Legal & Tax Alerts

New legislative amendments in the fiscal area

Within the Romanian Official Gazette no. 1202 dated December 18, 2021, was published the Government Emergency Ordinance no. 130/2021 regarding certain fiscal-budgetary measures, extension of terms, as well as for amending and completing normative acts (“GEO no. 130/2021”). GEO no. 130/2021 entered into force on 18 December 2021.

The amendments brought by GEO no. 130/2021 concern, among others, the following aspects:

1. Cash and/or in-kind gifts, including gift vouchers granted by employers

The non-taxable threshold and not subject to mandatory social contributions in case of gifts granted by employers to employees and their minor children on the occasion of Easter, Christmas and similar holidays, the gifts granted to employees of the occasion of 8 March, as well as the gifts granted for the benefit of minor children of the employees on the occasion of 1 June, it increases from RON/person 150 to RON/person 300.

The nominal value of the gift vouchers, granted to employees with other destinations and within other limits than those mentioned at the above item, is included in the computation basis of income tax and mandatory social contributions.

Gift vouchers can only be granted by the employers to their own employees, being forbidden to grant them to other categories of beneficiaries.

2. Reduced VAT rate of 5% for the supply of housing and heat

For the purchase by a natural person (individually or jointly) of a single dwelling with a useful surface area of up to 120 sq.m., the value of which, including the land on which it is built, is in the range of RON 450,000 – RON 700,000 (excluding VAT), a reduced VAT rate of 5% will apply from 1 January 2022. As a result, an electronic “Register of housing purchases with a reduced VAT rate of 5%” will be set up. In this Register, public notaries will enter the above-mentioned housing purchases authenticated as from 1 January 2022 and will be required to check that the conditions laid down by law are met.

The same VAT rate will also apply, from 1 January 2022, to supplies of heat during the cold season (i.e., 1 November – 31 March) to certain categories of consumers (e.g., the general public, hospitals, educational establishments, non-governmental organizations, religious establishments, social service providers).

3. Extension of the term of suspension of the tax facilities granted for the expenses of early education

Until 31 December 2022, the Government extended the measure of suspension of the tax facilities granted for the expenses incurred by the taxpayer for placing the children of employees in early education units, consisting in exempting the application of the specific provisions of social contributions and income tax taxpayer, as well as the deductibility of these expenses from the calculation of the profit tax.

4. Extension by 6 months of the period in which it can be applied for fiscal amnesties regarding the cancellation of certain ancillary obligations

Prior to the entry into force of GEO no. 130/2021, taxpayers who wanted to benefit from the cancellation of ancillary tax obligations related to the main tax obligations with maturities prior to March 31, 2020, had the opportunity to access this tax facility, until January 31, 2022.

Through GEO no. 130/2021, the new term for submitting the request for cancellation of the ancillary obligations was extended until June 30, 2022.

5. Re-incrimination of several modalities of the tax evasion criminal offence 

Starting with 1 March 2022, it will constitute a criminal offence, withholding and non-payment, collection and non-payment, within 60 days from the due date provided by law, of the taxes and/or social contributions/other contributions. Committing this criminal offence is punishable by imprisonment from 1 year to 5 years or a fine.

At the same time, cases of reduction of punishment and unpunishment have been inserted, which will be applied in the case of this criminal offence as well.

Cookie Settings