The new amendments to the Fiscal Code

The fiscal amendments introduced by this law are to come into force gradually, more precisely at four distinct moments in time: 1st of November 2023, 11th of November 2023, 1st of January 2024 and 1st of July 2024.

We will focus at this point on the changes starting from November 1st 2023 respectively November 11th 2023 and will address the rest of the changes closer to their time of entry into force.

The first set of changes, which are in force starting November 1st 2023 concern employees in the IT, construction, agriculture and food industry sectors who earn more than 10,000 lei from their main employment regarding:

1. The exemption from income tax for the employees listed above will be granted only to their main employment and only for gross income from salaries and similar income up to 10,000 lei;

2. The Social Insurance Contribution (ab. in Romanian ”CAS”) will be calculated at a reduced rate for main employment only up to incomes not exceeding 10,000 lei. Employees may opt to be taxed at the full rate , of 25%, in which case these amounts are to be credited to their private pension account (Pillar II);

3. The Social Health Insurance Contribution (ab. in Romanian ”CASS”) will be applied at the rate of 10% to the gross income from each employment contract regardless of the amount of the salary.

The amendments  from  November 11th concern the regime of cash payments by establishing value limits up to which they are allowed. The most important thresholds set are:

1. receipts and payments are permited within a daily limit of 1000 lei/person (now at 5000 lei), but not more than a total limit of 2000 lei/day (now at 10000 lei/day);

2. cash payments from advances for settlement can be made up to a daily maximum of 1000 lei per person who has received advances for settlement (now at 5000 lei);

3. cash receipts and payments made between companies/self-employed persons and individuals as partners, shareholders or administrators representing loans, regardless of their nature and destination, may be made only by non-cash payment instruments;