Fiscal-budgetary measures, the extension of some deadlines, and changes and additions to some normative acts: GEO no. 168/2022

The takeaway 

Government Emergency Ordinance no. 168/2022 (GEO no. 168/2022) introduced changes and additions to the Fiscal Code, the Labour Code, Law no. 263/2010 regarding the unitary system of public pensions, Government Ordinance no. 11/2022 and other normative acts.

We present the main changes below.

In detail

Fiscal Code

Early Education Facility

The facility for early education introduced by Law no. 239/2020 which allowed employers to deduct from the profit tax calculation, up to RON 1,500 per month/child, expenses for the early education of employees’ children − including the facility regarding the exclusion of the amounts paid from the calculation basis of income tax and social contributions by the employer for the early education of employees’ children − has been suspended for another year until 31 December 2023. During the period of suspension, expenses for the operation of nurseries and kindergartens under the administration of taxpayers are considered expenses with deductibility limited to 5% of the total staff salary expenses.

Income tax and social contributions

In the case of full-time employees who carry out activities based on individual employment contracts at the place where the basic function is located, no income tax is due and the amount of RON 200 is not included when calculating the mandatory monthly social contributions related to salary income and other income treated as such if the following conditions are all met:

• The level of the basic monthly gross salary established according to the individual employment contract, without including increments and other additions, is equal to the level of the national minimum gross salary in force (the condition is not considered fulfilled if the monthly gross basic salary is reduced between 9 December 2022 and 31 December 2023).
• The gross income from salaries and income treated as such, based on the same individual employment contract for the same month, does not exceed RON 4,000 per month.

The measure applies to incomes related to the months of January to December 2023, including for employees in the agricultural sector and the food industry who do not benefit from the fiscal facilities provided by the Fiscal Code, as well as salary income and income treated as such obtained on the basis of a service report, according to the law.

Starting with income related to the month of January 2023, for the application of the fiscal facilities in the construction sector, the monthly gross incomes from salaries and income treated as such by individuals who benefit from these facilities are calculated at a minimum gross salary of RON 4,000 per month for eight hours of work per day.

Profit tax and microenterprise revenue tax

In situations where, after submitting the profit tax or microenterprise revenue tax redirection form, the tax is less than stated and the taxpayers thus redirected an amount greater than was allowed for redirection, according to the law, the taxpayers owe the difference between the tax diverted and the correct amount. The procedure for determining and regularising that difference is established by order of the president of the National Agency for Fiscal Administration (ANAF).

Value added tax

The deadline for suspending the submission of informative declarations 392A, 392B and 393, which were introduced in the context of the need to calculate the VAT base for the European Union budget, has been extended to 31 December 2023. The measure was due to expire on 31 December 2022.

The mechanism for the centralised purchase of electricity will be established as of 1 January 2023. Through it, a single purchaser is designated that buys electricity from certain producers and sells that electricity at a single regulated price to electricity suppliers with contracts with end customers, electricity system transport operators and electricity distribution operators. A taxable person with the capacity of a sole purchaser within this mechanism is not currently the same a taxable person trader for the purpose of applying the reverse charge mechanism.

For this reason, as of 1 January 2023, the scope of the VAT simplification measure provided for in art. 331 para. (2) lit. e) of the Fiscal Code includes the trader as a taxable person with the capacity of sole purchaser within the mechanism for the centralised purchase of electricity.

Local taxes and fees

Exemption from the payment of building tax is granted for rooms with private sanitary units where no economic activity is carried out.

Labour Code

In the period 1 January 2023 — 31 December 2028, in the construction industry, the national minimum gross basic salary will be RON 4,000 per month (currently RON 3,000 per month), without allowances, increments and other additions, for a schedule of eight hours per day.

Law no. 263/2010 regarding the unitary system of public pensions

The amount of RON 200 per month for which, in certain situations, income tax and social contributions are not due between 1 January 2023 and 31 December 2023 will be used to calculate the monthly pension rate.

Government Ordinance no. 11/2022 for the modification and completion of some normative acts, as well as for the modification of some deadlines − art. IV

The term is extended until 31 December 2023, by which date economic operators which deliver goods or provide services through commercial machines accepting card payments, banknotes or coins acceptors will be required to equip their machines with electronic fiscal marking machines.

[Source: Government emergency ordinance no. 168/2022 regarding some fiscal-budgetary measures, the extension of some deadlines, as well as for the modification and completion of some normative acts, published in the Official Gazette no. 1186 dated 9 December 2022]