Romania

The suspension of the application of the exemption from salary income tax and social contributions for the amounts granted by employers for early education of employees’ children has been extended as of 1 April 2021 until 31 December 2022.

Starting from August 2022, the salary income and salary-related income obtained by individuals conducting activities based on an individual employment contract concluded for a period of 12 months with Romanian legal entities conducting seasonal activities under Law no. 170/2016 are no longer exempt from income tax.

Starting from August 2022, the fiscal facilities for the construction industry are limited to gross salary and salary assimilated income of 10,000 Romanian lei (RON) as compared with RON 30,000, which was the previous cap. Additionally, some of the conditions that need to be fulfilled by the employer for applying such fiscal facilities suffered some amendments.

Similar to the construction industry, some fiscal facilities were introduced to the food and agriculture industry, subject to the fulfilment of certain conditions. In brief, no income tax and reduced social contributions are due for salary and salary assimilated income up to a limit currently of RON 10,000 gross.