Amendment of the Fiscal Code

We present below the most important amendments to the Fiscal Code:

Corporate income tax

• The application of tax facilities in the area of corporate tax for early education is suspended until 31 December 2023 inclusive.
• During the suspension period, expenses for the proper functioning of nurseries and kindergartens run by taxpayers are deducted up to the 5% limit applicable to social expenses.
• If, after the submission of the form for the redirection of corporate income tax for sponsorships, the amount of corporate income tax due for that year is adjusted downwards and the amount available for redirection is higher than the amount that could have been redirected, the taxpayer owes the difference of the corporate income tax due to the state budget. 

Microenterprise tax 

• Clarifications on the additional amounts redirected for sponsorship also apply in the area of micro-enterprise tax.

 Salary-related taxes and social contributions 

• The deferral of tax incentives for early education is also extended to income tax and social security contributions.
• During 2023, a fixed amount of 200 lei/month of income from salaries and assimilated to salaries received by employees working on the basis of a full-time individual employment contract, at the place where the basic function is located, represents non-taxable income for the calculation of income tax and mandatory social contributions, if the following conditions are met cumulatively:
  1. the level of the gross monthly basic salary established in accordance with the individual employment contract, excluding bonuses and other allowances, shall be equal to the level of the gross minimum wage per country guaranteed in payment established by Government decision, in force in the month to which the income relates
  2. the gross income from wages and salaries under the same individual employment contract for the same month does not exceed RON 4,000 inclusive.
• The condition laid down under point a. shall not be deemed to be fulfilled if, between 9 December 2022 and 31 December 2023, the gross monthly basic salary established in accordance with the individual employment contract is reduced.
• The tax measure also extends to employees in the agricultural and food industry sectors who do not benefit from the tax incentives available to these categories. The measure may also be applied to income from wages and salaries and similar income obtained on the basis of a service relationship.
• The tax measure applies to income incurred during January – December 2023.

VAT 

• The deadline for suspending the submission of notifications 392A, 392B, and 393 is extended until 31 December 2023.
• From 1 January 2023, the VAT simplification measures are also extended to the taxable trader who becomes a single buyer under the mechanism for the centralised purchase of electricity.

Source: Emergency Ordinance No 168/2022 issued by the Romanian Government on several fiscal-budgetary measures, extension of some deadlines, as well as for the amendment and completion of some normative acts, as published on 8 December 2022