Main legislative changes of February 2023

1.  Changes of reporting obligations in the payroll taxes field

 

In the Official Gazette no. 119 from February 10, 2023, NAFA Order no. 165/2023 referring the change of the form 112 “Statement regarding the obligation to pay social contributions, income tax and the nominal evidence of insured persons” was published.

 

As a new aspect, starting with the salary income obtained for January 2023, all benefits in kind will be declared in the form 112, both taxable and non-taxable, including:

 

·       Delegation and detachment allowances, mobility clause benefits, separated by taxable and non-taxable amounts;

·       Taxable tickets (meal tickets, gift vouchers, cultural tickets, holiday vouchers, nursery tickets);

·       Contributions to a facultative pension fund/scheme;

·       Voluntary health insurance premiums as well as medical services provided based on a subscription;

·       Tourist and/or treatment services amounts, including the transport, during the holiday;

·       Subscription amount for using sport facilities;

·       The amount of food provided by the employer to its own employees;

·       The amount of accommodation and rent provided by the employers for its own employees;

·       The amount granted to employees who work remotely;

·       Stock option plan benefits.

 

Moreover, forms 100 and 112 were adapted to reflect the latest legislative changes, regarding the non-taxable facility of RON 200 per month, withholding tax on tipping amounts and more. 

 

2.  Tax amnesty for gift vouchers

In the Official Gazette no. 163 from February 24, 2023, Law no. 43/2023 regarding the cancellation of some tax liabilities was published. 

Both the principal tax liabilities and the related ancillary tax liabilities established by the tax authority as a result of the reclassification of income from gift vouchers obtained by individuals from persons other than their employers up to and including 31.12.2020 and not paid by 27.02.2023 as salary income will be cancelled. The cancellation will be made ex officio by the tax authority or at the taxpayer's request.

In addition, the tax authority shall not reclassify the income from gift vouchers obtained by individuals from persons other than their employers as salary income and shall not issue a taxation decision in relation to such reclassification for the period prior to and including 31 December 2020.

With regard to principal and/or accessory tax liabilities settled by any methods related to fiscal periods up to and including 31.12.2020, they shall be refunded to taxpayers on request. 

The application procedure, as well as the methods of refund of the amounts provided by this law shall be approved by NAFA Order, which will be issued within 30 days from the date of its entry into force, namely 27.02.2023.

 

 

3.  Reporting obligations regarding the agricultural land alienation

In the Official Gazette no. 93 from February 2, 2023, it was published the Order no. 883/2023 regarding the approval of the Procedure for tax calculation, collection, and payment, as well as the declarative obligations concerning the sale of agricultural land located in the countryside.

Moreover, in the Official Gazette no. 165 from February 27, 2023, it was published the NAFA Order no. 216/2023 regarding the approval of the Procedure determining the tax on income from the alienation of agricultural land located in the countryside / the control package of legal entities owning one or more agricultural lands located in the countryside.

We remind you that agricultural lands / control package of legal entities owning one or more agricultural lands located in the countryside, can be alienated before the land reached 8 years from the acquisition, with the obligation for the sellers to pay a tax at the rate of 80% applied on the positive difference between the value of agricultural land at the date of sale and at the date of purchase, under certain conditions.

The obligations to declare the tax or the tax base differ depending on how the ownership of the land/the control package of the legal entities is transferred, in so far as the alienation takes place before the land has reached 8 years from the acquisition.  

If lands are sold by a notarized sale contract, the tax is calculated and collected by the notary public before the notarial deed of land sale is authenticated. The tax is declared by the notary public using form 100 "Statement of payment obligations to the state budget".

If legal entities control packages are alienated and they own one or more agricultural lands located in the countryside and the total value of lands represents more than 25% of real estate assets, the seller is required to declare the income. The seller has to complete and submit Statement 213 declaring the positive difference between the value of the land existing at the time of the control package alienation and the value of the land at the time of acquisition, determined according to the indicative value established by the notary public's expertise.

If the alienation of the land/control package of legal entities owning one or more agricultural land located in the countryside is made by means of a court decision, then taxpayers may request the competent tax authorities to calculate the tax and issue the tax decision, by completing and submitting Statement 214.

 

4.  Update of the EU list regarding non-cooperative jurisdictions for tax purposes 

Russia, the British Virgin Islands, Costa Rica, and the Marshall Islands have been added to the EU list of non-cooperative jurisdictions for tax purposes (the blacklist).

Following these additions, the EU list currently contains 16 jurisdictions and can be accessed here.

Please note that at the corporate income tax calculation, the expenses related to the transactions carried out with a person located in a country which is included in the blacklist at the time the expenses are incurred, are non-deductible expenses for the transactions carried out starting with 1 January 2021, but only if the expenses are incurred as a result of transactions which do not have an economic purpose.