Content:
• Emergency Ordinance no. 13/2021
• Law No. 16/2021
Emergency Ordinance no. 13/2021
Emergency Ordinance no. 13 published in the Official Gazette no. 197 of February 26, 2021 Part I amending and supplementing Law no. 227/2015 on the Fiscal Code and the Accounting Law no. 82/1991, brings the following clarifications:
Comment: This emergency ordinance brings a series of changes regarding the gift vouchers, as well as other changes such as:
- The following expenses are non-deductible: expenses for transactions carried out from 1 January 2021 which lack economic purpose and that were incurred with persons located in a State which, at the date of the expenses, is included in Annex I of the EU List of non-cooperating jurisdictions for tax purposes, published in the Official Journal of the European Union.
- Article 76 para. (4), letter a) shall be amended and shall read as follows: “The following expenses are non-taxable, within the meaning of income tax: a) funeral benefits, benefits for serious and incurable diseases, for medical devices, for birth/adoption, for losses incurred in private households as a result of natural disasters, income representing gifts in cash and/or in kind, including gift vouchers offered to employees, as well as those offered for their minor children, the transport costs to and from work, the value of tourist and/or treatment services, including transport, during the holiday period, for the employees and their family members, granted by the employers for their employees or other persons, as provided for in the employment contract or internal regulations. The types of income mentioned above are still non-taxable if earned by natural persons and received under special laws and/or financed from the budget, except for holiday allowances granted in accordance with the law.
- In the case of gifts in cash and/or in kind, including gift vouchers offered by employers, the income is exempt of tax, provided their value for each person, and for the following types, does not exceed RON 150:
(i) Gifts offered to employees, as well as those offered to their minor children, for Easter, Christmas and similar holidays of other religious cults;
(ii) Gifts given to employees on the 8th of March;
(iii) Gifts offered to employees on the 1st of June for their minor children.
The value of tourist and/or treatment services, including transport, during the holiday period, for the employees and their family members, granted by the employers, as provided for in the employment contract, internal regulations or given under special laws and/or financed from the budget are non-taxable, insofar as their total value does not exceed in a fiscal year and for each employee the average gross salary used for the state social insurance budget for the year in which they were granted”.
- Beneficiaries of income from salaries and similar to salaries owe a monthly, final tax, which is calculated and withheld at source by the payers of income, except for individuals who earn income from salaries and similar in Romania based on employment contracts concluded with employers who are not Romanian tax residents, for which the provisions of art. 82 are applicable.
- The monthly calculation base does not include the funeral benefits, benefits for serious and incurable diseases, for medical devices, for birth/adoption, for losses incurred in private households as a result of natural disasters, income representing gifts in cash and/or in kind, including gift vouchers offered to employees, as well as those offered for their minor children, the transport costs to and from work, the value of tourist and/or treatment services, including transport, during the holiday period, for the employees and their family members, granted by the employers for their employees or other persons, as provided for in the employment contract or internal regulations. In the case of gifts in cash and/or in kind, including gift vouchers offered by employers, the income is exempt of tax, provided their value for each person, and for the following types, does not exceed RON 150:
(i) Gifts offered to employees, as well as those offered to their minor children, for Easter, Christmas and similar holidays of other religious cults;
(ii) Gifts given to employees on the 8th of March;
(iii) Gifts offered to employees on the 1st of June for their minor children.
As a result of the changes brought by this Emergency Ordinance, we understand that gift vouchers granted on occasions other than Easter, Christmas, March 8 (to female employees), June 1 (to underage children of employees) shall not be exempted from contributions.
An important aspect is that, after this Emergency Ordinance, employers can include, also in the Internal Regulations, the provisions relating to benefits and gifts in money and/or in kind (including gift vouchers) and these shall benefit from tax facilities. Prior to this emergency ordinance, these could be provided only in the (collective or individual) employment contract.
Other measures imposed by this law concern the situation of benefits in money and/or in kind received from third parties under the provisions of the individual employment contract, of an employment relationship, secondment or of a special statute provided by the law or by a contractual relationship between parties.
At the same time, this law states that in 2021, the annual income declaration for associations without legal personality and entities subject to the fiscal transparency regime, must be submitted by April 15, 2021, inclusive.
Law No. 16/2021
Law no. 16 published in the Official Gazette no.238 of March 09, 2021 Part I, the Social Security State Budget Law for 2021, brings the following clarifications:
Comment: Among others, the law also sets the average gross salary used for the establishment of the national social insurance budget for 2021 at the value of RON 5.380.
The average gross salary decrease by RON 49 compared to its value in 2020.
The amount of the death benefit shall be as follows:
a) Death of the insured person or the pensioner — RON 5.380;
b) Death of a family member of the insured or the pensioner — RON 2.690 lei.