THE APPLICATION OF FISCAL FACILITIES REGARDING THE REMUNERATION IN THE ROMANIAN CONSTRUCTION SECTOR, STARTING IN 2019.

Starting with January 1, 2019, in Romania, the salary in construction has undergone significant changes. In the present paper we propose to analyze how these changes are implemented in practice for this year, 2019, revealing those situations leading to abnormalities, namely the obligation to establish a differentiated gross minimum wage for entities in the construction sector, the application of facilities to entities that cumulatively fulfill the conditions established by legislation in comparison with entities which, on the one hand, do not carry out construction activities and, on the other hand, although they carry out construction activities, are not entitled to apply those facilities. Also, in July 2019 two variants of calculation apply, respectively between 1 - 21 July 2019 and 22 - 31 July 2019. The fiscal facilities include: exemption from tax on income from wages and social security contributions, respectively the reduction of the social insurance contribution and the contribution of labor insurers. These abnormalities are mainly caused by the establishment of a minimum wage, by about 44% higher than that imposed on the other entities in Romania, for all the employees of the entities in the construction sector, and on the other hand, the granting of important fiscal facilities regarding the salary in construction conditional upon the cumulative fulfillment of three conditions, amended as of July 22, 2019. The analysis method is the comparison, aiming to highlight, for salaries ranging between 30,000 lei and the minimum wage, the effect of applying / not applying facilities to employees and employers in the construction sector. We will also present through a few examples the new way of applying the fiscal facilities in July 2019, compared to those in force until July 21, 2019. [ABSTRACT FROM AUTHOR]