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Tax News – June 3, 2024
DRAFT LEGISLATION
June 3, 2024 – The Ministry of Finance published a draft Emergency Ordinance (OUG) to amend and supplement Law no. 227/2015 regarding the Tax Code, and other fiscal measures.
According to this draft:
- Amendments to excise duty provisions.
- Proposal to increase the non-taxable income amount from 200 RON/month to 300 RON/month, applicable to salaries and salary equivalents for which income tax is not due and which are not included in the monthly calculation base for mandatory social contributions, maintaining conditions regulated by OUG no. 115/2023. This measure applies to salaries from July to December 2024 inclusive.
- The 300 RON/month non-taxable amount targets employees with a gross base salary equal to the national gross minimum wage guaranteed in payment, without including bonuses and other additions.
This change is determined by the increase, starting July 1, 2024, of the gross minimum monthly salary from 3,300 RON to 3,700 RON, to be decided by the Government this week.
Consult the draft and its explanatory note:
EUROPEAN COURT OF JUSTICE DECISIONS – TAXATION
May 30, 2024 – Case C 627/22 AB v. Finanzamt Köln Süd
"Preliminary ruling – Agreement between the European Community and Switzerland on the free movement of persons – Worker from a member state who moved to Switzerland – Tax advantages – Income tax – 'Taxation on request' mechanism – Beneficiary taxpayers – Limitation to employees partially subject to tax who reside in a member state or a state party to the European Economic Area (EEA) Agreement – Equal treatment"
The Court declares:
Articles 7 and 15 of the Agreement between the European Community and its member states, on the one hand, and the Swiss Confederation, on the other hand, on the free movement of persons, signed in Luxembourg on June 21, 1999, as last adapted by the Protocol of March 4, 2016 regarding the participation of the Republic of Croatia, as a contracting party following its accession to the European Union, read in conjunction with Article 9(2) of Annex I to that Agreement,
Must be interpreted as opposing a regulation of a member state that reserves to resident taxpayers of that member state, another member state, or a state party to the EEA Agreement of May 2, 1992, who reside in one of these states, the right to opt for a taxation procedure on request for income from employment to consider expenses such as professional expenses and the deduction of the collected payroll tax in the withholding tax procedure, which can lead to a refund of income tax, and does not confer such a right of option, among others, to a national of the first member state who resides in Switzerland and obtains income from employment in that member state.
Read the decision: Curia
NEWS AND ANNOUNCEMENTS
May 31, 2024 – e-Invoice System
On June 1, the suspension of sanctions expired, but the first fines will be issued in July. New rules will be analyzed. ANAF will apply the first fines for irregularities in invoice reporting and in the e-Invoice system, effective reporting, or exceeding the 5-day working term, at the beginning of July. ANAF will review the situation for the entire month of June, and a company will be fined only once for June, regardless of whether it has one or more breaches related to e-Invoice reporting during that month.
Read more: Profit.ro
FISCAL CONSULTANTS CHAMBER UPDATES (CCF)
May 29, 2024 – Response from the Ministry of Finance on May 22, 2024, to address CCF no. 1110/22.02.2024, highlighting difficulties in understanding and practical application of new provisions regulating income taxation from leasing property, following changes by OUG no. 115/2023. Read the response
May 28, 2024 – Clarifications on the tax treatment applicable to the distribution of contribution premiums and merger/division premiums to shareholders/associates. Read more
May 27, 2024 – Clarifications on recognizing and taxing certain employer-covered incomes for employees, effective January 1, 2024, following OUG no. 115/2023 provisions. Learn more
