Content:
• Law no. 135/2022
Law no. 135/13.05.2022
Law no. 135/13.05.2022 published in the Official Gazette no. 489 of May 17, 2022 for the amendment of certain normative acts, brings the following clarifications:
Comment: The minimum salary for employees in the agricultural sector and the food industry is set at 3,000 lei gross per month for the period from June 1, 2022 to December 31, 2028.
These employees will be granted tax incentives applicable to incomes from salaries and similar.
Like employees in the construction sector, employees in the agri-food industry shall benefit from the following tax incentives applicable to salaries:
- Exemption for income tax — 10%;
- Exemption for health contributions – CASS – 10%;
- Reduction of pension contribution – CAS – from 25% to 21.5%.
Employers in these sectors shall pay a work insurance contribution reduced to 0.337% of the gross salary.
To benefit from the above, employers must carry out in Romania activities in the agricultural sector and food industry defined by the following CAEN codes:
1. NACE code 01: Agriculture, hunting and related service activities
011 – Growing of non-perennial crops;
012 — Growing of perennial crops;
013 — Plant propagation;
014 — Animal production;
015 – Mixed farming (vegetable crops combined with animal production);
016 — Support activities to agriculture and post-harvest crop activities;
2. NACE code 10: Food industry.
At the same time, employers must obtain the turnover from the activities mentioned above within the limit of at least 80% of the total turnover. For newly established employers, respectively registered in the Trade Register/registered for tax purposes starting June 2022, the turnover is calculated cumulatively from the registration date, including the month when the exemption applies. For existing employers on June 1, 2022 the calculation basis is the turnover achieved cumulatively since the beginning of the year, respectively cumulative from the date of registration in the case of those established / registered in the period between the beginning of the year and June 1, 2022, including the month in which the exemption applies. For employers existing on January 1 of each year after June 1, 2022, the turnover is calculated cumulatively in the corresponding period of the current year, including the month in which the exemption applies. The turnover will include the achieved and not invoiced production.
The gross monthly income from salaries and assimilated to salaries, obtained by individuals for whom the exemption is applied, are calculated at a gross salary of 8 hours of work / day of minimum 3,000 lei per month. The exemption applies for the amounts from the monthly gross income of up to 30,000 lei, obtained from salaries and assimilated to salaries, gained by individuals. The part of the monthly gross income that exceeds 30,000 lei will not benefit from tax incentives.