts given to employees for the benefit of their minor children on the occasion of June 1. (Article 76 (4) (a)

No social contributions are due for them.

These provisions come into force starting with the revenues related to January 2022.

2.                    Gift vouchers can no longer be given to third parties:

Securities in the form of gift vouchers granted on the basis of nominal records to other categories of beneficiaries are removed from the category of income from other sources according to the provisions of article 15 paragraph (2) of Law no.165 / 2018 on granting securities, with amendments and completions for marketing campaigns, market research, promotion on existing or new markets, for protocol, for advertising and publicity, other than those provided for in Article 76 (3) (h) and (4) (a) of the Fiscal Code .

This exclusion was made in conjunction with the change in the tax treatment applicable to gift vouchers granted to individuals by employers / payers, in order to eliminate the exemption from the payment of compulsory social contributions and include in their calculation the nominal value of gift vouchers granted by to employers / payers, according to the law, in the case of individuals who earn income from salaries or assimilated to salaries, in other situations than those granted on the occasion of Easter, June 1, Christmas and similar holidays of other religious denominations.

3.                    Application of CASS to pension income exceeding 4,000 lei:

The monthly taxable income from pensions is established by deducting from the pension income the monthly non-taxable amount of 2,000 lei and, as the case may be, the social health insurance contribution due according to the provisions of Title V – Compulsory social contributions.

Currently, the Fiscal Code provides for the possibility of deducting only the amount of 2,000 lei in the context in which pensions are exempt from the contribution to health. By OUG  130/2021, the health contribution is introduced for the pension income that exceeds 4,000 lei.

Also in pensions is eliminated the provision that the payer of pension income is obliged to determine the total value of the annual tax on pension income, for each taxpayer. This was found in Article 101 (11).

They are introduced in the category of income payers at CASS and the National House of Public Pensions, through the territorial pension houses, as well as the sectorial pension houses, for the persons who realize income from pensions and other entities that pay income from pensions.

Individuals who obtain from abroad income from pensions for which the social health insurance contribution is due have the obligation to submit the declaration provided for in Article 122 (Single Declaration), in compliance with the provisions of the applicable European legislation in the field of social security, as well as system agreements. of social security to which Romania is a party. applies starting with the income obtained in 2022.

It is entered in the list of incomes for which there is the obligation to declare the tax withheld at source and for the incomes from pensions.

The new Article 132 (2) is as follows:

Taxpayers with withholding tax are required to file a tax return and withholding tax return for each beneficiary of income with the competent tax authority until the last day of February, including the current year for the expired year, except for payers of income from salaries and assimilated to salaries, payers of income from pensions, payers of income from intellectual property rights, payers of income based on sports activity contracts, income from rent or from associations with legal entities, these having the obligation to submit the Declaration on obligations payment of social contributions, income tax and nominal records of insured persons.

Thus, it is established the obligation to submit the Declaration regarding the obligations to pay the social contributions, the income tax and the nominal record of the insured persons (D112) by the payers of such incomes.

At the same time, the obligation for taxpayers to submit the Informative Declaration regarding the withholding tax, income from gambling income and investment gains / losses on income beneficiaries (D205) has been eliminated.

4.                    Modifications on the basis of calculation of CAS:

The provision is introduced that the monthly basis for calculating social security contributions does not include the amounts representing interest and the update with the inflation index, established based on final and irrevocable court decisions / final and enforceable court decisions, including those granted according to the first decisions of courts, executors of law, or according to law, as the case may be, granted in connection with salaries, balances, pensions or other social insurance rights, including their differences.

5.                    Completion of categories exempted from payment of CASS:

The list of persons exempted from the CASS payment is completed: the natural persons who have the quality of pensioners, for the incomes from pensions up to the amount of 4,000 lei per month inclusive, as well as for the incomes realized from intellectual property rights.

6.                    VAT 5% for thermal energy:

The measure of 5% VAT for thermal energy will enter into force earlier, respectively from January 1, 2022. In addition, the scope will be extended by including, in addition to the population, other categories of consumers with a low degree of affordability.

