LEGISLATIVE NEWSLETTER
Contents:
- Joint Order No. 409/4.020/737/703
- Law No. 136/2017
- Law No. 177/2017
- Decision No. 512/2017
- Ordinance No. 4/2017
- Joint Order No. 953/783
Joint Order No. 409/4.020/737/703
Joint Order No. 409/4.020/737/703, published in the Official Gazette, Part I, No. 468 of 22.06.2017, of the Ministry of Communications and Information Society, of the Ministry of National Education, of the Ministry of Labour and Social Justice and of the Ministry of Public Finance regarding the classification in the category of computer program creation activities, makes the following specifications:
Comment: This Order defines the legal framework when the employees benefit from tax exemption on salary income from the creation of computer programs.
The conditions to be cumulatively met for the employees of economic operators which carry out business on the territory of Romania, whose object of activity includes the creation of computer programs (NACE 5821, 5829, 6201, 6202, 6209) in order to benefit from income tax exemption on salary, wages and similar income, are the following:
a) the positions of their employment correspond to any of the following occupations: database administrator, analyst, computer system engineer, software system engineer, information project manager, programmer, information system designer, information system programmer;
b) the position is part of a specialized computer department, outlines in the employer’s organizational chart as: division, department, unit, service, office, compartment, or the kind;
c) they hold a diploma granted after the graduation of a form of long-term education or hold a diploma granted after the graduation of cycle I of university studies, issued by an accredited institution of high education, and perform effectively one of the activities enumerated at letter a);
d) the employer achieved in the previous financial year and distinctly reported in its analytical balance sheets incomes achieved from computer program creation activities meant to be traded;
e) the annual income specified at letter d) amounts at least to EURO 10.000 in the equivalent Lei (calculated at the monthly average exchange rate communicated by the National Bank of Romania, for each month when the income was reported) per each employee that benefits from income tax exemption.
The condition regarding the annual income does not apply to companies established during a certain fiscal year in their year of establishment and the following fiscal year, and to companies subject to reorganization in the year when the reorganization took place.
The Order also contains information regarding the supporting documents to be considered upon classification of tax-exempt persons on income salaries and the kind, on how they are archived/signed and on the drawing up of the payroll.
The provisions of the Order are applicable from 1st July 2017 and shall apply starting with the income achieved in July 2017.
Law No. 136/2017
Law No. 136 din 13.06.2017, published in the Official Gazette, Part I, No. 440 of 14.06.2017, on the approval of the Government Emergency Ordinance No. 32/2016 supplementing Law No. 227/2015 on the Fiscal Code and the regulation of certain financial-fiscal measures, makes the following specifications:
Comment: This law amends article 60, point 3 of the Fiscal Code which refers to tax exemption on income tax due by persons who achieve salary, wages and similar income from research-development and innovation activities.
Thus, the new text of law has the following contents:
„3. natural persons, on income achieved as salary, wages and similar income, as provided in
article 76 paragraphs (1)-(3), pursuant to the performance of research-development and innovation activities, defined as per the Government Ordinance No. 57/2002 regarding scientific research and technological development, approved with amendments and supplements by Law No. 324/2003, with the subsequent amendments and supplements, according to the procedure set by means of the Joint Order of the Ministry of Public Finance and the Ministry of Research and Innovation, in the following conditions:
a) tax exemption is granted to all persons included in a research-development and innovation project team, as such project is defined in the Government Ordinance No. 57/2002, approved with amendments and supplements by Law No. 324/2003, as subsequently amended and supplemented, where result indicators are defined;
b) tax exemption is granted in the limits of the expenses borne with the personnel allotted to the research-development and innovation project, as distinctly outlined in the project budget;
c) the payroll corresponding to the income on salary, wages and similar income, achieved by each employee from the activities carried out in the research-development and innovation project, are drawn up separately for each project.”
The provisions of this law shall apply starting with the income achieved in July 2017.
Law No. 177/2017
Law No. 177 din 18.07.2017, published in the Official Gazette, Part I, No. 584 of 21.07.2017, on the approval of Government Emergency Ordinance No. 3/2017 amending and supplementing Law No. 227/2015 on the Fiscal Code, makes the following specifications:
Comment: This law makes amendments to the amounts deduced from the calculation basis of the income tax payable on salaries achieved from the main job of the employment. Thus, voluntary health insurance premiums are deduced, and the medical services provided in the form of subscription, as defined under Law No. 95/2006, republished, with the subsequent amendments and supplements, which are borne by the employees, so that the equivalent of Euro 400 in Lei should not be exceeded in the respective year. The insurance contract, respectively subscription regard medical services provided to the employee and/or to any dependant of the employee. The dependant is defined at article 77 paragraph 3 of the Fiscal Code.
At the same time, any income representing voluntary health insurance premiums, as well as medical services provided under subscription as per Law No. 95/2006, republished, with the subsequent amendments and supplements, which are borne by the employers for their own employees, are exempt from the payment of income tax, on condition that the equivalent of Euro 400 in Lei is not exceeded in the respective year.
Decision No. 512/2017
Decision No. 512 of 20.07.2017, published in the Official Gazette, Part I, No. 592/24.07.2017, regarding the setting of 14th August 2017 as a holiday, makes the following specifications:
Comment: This Decision runs that the date of 14th August 2017 shall be a holiday for the employees in the public sector, and shall be recovered on 19th August 2017 of by working overtime.
Ordinance No. 4/2017
Ordinance No. 4 din 20.07.2017, published in the Official Gazette, Part I, No. 598 of 25.07.2017, amending and supplementing Law No. 227/2015 on the Fiscal Code, makes the following specifications:
Comment: This Ordinance makes amendments to the calculation basis of the social security contribution payable by the employer.
Thus, in case the gross monthly income achieved from a full-time or part-time individual employment contract is below the level of the guaranteed gross minimum salary per country, the income to be considered when determining the monthly calculation basis for the social security contribution payable by employers or the kind, shall be the gross minimum salary per country as applicable in the month when the social security contribution is due, corresponding to the number of working days in the month when the contract was active.
This amendment does not apply to income achieved by the following categories of employees:
a) pupils or students up to 26 years old, registered in a form of education;
b) apprentices, in the conditions of the law, up to 18 years old;
c) persons with disabilities who are recognized under the law the possibility to work less than 8 hours a day;
d) pensioners on the limit of age valid for retirement in the public pension system, except for age-limit pensioners who enjoy public service pensions based on special laws/statutes, as well as those who cumulate age-limit pension according to the limit of age in the public sector pension system with the pension established in one of the pension systems not integrated in the public sector pension system;
e) he/she achieves in the same month salary, wages or similar income based on two or several individual employment contracts, and the cumulated monthly calculation basis corresponding to them is at least equal to the gross minimum wage per country.
In applying the aforementioned, supporting documents are required from the natural persons qualifying for any of the situations provided at letters a), c) and d), and with regard to letter e), the procedure of application shall be set by means of an order of the Ministry of Public Finance.
These provisions become applicable on 1st August 2017 and shall apply starting with the income achieved in August 2017.