LEGE no. 181 181 of 12 November 1997 on the imposition of income from the rental of real
ISSUER
PARLIAMENT
Published in OFFICIAL MONITOR no. 314 314 of 17 November 1997
The Romanian Parliament adopts this law + Article 1 On incomes made by individuals from rentals and subrentals of buildings, land and rooms furnished or unfurnished, on a permanent or seasonal basis, directly or through travel agencies or through real estate agencies, a tax is applied % annually. + Article 2 If it does not exceed 240,000 lei, the annual income from rents is not taxed. + Article 3 The taxable annual income, arising from rents, is determined by the decrease in the amount of the annual rent of the tax on the buildings or shares of them, rented or subleased, and the tax on land related to the rented space or sublet, as well as administrative expenses. For the rental income and subrentals of rooms furnished through the travel agencies the commission retained by these agencies is deducted. + Article 4 Natural persons making investments in respect of buildings, land or part-parts thereof, as well as furnished or unfurnished rooms which they rent or sublet, for the purpose of preparing for rent or sublease, increasing comfort-water, sewerage, heating, gas, electricity, telephone, equipment with electronic and household appliances, furniture, air conditioning-, improvement of thermal insulation, reduction of energy consumption, reduction pollution of any kind, benefits from the possibility of deducting from rent a the full costs of these investments over a maximum period of 5 years. The same facility is granted to those who make investments related to the obligations art. 28 28 of Law no. 114/1996 . Deduction provided in par. 1 will be made only on the basis of legal supporting documents. In the legal supporting documents will be explicitly mentioned, each in part, all the raw materials, materials, products and services used within the investments, as well as their prices, which must be in line with those of the market at time of purchase The start of the investment is announced in writing to the local tax authorities, the deduction to be made from the month immediately following the one in which the notification was made. + Article 5 The rent tax is established and collected, by the local tax authorities, monthly, quarterly or annually, the option being expressed by the lessee at the time of registration of the lease or sublease to the tax authorities local. The regularization of the rent tax is made, for individuals, on the basis of statement of the lessee, at the conclusion of each financial year. Travel agencies calculate and retain the rent tax on the occasion of each payment to the owner and turn it to the local tax authorities at the legal deadlines. + Article 6 Rentals or subleases are made mandatory on the basis of a contract signed by the parties. In the rental or sublease contract must be stipulated the exact value of the rent or, in the case of a rent paid in kind, the money assessment of it, the rules of modification and the changes of the rent, the payment method. In the case of rental housing will be taken into account the provisions Law no. 114/1996 and of the Methodological Norms for the implementation of the provisions Home Law no. 114/1996 ,, approved by Government Decision no. 446/1997 , published in the Official Gazette of Romania, Part I, no. 203 203 of 21 August 1997. All changes to the provisions of the rental or sublease contract are made as annexes to the contract, which will be an integral part of it. All rental or sublease agreements and their annexes shall be registered with the local tax authorities within 15 days from the date of signature. The termination of the lease or sublease shall be announced to the local tax authorities within a maximum of 15 days. The calculation of the taxable annual income, arising from rents, is based on the provisions of the lease or sublease and its annexes, with the application of the provisions of art. 3 3 and 4 of this law. The evading from the payment of tax obligations, in respect of taxable annual income, arising from rents, in whole or in part, is punishable according to the provisions of Law no. 87/1994 to combat tax evasion and other legal provisions in force. + Article 7 The provisions of this Law shall apply from 1 January 1998. On the same date, any provisions contrary to this law shall be repealed. This law was adopted by the Chamber of Deputies at the meeting of October 20, 1997, in compliance with the provisions of 74 74 para. (1) of the Romanian Constitution. p. CHAMBER OF DEPUTIES PRESIDENT ANDREI IOAN CHILIMAN This law was adopted by the Senate at the meeting of October 21, 1997, in compliance with the provisions of art 74 74 para. (1) of the Romanian Constitution. p. SENATE PRESIDENT CRISTIAN DUMITRESCU ----------------
