The year 2021 will begin with a series of amendments introduced by Law 296/2020 to amend the Fiscal Code and Law 295/2020 to amend the Fiscal Procedure Code, both published in MOF 1266 of December 21, 2020. Also on December 31, 2020 it was published GEO 226 which postpones some of these measures for 2022.

We propose to address the most important of them, according to the number of individuals and legal entities affected by the changes:

• Although Romania does not yet operate with the concept of Holding companies, the treatment and functionality of the Fiscal Group is clarified with the new version of the law. Starting with 2021, the groups of companies will be able to report and pay a cumulative profit tax at the level of the tax group.

• Gift cards given by a company to individuals who are not in a salary-generating relationship with it are income from other sources and are subject to only 10% income tax.

• Some simplified mechanisms are extended in relation to ANAF: simplified rescheduling of debts, non-execution of debts, allocation of VAT to be reimbursed without control, until March 31, 2021.

• There are a series of measures to reorganize the mode of control, reporting and contestation in relation to ANAF-Fiscal Inspection Service. These measures are intended to clarify the ability of ANAF inspectors to interpret certain legislative issues, as well as to separate and clarify the way in which control acts are challenged:

• The minimum wage on the economy is changed starting with January 1 to 2300 lei, only for the positions that are not included in the base of higher education

• A new telework aid is introduced, amounting to 400 lei / month, to cover the expenses of using housing as a work space.

Find below the measures initially announced for 2021, already circulated online and which will be applied from 2022:

• Increase the VAT ceiling on collection from 2,250,000 LEI to 4,500,000 lei. The deadline for exercising the option is maintained until January 25.

• The ceiling for the purchase with VAT of 5% of the dwellings is increased to the equivalent of 140,000 euros.

• The deductibility of adjustments for impairment of receivables will be granted in the proportion of 100% until 2022. For 2021, the percentage of 30% remains valid.

We also remind you of the verification of the inclusion in the fiscal ceilings valid in 2021 and of the possibility to exercise the option regarding the VAT on collection until January 25th.

2020 tax code suggestions

The 2020 Tax Code is still in the draft stage and is available on mfinante.ro under the decision transparency section.

Changes regarding the minimum wage are already into effect and it will also derive increases in: Unemployment benefit, death allowance, fine point, contribution for the disabled persons without an employment and any other indicator based on the minimum wage and/or the average gross wage of the country.

If the draft legislation will be voted in its current form, it will cause a series of changes for the business environment. We look at the most important changes announced, below.

  • The use of certain vehicles which are not used exclusively for the purpose of economic activity and are in the assets of legal persons applying for the micro-enterprise tax or activity-specific tax is excluded from taxable income assimilated to wages;
  • The obligation to pay and declare income tax and compulsory social contributions relating to benefits in cash received by the employee from third parties shall be regulated.
  • The VAT exemption procedure for intra-Community delivery of goods is modified.

The beneficiary from the Member State of destination shall possess a valid VAT registration code and the person carrying out the intra-community supply of goods shall hold a set of at least 3 documents in addition to the properly drawn up invoice. In short, it is a declaration by the beneficiary that he has received the goods, a document certifying the transport of the goods (CMR, transport invoice) and a set of documents issued by a public authority attesting the arrival of the goods in the Member State of destination (warehouse receipt or notarial declaration).

  • Increases in the minimum wage

The minimum wage is set differentially and the new values ​​applied from January 1 are:

    • the minimum gross wage is 465 euro, for personnel classed in secondary education or without education;
    • the gross minimum wage is 465 euro for the employees who are in positions which involve a higher level of education and they have at least 1 year of experience.
  • Certain aspects concerning tax groups and tax residence are clarified

For this it sets out the stipulations on hybrid mismatches, which are relatively new in the Tax Code. The stipulations refer to the introduction of some conditions to limit the possibility for multinational businesses to deduct unevenly or to double certain financial elements, based on their different legal classification according to the State where they are registered, versus the State where they operate.

The legal basis for the creation and use of tax groups is developing, including the payment of group corporate tax.

It also clarifies certain aspects concerning the allocation of deductions received by natural persons with a transnational tax residence.

  • Certain territories not forming part of the customs territory of the European Union are excluded from VAT:

a) The Federal Republic Of Germany:

Heligoland Island,

Bushingen territory,

b) The Kingdom of Spain:



c) The Italian Republic:


As well as a number of territories forming part of the customs territory of the European Union:

a) The Canary Islands;

b) The French territories referred to in 349 and Article 355(1) of the Treaty on the Functioning of the European Union;

c) Mt. Athos;

d) Aland Islands;

e) The Channel Islands;

f) Campione d’Italia.

g) Italian waters of Lake Lugano.


Programmers remain exempt from income tax in 2018 as well

Remember our FB Article of 27th September?

I was telling you then that we don’t believe in the abrogation HG 409 to be completed, regarding the tax exemption for programmers.

We had several meetings and debates with colleagues in the IT sector where we all analyzed the pay change scenarios after the contributions transferred to the employee.

Our answer was as clear as possible, the tax exemption granted by a special law has nothing to do with the calculation of the tax modified by the Fiscal code.

The clarifications come from the legislation through order 1168/14.12.2017 regarding the work of creating computer programs, Published in 18.01.2018 in the MOF.

In conclusion, in January 2018, programmers are exempted under HG 409, as in December 2017, and the new order has been applied since February.

The turnover threshold remains 10.000 EUR, but as there have been 2 important legislative changes in the last 6 months on this subject, we recommend that you re-check the exempted files and ensure you have the need for documents drawn up in accordance with the period.