Law no. 34/2023 introduces certain tax incentives in connection with subscriptions for the use of sports facilities

On 12 January 2023, the Official Gazette published Law no. 34/ 2023 for the amendment and completion of Law no. 227/2015 regarding the Fiscal Code.

The law governs the tax regime applicable to the value of subscriptions for the use of sports facilities, in order to practice sport and physical education for maintenance, prophylactic or therapeutic purposes, within the limit of the equivalent in RON of the amount of EUR 400 per year, for each employee.

We note that subscriptions must be made only by operators with the following NACE codes:

• NACE 9311- Activities of sports bases
• NACE 9312 - Activities of sports clubs
• NACE 9313 - Activities of fitness centers

Thus, within the above-mentioned limit, the law provides for the following:

• the possibility of deducting the value of sports subscriptions when determining the annual net income from self-employment, determined under the real system;
• deducting these costs, when incurred by employees, from the gross wage income when determining the taxable base;
• the value of sports memberships paid by employers for their employees may be taken into account when determining the employee's extra pay salary package, which is not subject to income tax and social security contributions, and which in aggregate must not exceed 33% of the basic salary.

The facilities for employees mentioned above are applicable with the related income of February 2023.

For more details regarding the above, please consult the Official Gazette no. 36 of 12 January 2022.

The EY team is available for further details on the above.