smart--update

Important changes in tax legislation starting with January 1, 2023

Amendments to the tax legislation, applicable starting with the revenues related to January 2023. According to the Emergency ordinance no. 168/2022 regarding some fiscal-budgetary measures, the extension of certain terms, as well as for the modification and completion of some normative acts, in force from December 9, 2022, and published in the Official Gazette, Part I no. 1186 of December 9, 2022, a series of changes in tax legislation, as well as labor legislation, will take place starting january 1, 2023.

We present below the main changes made to the tax legislation:

a) Income tax:

The provisions regarding the income tax exemption in the construction sector are updated, corresponding to the new value of the minimum wage of 4000 lei. We mention that the maximum ceiling of 10,000 lei is in force, including for the minimum wage in this sector.

The provision enters into force on January 1, 2023 and is applied starting with the revenues for January 2023.

b) Modifications/completions of GO 16/2022:

The provisions regarding the exemption from tax of certain cumulative incomes included in the monthly ceiling of 33% of the basic salary and the provisions regarding social contributions are completed, by including the phrase “monthly salary/monthly salary granted/granted”.

These provisions enter into force on January 1, 2023 and apply starting with the income related to January 2023.

c) The non-taxable nature of the amount of 200 lei/month from salaries:

Starting from January 1, 2023, in the case of employees who carry out activity based on the individual employment contract, employed full-time, at the place where the basic function is located, no income tax is due and it is not included in the monthly calculation basis of mandatory social contributions amounting to 200 lei/month, representing income from wages and salaries, if the following conditions are cumulatively met:

-> the level of the basic monthly gross salary established according to the individual employment contract, without including increments and other additions, is equal to the level of the minimum gross salary in the country guaranteed in payment established by Government decision, in force in the month to which the income is related ;

-> the gross income made from wages and wages, based on the same individual employment contract, for the same month, does not exceed the level of 4,000 lei inclusive.

NOTE! The condition stipulated in letter a) is not considered to be fulfilled if, in the period between the entry into force of this emergency ordinance and December 31, 2023, the level of the monthly gross basic salary established according to the individual employment contract is reduced, without includes allowances and other additions.

The provisions mentioned above apply under the same conditions and in the following cases:

-> employees who carry out activity in the agricultural sector and the food industry and do not benefit from the fiscal facilities provided by the Fiscal Code for this sector (income tax exemption and exemptions/reductions of social contributions)

-> income from wages and similar wages obtained on the basis of a service report, according to the law.

The amount of 200 lei decreases according to:

– the period of the month in which the basic salary/monthly balance of the individual employment contract or the service report, as the case may be, are kept at the level of the gross minimum wage in the country guaranteed by the Government decision;

– the date from which the new employees are employed at a level of the salary/monthly balance, as the case may be, equal to the level of the minimum gross salary in the country guaranteed;

– the fraction of the month for which the income from salaries is determined and assimilated to salaries;

– the date from which the individual employment contract/service report ceases, as the case may be.

In the case of part-time employees, for the revenues for 2023, the level of the minimum gross basic salary in the country decreases by the amount of 200 lei in the month in which the social contributions are calculated at the minimum wage.

The above provisions apply to the revenues related to January-December 2023 inclusive.

d) The minimum wage in the construction sector:

Starting with January 1, 2023, for the field of construction, the minimum gross basic salary in the country guaranteed in money, without including the allowances, the bonuses and other additions, to the amount of 4,000 lei a month, for a normal work program On average 165,333 hours per month, representing on average 24.194 lei/hour.

Between January 1, 2023-31 December 2028, for the field of construction, the minimum gross basic salary in the country guaranteed will be at least 4,000 lei a month, without including allowances, bonuses and other additions, for a normal working program on average of 165,333 hours per month.

Confidentiality note: By completing this form, I give my consent to the processing of personal data, only for the purpose for which they were requested, in accordance with the Privacy Policy.

Leave a Comment

Request an offer!

Newsletter

Subscribe to the Smartree newsletter to keep you updated with all the latest HR news
I agree to the processing of the e-mail address only for the provision of the Newsletter service, in accordance with the Privacy Policy.

Partnerships

About ADP (NASDAQ – ADP) Designing better ways to work through cutting-edge products, premium services and exceptional experiences that enable people to reach their full potential. HR, Talent, Benefits, Payroll and Compliance informed by data and designed for people. Learn more at www.adp.com. ADP, the ADP logo, and Always Designing for People are trademarks of ADP, LLC.

Memberships

aramt-member

Certificates

iso9001-2015
iso27001-2013