LEGISLATIVE NEWSLETTER
Content:
- Decision no. 1/2017
- Order no. 872/5932/2284/2903/2016
- Emergency Ordinance no. 2/2017
- Emergency Ordinance no. 3/2017
Decision no. 1/2017
Decision no. 1 of January 1, 2017, published in the Official Gazette Part I no. 15 of January 6, 2017 on setting the minimum gross salary in Romania guaranteed for payment, brings the following clarifications:
„Art. 1 – Starting February 1, 2017, the minimum gross salary in Romania guaranteed for payment, the established amount that does not include bonuses and other additional benefits, is set at 1,450 lei per month for a full working schedule of 166.00 hours, on average per month in 2017, representing 8.735 lei / hour.”
Comment: If the base salary is set below the stipulated amount, it constitutes an offense and is sanctioned with a fine between 300 lei to 2,000 lei for each individual employment contract where the salary is set below that one set out in this decision, unless the deed does not represent a crime.
Order no. 872/5932/2284/2903/2016
Order no. 872/5932/2284/2903 of 2016, published in the Official Gazette Part I no. 22 of January 9, 2017 on the classification of the activity regarding the computer program creation.
Comment: This Order brings a number of amendments regarding the conditions that must be met by companies whose main activity includes computer program creation and that benefit from the tax exemption on income derived from salaries or assimilated to salaries. Thus, it was eliminated the requirement to obtain an annual income of at least the equivalent of 10,000 US dollars for each employee who carries out activities of computer program creation intended for sale and therefore benefits from the salary income tax exemption.
At the same time, the Order states that those companies which are established during the fiscal year, in order to benefit from the tax exemption on income derived from salaries or assimilated to salaries, are exempted from the conditions that require the company to have obtained income from computer program creation activities in the previous year and the registration of said income in the analytical balance sheet.
Another aspect brought by the present Order concerns the supporting documents required for the classification of individuals who benefit from the tax exemption on income derived from salaries or assimilated to salaries, meaning that now are required only certified true copies of academic documents and individual employment contracts, instead of certified copies.
The provisions of this Order come into force on February 1, 2017.
Emergency Ordinance no. 2/2017
Emergency Ordinance no. 2 of January 6, 2017, published in the Official Gazette Part I no. 16 of January 6, 2017 regarding certain fiscal measures, and amending and supplementing certain acts, brings the following clarifications:
Among other amendments and supplements to this Emergency Ordinance, we mention:
– Starting February 1, 2017, for personnel working for Public Institutions for Theatrical and Musical Shows, regardless of their subordination, who hold positions set out in Annex. IV Occupational family for public-sector positions “Culture” at Framework-Law no. 284/2010 on the unitary payment of personnel paid from public funds, Chapter I, paragraph b), the gross amount of the base salaries shall be increased by 50% compared to the threshold set for January 2017. The amount of the bonuses, allowances, compensations and other parts of the payment system which, by law, belongs to the gross salary, and is granted to the aforementioned personnel, shall be increased by 50% compared to the threshold set for January 2017, to the extent that said personnel carries out their activity under the same conditions;
– Starting July 1, 2017, by way of derogation from the provisions of art. 102 para. (2) of Law no. 263/2010 on the unitary public pension system, as amended and supplemented, the pension point value, established according to art. 12 para. (1) of the Emergency Ordinance No.99 / 2016 shall be increased by 9% and is of 1000 lei. Starting March 1, 2017 the social allowance for pensioners, provided by GEO no. 6/2009 regarding the minimum guaranteed social pension amount is of 520 lei.
Emergency Ordinance no. 3/2017
Emergency Ordinance no. 3 of January 6, 2017, published in the Official Gazette Part I no. 16 of January 6, 2017, amending and supplementing Law no. 227/2015 regarding the Tax Code, brings the following clarifications:
A new article is introduced; article 221 respectively, whereby taxpayers exclusively engaged in innovation, research and development activities are exempt from any income tax obligations. Thus, taxpayers exclusively engaged in innovation, research and development activities, defined as per Government Ordinance no. 57/2002 regarding scientific research and technological development, and its related activities, are exempt from income tax obligations for the first 10 years of activity. This exemption will operate subject to compliance with state aid regulations.
In the case of micro-enterprises, the Emergency Ordinance amends letter c) of art. 47, meaning that: “c) has obtained income not exceeding the equivalent in RON of EUR 500,000. The exchange rate to determine the amount in euros shall be the exchange rate valid at the end of the fiscal year, for which said income was registered”.
Practically, the amendment refers to one of the cumulative conditions to be met in order to qualify as a micro-enterprise; therefore the income threshold value previously established by law at the equivalent in RON of EUR 100,000 has been raised to 500,000 euros by the current provisions.
Income tax rates for microenterprises are:
a) 1% for microenterprises that have one or more employees;
b) 3% for microenterprises that have employees.
Salary income tax exemption is applied to those individuals who derive income from salary or salary assimilated income, based on an employment contract, concluded for a period of 12 months with a Romanian company performing seasonal activities, provided at art. 1 of Law no. 170/2016 regarding the tax specific to certain activities, throughout the year (article 60 paragraph 4), respectively Romanian corporate entities that conduct their business under the following NACE codes:
a) 5510 – Hotels and similar accommodation;
b) 5520 – Holiday and other short-stay accommodation;
c) 5530 – Camping grounds, recreational vehicle parks and trailer parks;
d) 5590 – Other accommodation services;
e) 5610 – Restaurants;
f) 5621 – Event catering activities;
g) 5629 – Other food service activities;
h) 5630 – Beverage serving activities;
For the purpose of the salary income tax computation, shall be deducted the cost for the voluntary health insurance premiums together with the subscription to medical services, covered by employees, as defined in Law 95/2006, republished, with subsequent amendments, within the annual threshold of EUR 400.
Starting February 2017, is repealed the threshold applicable for the monthly social insurance contribution and of the individual health insurance contribution on income derived from salaries or assimilated to salaries (the threshold was capped at 5 times the average gross salary)
Practically, the threshold is applied both for the social insurance contribution and the individual health insurance contribution for January, subsequently applying the contribution rates to the amount of gross earnings.