At the same time, considering the budgetary impact of the introduction of the reduced VAT rate of 5% for the delivery of thermal energy, it is necessary to limit the application, only in the cold season, respectively for the period of 5 months between November 1 of this year and March 31 of the following year.

7.                    VAT 5% for dwellings under 140.000 euro:

According to the amendments to the Fiscal Code, individuals will be able to purchase with a reduced VAT rate of 5%, in addition to homes with a maximum value of 450,000 lei, excluding VAT, and a single home, individually or jointly with another individual / other natural persons, whose value exceeds the amount of 450,000 lei, but does not exceed the amount of 700,000 lei, representing the equivalent in lei of approximately 140,000 euros.

Thus, the application is limited to a single home purchased by a natural person, individually or jointly with another natural person / other natural persons.

We mention that a Register is introduced in which all the transactions with housing that benefit from a reduced quota are registered, regardless of the value.

Based on this register, the fulfillment of the condition regarding the acquisition with a reduced VAT rate of 5% of a single home whose value exceeds the amount of 450,000 lei, but does not exceed the amount of 700,000 lei, excluding VAT, is verified.

8.                    Suspension of early education grants up to 31.12.2022:

Application of the provisions of Article 25 paragraph (4) letters i1) and i2), Article 76 paragraph (4) letter x) and Article 142 letter z) of Law no. 227/2015, with subsequent amendments and completions, is suspended starting with January 1, 2022 and until December 31, 2022 inclusive.

Thus, at the end of this year, the suspension of the granting of the amount of 1,500 lei for the expenses with early education will expire and in this context the government has decided to extend the measure until December 31, 2022.

„Given that the regulated suspension period is nearing completion and the pre-suspension situation is maintained in the face of unresolved inadvertencies and gaps that do not allow application, taking into account the significant budgetary implications, and to give effective regulation and prevent damage Negatively of the state budget, it is necessary to temporarily remove this situation, quickly, by adopting the measure to extend the period of suspension of incidental regulations, for the period beginning on January 1 and ending on December 31, 2022 “, it is shown in the substantiation of the draft emergency ordinance.

We remind you that several legal loopholes have led to the need to suspend the provisions of Law no. 239/2021 regarding the fiscal incentive for expenditures on early education, through the provisions of Article II of the Government Emergency Ordinance no. 19/2021 regarding some fiscal measures, as well as for the modification and completion of some normative acts in the fiscal field, for the period April 1 – December 31, 2021.

9.                    Facilities for nursery or kindergarten are suspended in 2022:

The 1,500 lei facility for the nursery or kindergarten is still suspended (for the whole year 2022).

During the suspension period, in case of expenses for the operation of the nurseries / kindergartens under the administration of the taxpayers, the continuation of the applicable fiscal regime is established and during the suspension period regulated by the Government Emergency Ordinance no. 19/2021, respectively of social expenses deductible when calculating the fiscal result, within the limit of 5% applied on the value of the expenses with the salaries of the staff, according to Law no. 53/2003 – Labor Code.

It is extended until January 1, 2023 the date of entry into force of Law no. 154/2021 for the amendment and completion of the Government Ordinance no. 105/1999 on granting rights to persons persecuted by the regimes established in Romania starting from September 6, 1940 until March 6, 1945 for ethnic reasons.

  • The fine point remains capped at 145 lei in 2022.
  • Law no. 195/2020 on the status of railway staff enters into force in 2023 (extended).
  • The law on minimum inclusion income will be applied from September 1, 2023.
  • Special pensions for mayors will be suspended until January 1, 2023.
  • Re-incrimination of tax evasion:

According to OUG 130/2021, the deed of withholding and non-payment is re-incriminated, respectively the deed of collection and non-payment is incriminated, or, as the case may be, of non-withholding or non-collection, within 60 days from the due date provided by law, of taxes and / or withholding contributions.

Thus, in order to ensure the predictability of the incrimination norm, the categories of taxes and contributions subject to the withholding or collection regime and the payment or transfer were expressly provided, specifying the normative act and the articles that regulate them.

