Law No. 181 Of 12 November 1997 Regarding The Taxation Of Income From The Rental Of Real Estate

Original Language Title:  LEGE nr. 181 din 12 noiembrie 1997 privind impunerea veniturilor realizate din închirierea de bunuri imobile

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Law No. 181 of 12 November 1997 regarding the taxation of income from the rental of real estate, published in PARLIAMENT ISSUING the OFFICIAL GAZETTE nr. 314 of 17 November 1997, the Romanian Parliament adopts this law.


Article 1 The income made by individuals from rentals and subinchirieri of buildings, land and cosily furnished, unfurnished or permanently or seasonally, either directly or through travel agencies or through real estate agencies, an annual tax of 18%.


Article 2 If not exceeds 240,000 lei, the annual income from rents is not taxed.


Article 3 the taxable Annual Income from rent, shall be determined by subtracting from the annual rental value of the property tax on buildings or shares thereof, rented or subinchiriate, and related land tax or rent space subinchiriat, as well as administrative costs.
For income from rentals and subinchirieri rooms through travel agencies reduced the fee retained by these agencies.


Article 4 individuals who make investments in terms of buildings, land or shares thereof, as well as rooms furnished or unfurnished on freighters or subinchiriaza, in order to prepare for enlargement or subinchiriere, the degree of comfort-installation of water, sewage, heating, gas, electricity, telephone, electronic equipment and furniture, air-conditioning, CE-, improving thermal insulation, reducing energy consumption pollution reduction, of any kind, is entitled to benefit from the possibility to deduct the rent costs of these investments over a maximum period of five years. The same facility is granted to those who make the investments related to the obligations provided for in article 10. 28 of law No. 114/1996.
The deduction referred to in paragraph 1. 1 will be done only on the basis of supporting documents. The supporting documents shall be explicitly legal, each one, all the raw materials, materials, products and services used in the investment and their prices, which must be consistent with those of the market at the time of purchase. Start of investment announced in writing to the local tax authorities, the deduction will be made in the month immediately following the month in which it has been notified.


Article 5 tax on rent is established and shall be levied by the local tax authorities, monthly, quarterly or yearly option being expressed by the lessee in the lease contract or the local tax authorities subinchiriere.
Settlement of tax on rent is made for individuals, on the basis of the Declaration by the lessee at the end of each financial year.
Travel agencies calculated on rent tax and retained on the occasion of each payment by the owner and it turns on local tax organs in due time.


Article 6 Leases or subinchirierile shall be made mandatory under a contract signed by the parties. In the lease or subinchiriere shall be provided for the exact amount of the rent or, in the case of rent paid in nature, its valuation in money, rules changes and amendments to the rent, payment mode. Rental housing will keep into account the provisions of law No. 114/1996 and the detailed procedures for the implementation of housing law No. 114/1996, approved by Government decision No. 446/1997 published in the Official Gazette of Romania, part I, no. 203 of 21 august 1997. Any changes to the provisions of the lease or subinchiriere are made as annexes to the contract, which will be an integral part thereof.
All leases or subinchiriere and their annexes shall be registered with the local tax authorities within 15 days from the date of signing. Termination of tenancy or subinchiriere local tax organs to announce within 15 days.
The calculation of the taxable annual income derived from rents, is based on the provisions of the lease or subinchiriere and its annexes, with the provisions of art. 3 and 4 of this law.
Evasion of the payment of tax in respect of taxable annual revenues from rents, in whole or in part, shall be punished according to law No. 87/1994 for fighting tax evasion and other legal provisions in force.


Article 7 the provisions of this law shall apply with effect from 1 January 1998.
On the same date, any provisions contrary to this law are hereby repealed.
This law was adopted by the Chamber of deputies at its meeting of 20 October 1997, in compliance with the provisions of art. 74 para. (1) of the Constitution of Romania.
p. CHAMBER of DEPUTIES PRESIDENT ANDREW JOHN CHILIMAN this law was adopted by the Senate at its meeting on 21 October 1997, in compliance with the provisions of art. 74 para. (1) of the Constitution of Romania.
p. SENATE CRISTIAN DUMITRESCU-— — — — — — — — — — — — — — —