Changes will be made to the train ordinance, which will be passed on Thursday. An additional indexation of 5.1% will be assigned to military pensions, according to some sources in the government.

The law says that it is automatically indexed to the inflation rate of the previous year.

“So 5.1% is applied and there is an additional indexation of pensions between certain thresholds,” they said.

According to sources, military pensions until December 2017, up to 3,000 lei, receive an additional indexation of 7.4%.

Those who make 3,001 to 4,400 lei receive 5.1%. Then there will be a decline. For example, from 8,601 lei to 10,000 lei is indexed by 2.1%.

And after 2018, pensions will be indexed.

Soon, we will see in detail in the new version of the project.

RENEWAL

For state military pensions, transferred or established, depending on the circumstances, by December 31, 2017, additional indexation by position is carried out:

• up to and including 3,000 lei, indexed by 7.4%, not exceeding 3,154 lei;

• from 3,001 lei to 4,400 lei inclusive, indexed by 5.1%, not exceeding 4,573 lei;

• from 4,401 lei to 5,800 lei inclusive, indexed by 3.9%, not exceeding 5,981 lei;

• from 5,801 lei to 7,200 lei inclusive, indexed by 3.1%, not exceeding 7,388 lei;

• between 7,201 lei – 8,600 lei, indexed by 2.6%, not exceeding 8,782 lei;

• between 8,601 lei – 10,000 lei, indexed by 2.1%, not exceeding 10,000 lei.

State military pensions, assigned from 01.01.2018, are subject to additional indexation by position:

• up to and including 3,000 lei is indexed by 3.8%, not exceeding 3,076 lei;

• from 3,001 lei to 4,400 lei inclusive, indexed by 2.5%, not exceeding 4,485 lei;

• from 4,401 lei to 5,800 lei inclusive, indexed by 1.9%, not exceeding 5,888 lei;

• from 5,801 lei to 7,200 lei inclusive, it is indexed by 1.5%, not exceeding 7,295 lei;

• between 7,201 lei – 8,600 lei, indexed by 1.3%, not exceeding 8,687 lei;

• between 8,601 lei – 10,000 lei, it is indexed by 1%, not exceeding 10,000 lei.

Minimum wage: 200 lei will be calculated for pension

In 2023, the minimum salary will be 3,000 lei, of which 200 lei will be tax-free.

Well, according to the cited sources, when calculating the monthly point, an amount of 200 lei/month is calculated, which is given as a benefit. Thus, the amount of the pension will be 3,000 lei.

Next comes 200 lei, exempt from salary from 3,000 to 5,000 lei

Work is underway on a project according to which employers who raise wages by 450 lei will be exempted from taxes by 200 lei.

“This will be a voluntary event. This will be for salaries from 3,000 to 5,000 lei. Those who increase their salary by 450 will have 200 lei tax-free,” the sources said.

Changes to the Decree on tax increases in mid-December

As we know, the Tax Increase Decree (OG 16/2022) from January 1 increases property taxes several times, lowers the threshold for micro-enterprises, etc.

The amendments have been passed in parliament, but because the project has been criticized in the CCR, they cannot be sent to Iohannis.

Depending on the decision of the Constitutional Court, the Government will know whether it needs to take amendments from the Parliament and prepare a new regulation. Theoretically, this will happen sometime on December 14-15, but it depends on what the Central Committee says.

What changes will take place if the KKR rejects the draft of the parliament on additional payments for part-time work

1. No more property tax increases from 2023 and incentives for energy efficient buildings

One of the main changes concerns the property tax, which would increase several times with the introduction of the notary grid.

The only innovation concerns the extension of the term. Thus, instead of applying the grid of notaries from 2023, it will be in effect from 2025. Until then, there is still time and, probably, we will have another decision.

Also, local councils will be able to provide benefits or reduce taxes for new or reconstructed residential buildings, the owners of which carry out work to improve energy efficiency at their own expense, for the installation of electricity production systems from photovoltaic sources or for certified ecological systems for the collection and treatment of wastewater for own consumption.

2. Clarification regarding interim dividends

Many entrepreneurs and taxpayers do not know what will happen to the interim dividends already distributed in 2022, considering that from January 1, 2023, the tax will increase from 5% to 8%.

Well, an explanation will come. Thus, for those distributed during the year, the tax remains 5%. The only difference is for the fourth quarter of 2022, which will be distributed in 2023, for which the 8% rate will apply.

3. Tax consultants will also benefit from the micro-business regime from 2023

The amendment to the Decree also applies to tax consultants, who will be able to use the micro-business regime from 2023.

It is about accounting and financial audit activities, consulting in the tax field.

We will remind, according to the version of the Official Gazette, they are excluded.

4. Threshold of 1 million euros for micro-enterprises

As for the micro-threshold, it is known that from January 1 it will be reduced to 500,000 euros.

However, due to an amendment in the parliament, it is stated that those companies that do not exceed 1 million euros by the end of this year will remain micro-enterprises in 2023.

If they subsequently exceed the new limit, they will be subject to income tax.

5. Changes in gambling taxation

Another amendment provides that the tax is payable in case of income received as a result of participation in games of chance, typical of casinos, poker clubs, slot machines and lottery tickets, the value of which exceeds the tax-free limit of 1,000 lei (previously it was 66,750 lei) determined by using a scale on each gross income received by the participant, and the amount of 30 lei is deducted from the obtained result.

In OG 16/2022, the scale is as follows:

• up to 10,000 inclusive – 3%

• over 10,000-66,750 inclusive – 300 + 20% for what exceeds the amount of 10,000

• over 66,750 – 11,650 + 40% for what exceeds the amount of 66,750

“Checking compliance with the tax-free ceiling is carried out for each payout, regardless of the type of game from which the relevant income was received. If the gross income received for each payout exceeds the non-taxable limit of 1,000 lei inclusively, taxation is carried out separately from the income received from participation in other types of gambling,” the amendment reads.

These changes will enter into force next month after publication in the Official Gazette.

6. POS for companies that have cash receipts over 50,000 lei

Legal entities that carry out retail and wholesale trade, as well as those that carry out service activities that realize cash receipts in the amount of more than 50,000 lei during the year, are obliged to accept debit, credit or prepaid cards as a means of payment, via POS – terminals and/or other modern acceptance solutions, including programs that facilitate the acceptance of electronic payments.

The obligation of legal entities to accept debit, credit or prepaid cards through a POS terminal and/or other modern acceptance solutions starts from the quarter following the quarter in which cash receipts during the relevant year exceeded the threshold of 50,000 lei.

If the specified threshold has not been exceeded for 2 consecutive years, designated entities are no longer required to accept debit, credit or prepaid cards via a POS terminal and/or other modern acceptance solutions, but may continue to accept these payment instruments.

After these changes are released by the president, we will prepare a text that will include all the tax changes that will take effect from 2023.

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