Romania: Latest tax legislation amendments as of 2022

Shortly before the end of the year, Romanian tax legislation has been amended by Government Emergency Ordinance no. 130/2021 and Law 301/2021.

Of the most important amendments brought by GEO 130/2021, which will enter into force starting with 2022, we note the following:

1. The non-taxable threshold for gifts in cash and/or in kind, including gift vouchers offered by employers to employees and their children on certain regulated occasions (e.g. Christmas, Easter etc.) will be increased from RON 150 to RON 300.
2. Gift vouchers which exceed the above threshold will be included in the taxable base of social contributions. 
3. Gift vouchers can only be granted to employees.
4. Starting with 1 January 2022, the reduced VAT rate of 5% will also be available on the sale of qualifying apartments with a price (excluding VAT) ranging from RON 450,000 to RON 700,000. The main condition to apply the reduced rate in this case is that private persons acquiring such properties are only allowed to acquire one qualifying apartment with the reduced rate. To monitor compliance with this condition, a special register will be set up and maintained by the tax authorities to keep track of all sales subject to the reduced VAT rate.
5. Starting with 1 March 2022, taxpayers that withhold taxes and contributions from their employees or business partners and do not forward said funds to the public treasury within 60 days will be subject to criminal charges of tax evasion. The list of withholding taxes and contributions for which this applies is presented in an annex to GEO 130/2021.
6. The electronic system “E-factura” will become mandatory for all suppliers of products with a high tax risk starting with 1 July 2022. Before that, the system is optional. Products with a high tax risk will be defined in a subsequent order issued by the President of Romania’s National Agency for Fiscal Administration (ANAF).
7. Fiscal incentives for early childhood education for employees’ children will be suspended until 31 December 2022. Until that time, expenses for nurseries and pre-schools administrated by employers will be included in that employer’s social expenditures and will be deductible up to an amount equivalent to 5% of its overall salary expenses.
8. Extension for application of tax amnesty - the deadline for submitting applications for cancellation of ancillary tax liabilities related to principal tax liabilities with maturities prior to 31 March 2020 (including those resulting from tax inspections) is extended from 31 January 2022 to 30 June 2022.

In addition to the above, Law 301/2021 clarifies that the profit tax reductions available for certain levels of equity, based on the provisions of Government Emergency Ordinance 153/2020, will be applied individually by each member of a profit tax group, before the leader of said group consolidates the corresponding individual taxable results.