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Throughout the state of emergency, the allowances for technical unemployment and for childcare relating to periods when schools are closed are not subject to the tax incentives provided for under the Fiscal Code.
This means, for example, that the income tax exemption granted to persons with severe handicap, the income tax exemption specific to the construction, IT and research & development sectors is not applicable for the amounts received as unemployment and childcare allowances. In addition, exemptions from health insurance contributions and the reduction in pension insurance contributions are no longer granted to employees working in the construction sector, for the amounts received as unemployment and childcare allowances.
This applies to allowances paid out of the unemployment budget or the state budget as of April 2020.
Source: Emergency Ordinance no. 48/2020 published in the Official Gazette no. 319 on April 16th, 2020.
Last update: 4 May 2020
