Emergency Ordinance no. 168/2022 regarding certain fiscal-budgetary measures, prorogation of certain deadlines, as well as amendment and completion of certain normative acts

Income tax and social contributions

Emergency Ordinance no. 168/2022

Several changes provided by the Ordinance refer to:

• The minimum salary for the construction sector was increased from RON 3,000 to RON 4,000 between 1 January 2023 – 31 December 2028;
• Between January – December 2023, 200 RON/ month from the monthly salary income will be free, under certain conditions, from income tax and social contributions for employees with a full time employment contract and monthly income below RON 4,000;
• The suspension for the tax incentives provided for parents with children enrolled in early childhood education system has been extended for the period between 1 January – 31 December 2023;
• The pension point will increase from RON 1,586 to RON 1,785 as of January 2023.

Other normative acts

• As per the Decision no. 1447/ 2022, the minimum gross salary guaranteed at national level will be increased to RON 3,000, starting from 1 January 2023 compared to RON 2,550 currently.
• Order no. 2031/2022 provides for the rental contracts registration procedure, as well as for the model and content of the registration form. For joint ownerships, the contract must be registered by each co-owner.
• Order no. 2420/2022 provides for the Procedure on the ex officio assesment of the tax obligations due from individuals for certain indemnities received further to social protection measures, as well as for certain income from abroad:
  • based on the exchange of information between the states, information from the annual tax return or other tax records, the tax authorities have the right to issue an ex officio tax assessment for income tax, pension and health fund contributions for:
    • indemnities received further to social protection measures;
    • pensions from abroad;
    • remuneration, allowances, other similar income, as well as any other benefits, in cash and/or in kind, obtained from abroad as:
      • members of the board of directors;
      • members of the directorate, members of the supervisory board, administrators, directors;
      • censors, founding members, representatives in the general meeting of shareholders; or
      • any other activities carried out in similar functions for the activity carried out abroad for foreign employers.
  • the individuals who failed to declare the previously mentioned types of income may receive notifications from the tax authorities;
  • non-compliance triggers the issuance of tax assessments ex officio for the taxes due from the taxpayers.
• The tax forms 015 and 030 were amended.

Fiscal measures

• the extension of the reverse tax application for energy supplies made to the trader, a taxable person who has the quality of a joint purchaser within the mechanism for the centralized purchase of electricity established by Ordinance no. 153/ 2022. The objective of this measure is to ensure the viability of this mechanism, by eliminating the financial imbalances that would appear between the collection rights of the producers for the quantities of electricity sold and the payment obligations of the economic operators who buy energy;
  
• new regulations appears for taxpayers who, after submitting the redirection form (form 177), have their corporate income tax due/microenterprise income tax due for the year for which the redirection was performed, diminished by rectification. In this case, taxpayers who have redirected an amount greater than the amount that could have been redirected, according to the law, owe the difference of corporate income tax/microenterprise income tax that was redirected in excess. These regulations are applicable also for the corporate income tax due/microenterprise income tax due for the year 2021, regardless of the date of rectification;
• the previously mentioned measure comes to support vulnerable people, considering the high level of the inflation rate generated by the increase in electricity, natural gas and fuel prices;

For more details regarding the above, please consult the Official Gazette no. 1186 of 9 December 2022.

The EY team is available for further details on the above