√ Reclassification of income from gift vouchers, nursery vouchers and value tickets as salary and salary-like income and imposition of additional obligations
On Monday 27 February 2023, Law No 43/2023 on the annulment of certain tax liabilities was published in the Official Gazette, which annuls the differences in main tax liabilities and/or accessory tax liabilities established by the fiscal authorities by tax decision as a result of the reclassification of certain income.
The initial situation
The problem faced by a significant part of the local business sector was generated by the practice of some companies to grant gift vouchers, nursery vouchers and value tickets not only to their own employees, but also to employees of third companies, usually business partners, for marketing purposes, market research, promotion in existing or new markets, protocol or advertising and publicity expenses. During the inspections carried out, the fiscal authorities concluded in many cases that these vouchers were considered as salary and salary-like income, which led to the issuance of several tax decision imposing additional tax obligations, as well as accessory obligations (interest and penalties), in the area of social contributions, following the reclassification of income as salary.
Tax amnesty
Following a clarification made by the legislative body through Emergency Ordinance No 130/2021, the need arose to apply a tax amnesty for situations prior to the publication of the Ordinance. Law no. 43/2023 was thus passed, which annuls the differences in main tax liabilities and/or accessory tax liabilities established by the fiscal authorities, following the reclassification of income from gift vouchers, nursery vouchers and value tickets obtained by individuals from persons other than employers from the category of income from other sources to the category of salaries and salary-like income. This annulment applies to situations where gift vouchers, nursery vouchers and value tickets have been granted by business partners to employers for distribution to their employees on behalf of the partners.
Implications and consequences
The law stipulates that the differences in tax liabilities to be annulled are those relating to the periods from which Law No. 193/2006 on the granting of gift vouchers and nursery vouchers and Law No. 165/2018 on the granting of value tickets came into force, i.e. 26 May 2006 and 1 January 2019, and until 31 December 2020. The annulment of the tax decisions issued involves 3 situations:
- In the case of those that have been extinguished by payment, offsetting, enforcement or payment in lieu, the amounts will be refunded to the taxpayer upon request within the prescription period;
- In the case of those that have not been extinguished, they will be cancelled automatically or at the taxpayer’s request, and a cancellation decision will be issued;
- In the case of those that have not been communicated, they will be revoked and the tax obligations will be removed from the records of the fiscal authorities.
Within 30 days from the date of entry into force of this law, the President of National Agency for Fiscal Administration (in Romanian: Agenția Națională de Administrare Fiscală – ANAF) will issue an Order on the procedure for applying the law, as well as the modalities for refunding the amounts.
RTPR’s tax litigation team is ready to assist you in the process of refunding the amounts paid or in the case of requesting the cancellation of tax decisions. We assist taxpayers both in tax inspections and before administrative and judicial courts, and we are also recognised by international directories.
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