The new declaration form D112 on withholding agents for payroll taxes, contributions and similar items also requires from the January 2023 period the declaration of the method of taxation of non-wage benefits, as it is necessary to keep very accurate records of taxable and non-taxable benefits granted to employees.

Some rules/precisions about the new Form 112 and the declaration of benefits in kind and similar income apply:

1. There are 8 types of benefits whose inclusion in the cap of 33% of base salary will occur monthly:

1.1 Additional benefits received by employees under the mobility clause

1.2. The value of employer-provided food

1.3 Housing and rent for employer-provided housing/accommodation

1.4 The consideration for tourist and/or curative services, including transportation, during the leave period

1.5 Contributions to a voluntary pension fund

1.6 Voluntary health insurance premiums

1.7 Amounts granted to employees who telecommute

1.8 The counter value of season tickets for the use of sports facilities.

2. The order in which the income referred to in item 1 is included in the monthly ceiling of 33% shall be determined by the employer. Such order may be established by the internal regulations.

3. What salary is taken into account when applying the 33% rate?

According to OG 16/2022, the 33% rate applies to the base salary corresponding to the job performed.

Base salary is the labor salary dependent on the employment contract.

Article 160 of the Labor Code stipulates that salary includes basic salary, allowances, increments and other increases.

4. Private health insurance is included in the ceiling of 33% and is filled in for the non-taxable value in D112 on line 8.4.7. Voluntary health insurance premiums, as well as medical services provided in the form of a subscription, paid by the employer for its employees, so that at the level of the year the equivalent in lei of the sum of 400 euros is not exceeded, per person (E3_71).

5. The per diem (travel allowance) granted is declared as of January 2023 in D 112, separated into taxable and non-taxable per diem.

In conclusion, the ANAF Revenue Agency of Romania through this new amendment to Form 112 will be able to check for each taxpayer whether there is income assimilated to wages, its nature, its taxability and non-taxability so that it can proceed with the selective lists to the merit checks.

We suggest checking if there are any positions that fall under the summarized list and send a communication to your payroll consultant for each individual position regarding employees.