The facilities in the construction sector are maintained. Summary of legislation provisions regarding the facilities in the construction sector

As of July 22^nd 2019, the conditions for benefiting from the tax facilities provided for the construction sector are:

• the employers develop the activities corresponding to the CAEN codes provided at art. 60, point 5 of the Tax Code and achieve a turnover from these activities of up to at least 80% of the total turnover;

• the exemption applies to the amounts from the monthly gross income of at least 3,000 lei corresponding to an 8-hour workday schedule, respectively, a monthly gross income of up to 30,000 lei, amounts obtained from salaries or assimilated to salaries earned by natural persons. The part from the monthly gross income that exceeds 30,000 lei will not benefit from tax facilities.

• the exemption is applied starting from the month when the conditions provided at art. 60 point 5 from the Tax Code are cumulatively fulfilled.

Clarifications on the application of tax facilities in constructions:

a) As of July 22^nd 2019, the incomes from monthly gross salaries and assimilated to salaries, earned by the natural persons to whom the exemption applies, are calculated by reference to a basic gross salary for 8 hours of work/day of at least 3,000 lei per month, respectively, for an average normal working program of 167.333 hours per month, representing 17.928 lei/hour. Consequently, the facilities are granted also for the employees in the construction sector hired based on a part-time labour agreement, provided that the hourly salary rate is at least equal to 17.928 lei.

 

b) In the case of legal relationships generating incomes from salaries and assimilated to salaries, other than the individual labour agreements, respectively, administration contract, mandate contract and others, for which the monthly gross income is not calculated as a gross income for 8 hours of work/day of at least 3,000 lei per month, the tax facilities are granted only if the monthly gross income is at least equal to 3,000 lei.

 

c) In the case of internship and apprenticeship contracts, the tax facilities are granted only if the gross basic salary is established in proportion to the gross basic income for a normal work program of 8 hours/day.

 

d) For the monthly incomes from salaries and assimilated to salaries, earned based on an individual labour agreement, of less than 3,000 lei/month, the tax facilities are granted, provided that the national minimum gross basic salary guaranteed in payment established in cash, without including allowances, incentives and other supplements, is 3,000 lei per month, for an average working program of 167.333 hours per month.

Example: if a full-time employee has a monthly gross basic salary of at least 3,000 lei/month in the individual labour agreement, but in the reporting month s/he has worked a fraction of a month or has been in sick leave, s/he benefits from the tax facilities for the earned income;

 

e) The tax facilities provided for the construction sector are granted to natural persons seconded only in Romania, if the entity to which they are seconded develops activities in the construction sector and fulfils the cumulative conditions provided at art. 60 point 5 of the Tax Code, and if the latter pays the salary rights during the secondment. The tax facilities are not granted to natural persons seconded outside Romania or to the employees seconded in Romania from member states of the European Union, European Economic Area and the Swiss Confederation or from other third countries.