President Klaus Iohannis promulgated the law approving Ordinance 16 (tax increase) as amended by Parliament. It will appear in the Official Gazette under the title Law 370/2022.

After the publication in the Official Gazette, we will have the following news, compared to what was introduced in the Fiscal Code OG 16/2022. We are restoring the recently published material.

1. The property tax will not increase from 2023

One of the main changes adopted by the parliament concerns the property tax, which would increase several times due to the introduction of the notary scale.

The novation consists in extending 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 solution.

2. Tax exemption for energy efficient buildings

Local councils will be able to grant benefits or reduce taxes for new or renovated 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 certificates of environmental systems for the collection and treatment of wastewater for own consumption.

3. Clarification regarding interim dividends

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

Well, he made a clarification. 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.

4. 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 remind you that according to the version in the Official Gazette OG 16/2022, they are excluded.

5. 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.

6. 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%

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

• more than 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.

7. POS for companies with 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.

Also read: 12 tax changes coming into effect on January 1, 2023: from 8% tax on dividends to an increase in VAT on restaurants and sugary drinks

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