The Emergency Ordinance no. 156/2024 | TaxFlash 117

In the Official Gazette, Part I, no. 1334 of December 31, 2024, was published the Emergency Ordinance no. 156/2024, regarding certain fiscal-budgetary measures in the field of public expenditure for the substantiation of the consolidated general budget for the year 2025, the amendment and completion of certain normative acts, as well as the extension of some deadlines.

The main fiscal changes introduced are as follows:

1. Tax on dividend income:

• For dividend income distributed after January 1, 2025, both to resident and non-resident individuals, the tax rate is increased from 8% to 10%.

The Ordinance also includes transitional rules, respectively:

• In the case of legal entities paying corporate income tax with a fiscal year different from the calendar year, for dividend distributions to other Romanian legal entities, the new tax rate will apply starting with the modified fiscal year that begins in 2025;
• In the case of dividends distributed based on interim financial statements prepared during 2024/the modified fiscal year starting in 2024, the dividend tax rate remains at 8%, without recalculating the tax on those dividends, after their regularization based on the annual financial statements for the financial year 2024/the modified fiscal year starting in 2024. This provision applies to all categories of beneficiaries.

2. Microenterprises income tax:

• Starting from January 1, 2025, the income threshold is reduced from 500,000 euros to 250,000 euros, including during the fiscal year. Starting from January 1, 2026, this threshold will be reduced to 100,000 euros. The income limit is verified based on the income achieved on December 31, 2024, respectively on December 31, 2025.
• From 2025, the condition of generating income, other than from consultancy and management, in proportion to over 80% of the total income, is repealed.
• For the application of the 3% tax rate, references have been introduced to the new updated CAEN codes starting January 1, 2025: 6210 - Software development services (client-oriented software), 6290 - Other IT services, 5611 - Restaurants, 5612 - Mobile food service activities, 5622 - Other catering services n.e.c. These activities were already subject to the 3% tax rate previously.

3. Income Tax and Social Contributions:

a. Tax incentives in the field of IT, construction, agriculture and the food industry

The tax incentives applicable to salary income and income assimilated to salaries as a result of carrying out activities of creating computer programs, as well as for persons working in the construction, agriculture and food industry fields are eliminated. This change applies starting with the salary income related to January 2025. Previously, employees in these fields benefited, under certain conditions, from an income tax exemption for a monthly gross salary income of maximum 10,000 lei as well as the possibility of not contributing to the second pension pillar (also up to a monthly gross salary income of maximum 10,000 lei).

b. Non-taxable ceiling of 300 lei for income from salaries and assimilated to salaries

The exemption from paying income tax and mandatory social contributions for the amount of 300 lei/month is maintained for employees who carry out activity based on an individual employment contract, employed full-time, at the place where their main function is located, if the following conditions are cumulatively met:

• the level of the monthly gross basic salary established according to the individual employment contract, without including bonuses and other additions, is equal to the level of the minimum gross salary per country guaranteed in payment established by Government decision, in force in the month to which the income relates (i.e. 4,050 lei/month starting with January 2025);
• the gross income derived from salaries and similar salaries, without including the value of meal vouchers, vacation vouchers, respectively food allowance, as the case may be, granted according to the law, based on the same individual employment contract, for the same month, does not exceed the level of 4,300 lei inclusive.

This facility applies to income related to the period January 2025 – December 2025.

4. Reintroduction of the Construction Tax:

• Starting from January 1, 2025, the tax on constructions listed in Group 1 of the Catalogue for the classification and normal operation durations of fixed assets is reintroduced. Taxpayers who are corporate income tax payers and have a fiscal year different from the calendar year owe this tax starting from the modified fiscal year beginning in 2025;
• The tax is calculated by applying a rate of 1% on the value of the constructions existing in the taxpayer's assets as of December 31 of the previous year, including when they are leased, managed/ concessioned, or in use, from which the value of the constructions subject to building tax is deducted;
• Taxpayers are required to calculate and declare the construction tax by May 25th inclusive of the year for which the tax is due. The tax is paid in two equal installments, by June 30th and by October 31st inclusive.