Recently, in the Official Gazette was published the Law no. 135/2022 for the amendment and completion of some normative acts.
This law provides amendments applicable starting with 1 June. Thus, the employees in agriculture and food industry receiving a gross salary income for 8 working hours/day of at least Ron 3,000 gross / month will benefit from reduced salary taxes.
Thus, similar to the taxes of construction workers, the law provides for the following exemptions:
- 10% income tax exemption;
- 10% exemption from the health fund contribution;
- reduction of the pension contribution, from 25% to 21.25%, the reduction of 3.75% being fixed the part that goes to the second pillar of the pension;
- reduction of the work insurance contribution, from 2.25% to 0.3375%.
The beneficiaries of the above provisions are the employees of the employers which cumulatively fulfil the following conditions:
a) employers carries out on the Romanian territory activities in the agricultural sector and in the food industry defined as follows:
- NACE code 01: agriculture, hunting and related services:
- 011 cultivation of non-perennial plants;
- 012 cultivation of plants from permanent crops;
- 013 cultivation of plants for propagation;
- 014 animal husbandry;
- 015 activities on mixed farms (vegetable cultivation combined with animal husbandry);
- 016 auxiliary activities to agriculture and post-harvest activities;
- NACE code 10: food industry
b) the employers achieve a turnover from the activities referred to in letter. (a) of at least 80% of their total turnover. For newly established employers, i.e. employers registered with the trade register / registered for tax purposes from June 2022 onwards, turnover shall be calculated cumulatively from the date of registration, including the month in which the exemption applies, and for existing employers on 1 June 2022, turnover shall be calculated cumulatively from the beginning of the year, i.e. cumulatively from the date of registration in the case of employers established / registered between the beginning of the year and 1 June 2022, including the month in which the exemption applies.
For employers existing on 1 January of each year after 1 June 2022, turnover from the activities mentioned in letter. (a) shall be calculated cumulatively for the corresponding period of the current year, including the month in which the exemption applies. Turnover will include the realized and unbilled production.
c) the gross monthly income from salary and assimilated salary income provided in art. 76 para. (1) - (3), obtained by the individuals for whom the exemption is applied, are calculated on a gross salary for 8 hours of work / day of at least Ron 3,000 per month;
The exemption applies to amounts of gross monthly income obtained by the individuals up to Ron 30,000, obtained from salary and assimilated salary income provided in art. 76 para. (1) - (3). The part of the gross monthly income exceeding Ron 30,000 will not benefit from tax facilities;
d) the exemption shall be applied according to the procedure approved by order of the Minister of Finance.
This law is one of the measures provided in the "Support for Romania" package.
For more details, please see the Official Gazette no. 489 of 17 May 2022
The EY Team is available for further information on the above.
Prepared by:
- Ecaterina Boca - Senior Consultant, Knowledge Management Department
For additional information, please contact:
- Alex Milcev – Tax & Law Leader Romania & Moldova