Romania: Fiscal incentives for the agriculture and food industry
Law no. 135 of 13 May 2022, published in the Official Gazette on 17 May 2022, enforces the application of fiscal incentives for employees who earn salary income in the agricultural and food industry.
The fiscal incentives are similar to those existing for the construction sector and consist of:
- An exemption from the payment of income tax;
- An exemption from the payment of health insurance contributions;
- A 3.75 percentage point reduction in social insurance contributions;
- A reduction in the work insurance contribution payable by employers.
The application of the fiscal incentives is subject to the following conditions:
- The employers carry out activities in the agricultural and food industry in Romania defined by the following NACE codes:
- NACE 01 - Crop and animal production, hunting and related service activities, except NACE 017 - Hunting, trapping and related service activities
- NACE 10 - Manufacture of food products
- The employers obtain turnover from the aforementioned activities of at least 80% of their total turnover.
At the same time, the Law provides that:
- For the agricultural and food industry, the minimum gross base salary will be at least RON 3,000/month, without including allowances, bonuses and other additions. The fiscal incentives are granted for a gross monthly salary income of up to RON 30,000. Above this threshold the normal income tax and social contribution rates apply;
- The fiscal incentives are applicable between June 2022 and December 2028.