Article 40 of Decree-Law No. 48/2023 increases, for 2023, the non-taxable threshold of fringe benefits up to €3,000.00 Euro for employees with at least one dependent child for tax purposes. Such benefits may also be granted only to certain employees at the employer’s discretion.

For other employees, without at least one dependent child for tax purposes, the threshold of Euro 258.23 provided for in Article 51 co. 3 of the Consolidated Income Tax Act remains in force.

FISCALLY DEPENDENT CHILDREN

Following Article 12 co. 2 of the TUIR Children are fiscally dependent in case:

–   they are under 24 years of age and have received a total annual income lower than Euro 4.000,00;

–  they are over 24 years of age and have received a total annual income higher than EUR 2.840,51.

EXTENSION TO HOUSEHOLDS

In the €3,000.00 threshold are also included the amounts disbursed or reimbursed to the above-mentioned employees by their employers for the payment of household utilities relating to:

– integrated water supply;

– electricity;

– natural gas.

DECLARATION TO THE EMPLOYER

The employee must declare to the employer the right to make use of the higher threshold, indicating the tax codes of the dependent children. (Attached hereto kindly find a self-statement to fulfil).

Annex_25.05.2023

Kindly note:

– DL 48/2023 is currently being converted into law and its provisions are therefore subject to amendments and additions.

– We are still waiting for a note from the Revenue Agency clarifying whether the new provisions on the non-taxability of fringe benefits up to Euro 3,000.00 can also be extended to recipients of income assimilated to employees.

In case of further news/clarifications please do not hesitate to contact us here