Form 112 has been amended by ANAF to reflect the new taxation rules to be applied from November to the taxation of salaries in IT, construction and the agri-food sector. The new form is already available in electronic format and must be submitted from this month itself. It is worth pointing out that the tax deadlines in December are earlier compared to the other months of the year, so all companies must submit all Forms and make tax payments to the state earlier than usual.

ANAF order no. 1994/2023 amends Form 112, used by employers to declare salary taxes. The Form has been updated to reflect legislative changes applicable from November 2023 on income from the IT, construction and agri-food sectors.

The new form must be used to declare the incomes realized starting from November 2023, with the deadline for declaring obligations until December 21, 2023.

ANAF also published the updated electronic version of the Form on December 13, so employers can already start completing and submitting it. The new form is available here (https://static.anaf.ro/static/10/Anaf/Declaratii_R/112.html).

We remind you that the changes contained in the new form allow the reflection of some important news regarding the taxation of salaries in IT, construction and the agri-food sector, among which:

• exemption from income tax from salaries for IT employees, valid up to a ceiling of 10,000 lei, for a single employer, at the base place where they carry out their activity;
• employees in IT, construction, agriculture and the food industry do not have the obligation to pay the 3.75% contribution, representing the privately administered pension contribution (it is the right of the employee to opt for the payment of this contribution in these fields of activity);
• the obligation to pay the health contribution was introduced for employees in the field of construction, agriculture and the food industry.

Also, with the new changes, form 112 will allow, from 2024, the Forms of taxes related to the income of domestic providers, under the conditions that the special tax regime applicable to these categories of workers will also enter into force next year. For domestic providers, the taxes will be withheld and declared by the employment agencies also through Form 112.

Fiscal deadlines advanced in December

Traditionally, many tax returns are submitted monthly by the 25th. However, in December, the deadlines are adjusted due to the Christmas (December 25 and 26) and New Year (January 1 and 2) holidays, which are not work is being done. Thus, the deadline for submitting tax returns is set for December 21, 2023. The deadline covers, among other things, forms 100, 112, 300 and all related payments (including VAT and salary taxes).

It is crucial for companies to meet these special deadlines to avoid penalties. We recommend checking and preparing documentation in advance to ensure timely submission of all returns and timely completion of all tax payments to the state. It’s also good to consider non-working days around holidays, which can impact workflow and lead times.

The advance of tax deadlines in December concerns several essential forms:

• Form 100: Used for the monthly reporting of personal income tax, it includes various categories of income (dividends, interest, prizes, etc.), as well as the tax on income obtained from Romania by non-residents.
• Form 112: This refers to the reporting of tax and social contributions for income from wages, being particularly important for employers.
• Form 224: Mandatory for natural persons who obtain income from wages from employers without headquarters in Romania and who owe social contributions.
• Form 300 (VAT Form) and Form 301 (special VAT Form): These are required for taxable persons registered for VAT purposes.
• Form 307: It refers to the adjustment or regularization of VAT.
• Form 311: Used by persons with a canceled VAT code who carry out chargeable transactions.

It is worth mentioning that the submission of the recapitulative Form regarding intra-community supplies/acquisitions/supplies – Form 390 VIES can be done until Wednesday, December 27, 2023.

Article published in Business-Mark