We mention that the limits of the punishment provided are imprisonment from 1 year to 5 years.

The measure will apply on March 1, 2022.

Tickets will be issued only on an electronic basis:

Valuable tickets (holiday vouchers, social vouchers for educational support and social vouchers for hot meals) will be issued exclusively electronically.

Basically, the provisions regarding the issuance of securities on paper are repealed.

We specify that the securities on paper, issued until January 31, 2022, remain valid until the expiration of the validity date written on them.

According to the legal regulations, starting with February 1, 2022, the authorizations to operate as units issuing securities on paper lose their validity, and these units will remain responsible both to the units that accept securities and to the employers with whom they have concluded contracts, thus ensuring the observance of all the obligations deriving from the concluded contracts in the case of paper securities on the expiration date.

10.                e-Invoice also for products with high fiscal risk:

OUG 130/2021 provides for the establishment of urgent measures to strengthen the capacity to track and collect amounts due to the state budget for deliveries of products with high fiscal risk, by sending invoices in the RO e-Invoice system, by derogation from the provisions of Government Emergency Ordinance no.120 / 2021.

Thus, the suppliers can, between April 1 and June 30, 2022, send the invoices issued in the national system regarding the electronic invoice RO e-Invoice, regardless of whether or not the recipients are registered in the Register RO e-Invoice.

The suppliers are obliged, starting with July 1, 2022, to send the invoices issued in the national system regarding the electronic invoice RO e-Invoice, regardless of whether or not the recipients are registered in the Register RO e-Invoice.

The ANAF order must be issued within 30 days from the publication of the ordinance in the Official Gazette.

Public sector salaries are frozen at the current level, with two exceptions:

– Salaries for teaching staff, auxiliary teaching staff, management teaching staff and educational guidance and control staff. Thus, starting with January 1, 2022, the basic salaries are increased by 1/4 of the difference between the basic salary provided by the Framework Law no. 153/2017, with subsequent amendments and completions for the year 2022 and those of December 2021.

– For the personnel occupying the functions provided in annex no. II “Occupational family of budgetary functions” Health and social assistance “, starting with January 1, 2022, the basic salaries are increased by 1/4 of the difference between the basic salary for 2022 and the one from December 2021.

11.                 Maintaining, in 2022, the amount of bonuses, allowances, compensations, bonuses and other elements of the salary system that are part, according to the law, of the gross monthly salary at most at the level of the amount granted for December 2021, insofar as the staff holds the same position and carries out their activity under the same conditions.

  • Maintaining, in 2022, the amount of the food allowance at the level established for 2021.
  • The extra work of public servants will be compensated only with appropriate free time:

Exceptions are the military personnel, the police, the penitentiary police and the civilian personnel from the public institutions of defense, public order and national security that carry out activity on the days of weekly rest, of legal holidays. For them, the rights provided by the legislation in force in June 2017 are granted, thus ensuring a continuation of the measures adopted in this regard starting with 2014.

These rights are to be granted within the limit of 3% of the sum of function balances / function salaries, grade balances / salaries of the professional grade held, graduations and order balances / order salaries, at the level of chief credit officer.

In the case of penitentiary police, the limit of 3% is established at the level of the centralized budget of the National Administration of Penitentiaries.

As an exception, during the state of alert established by Government decisions, the specialized personnel within the public health directorates may benefit from the payment of overtime.

12.                Minimum wage for 24 months:

The minimum gross basic salary in the country guaranteed in payment can be applied for an employee for a maximum period of 24 months from the moment of concluding the individual employment contract.

After the expiration of the respective period, during which the employee will be qualified or not, he will be employed with a basic salary higher than the minimum gross basic salary in the country guaranteed in payment.

The above provisions also apply to the employee with the minimum gross basic salary in the country guaranteed in payment, who has already concluded an individual employment contract with a duration of over 24 months.

Legal basis:

– OUG no. 130/2021 regarding some fiscal-budgetary measures, the extension of some terms, as well as for the modification and completion of some normative acts.