In the Official Gazette no. 1202/18 December 2021 was published the Emergency Ordinance no. 130/2021 amending the Tax Code and other normative acts. Please find below the most important tax changes:
AMENDMENTS ON THE TAX CODE
I. Corporate income tax
- Extension of the measure to suspend the tax incentives related to early education, for the period 1st January 2022 to 31st December 2022.
During this period, the expenses for the operation of the nurseries / kindergartens under the administration of taxpayers are considered social expenses, subject to limited deductibility at the corporate income tax computation, within the limit of 5% applied to the value of the expenses with the salaries of the employees.
II. VAT
- A new provision is introduced, according to which, when delivering homes that have a usable area of maximum 120 sqm, excluding household annexes, whose value, including the land on which they are built, exceeds the amount of 450,000 lei, but does not exceed the amount of 700,000 lei (excluding VAT), the VAT rate will be 5%. The facility will only apply to one home purchased by an individual, separately or jointly with another individual / individuals.
The new provisions will apply from 1st January 2022.
The reduced rate of 5% VAT currently applicable to the delivery of homes with a maximum usable area of 120sqm, excluding household annexes, whose value, including the land on which they are built, does not exceed the amount of 450,000 lei, excluding VAT, purchased of individuals will remain applicable under the same conditions without being limited to a single purchase.
In order to verify the fulfillment of the conditions regarding the purchase 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, with a reduced VAT rate of 5%, ”The Register of homes acquisitions with the reduced VAT rate of 5%„ will be organized in electronic format. Public notaries have the obligation to consult, fill in and /or rectify the register.
- A reduced quota of 5% VAT for the supply of thermal energy in the cold season (between 1st November and 31st March) is introduced, intended for the following categories of consumers:
a. population;
b. public and private hospitals, public and private educational units, defined according to the law;
c. non-governmental organizations, as well as religious units, regulated by law;
d. public and private providers of social services provided in the Nomenclature of social services, approved according to the law;
The reduced VAT rate of 5% for the delivery of thermal energy will apply starting with 1st January 2022.
III. Income tax and mandatory social security contributions
- Extension of the measure to suspend the tax incentives related to early education, for the period 1st January 2022 to 31st December 2022;
- Increase of the non-taxable limit at 300 RON for gifts granted by employers to their employees on the occasion of Easter, Christmas, 8th March, 1st June;
- The gift vouchers are excluded from the category of income from other sources;
- Gift vouchers can no longer be granted to third parties, and the exemption from mandatory social contributions will apply only if they are granted on the occasions provided in art. 76, para. (4) lit. a) of the Tax Code (Christmas, Easter, etc.). If the gift vouchers are granted to employees on other occasions, they will be subject to mandatory social security contributions;
- The updates with the inflation index applied to the compensatory salaries established by court decisions are exempt from mandatory social security contributions;
- The monthly taxable income from pensions will be established by deducting from the pension income the non-taxable amount of RON 2,000 and, as the case may be, the social health insurance contribution (CASS) due;
- Income from pensions exceeding 4,000 lei/ month becomes subject to CASS;
- Individuals who obtain income from abroad from pensions for which the social health insurance contribution (CASS) is due in Romania will have the obligation to submit the Unique Declaration, within the terms provided by the law.
AMENDMENTS ON THE LAW no. 165/2018 ON GRANTING VALUE TICKETS
- Value tickets can only be issued electronically. Thus, value tickets issued on paper are waived;
- Gift vouchers can only be given to employees, for social expenses. Thus, they can no longer be granted to third parties (including third party`s employees).
AMENDMENTS ON THE LAW no. 241/2005 FOR PREVENTING AND COMBATING TAX EVASION
- A new article (article 6 ^ 1) is introduced, according to which it is a crime punishable by imprisonment from 1 to 5 years or by a fine, the withholding and non-payment, collection and non-payment, within maximum 60 days from the due date provided by law, of the taxes and / or contributions provided in the annex to the law (e.g. tax on income obtained from Romania by non-residents, social contributions, tax on income from salaries, dividends).
If during the prosecution or trial the damage caused is fully covered and its value does not exceed 100,000 euros, the penalty with a fine may be applied. If the damage caused and recovered under the same conditions is up to 50,000 euros, the penalty with a fine is applied.
Also, if the damage produced does not exceed 100,000 euros, and during the prosecution or during the trial until the issuing of a final court decision, the damage, increased with 20% of the calculation base, plus interest and penalties, is fully covered, the act is no longer punishable.
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