Law No. 246 of 21 December 1998 approving the Emergency Ordinance of Government No. 85/1997 concerning the taxation of income derived by individuals published in PARLIAMENT ISSUING the OFFICIAL GAZETTE nr. 495 of 22 December 1998, the Romanian Parliament adopts this law.
The sole article approving Government Emergency Ordinance nr. 85 of 23 December 1997 concerning taxation of income derived by individuals, as published in the Official Gazette of Romania, part I, no. 378 of 29 December 1997, with the following amendments and supplements: 1. In article 2, paragraph 1, letters c), (d)), g), (h))) and I) will read as follows: "(c)) on the basis of revenue contracts, property management, concession, mandate and assignment;
(d) revenue from the sale), in any form, under the law of copyright or rights related to copyright, including any person who has acquired such a right by inheritance; " ..
"g) revenue from the execution of works and provision of services for agriculture, as well as in organizing activity in agricultural associations having no legal personality, except as provided in article 13. 3 (a). m);
h) revenue from sports activities carried out independently, as well as organizing fun artistic activities, or sports;
I) awards and any winnings in money or in kind, awarded by a taxable entity, which exceed the sum of 3,000,000 lei, except those subject to the payroll tax; " ..
"it) other income on an ongoing basis or by chance, nominated to head. V of this emergency Ordinance; "
2. In article 2 (1), subparagraph (j)) is repealed.
3. In article 3, points (a), (b)))))))), m, l) and n) will read as follows: ' a) interest on State securities or any other title, as well as those of sight deposits and term deposits to the banks, credit unions, mutual aid, and other financial and credit institutions;
(b)) or the property received sums as aid, donation, inheritance, sponsorship and patronage, according to law, with the exceptions mentioned in this emergency Ordinance; ". ..
"d) amounts are payable under contracts of insurance of goods, people and civil liability;
e) any pensions and grants received under the social security system, State allowances for children, as well as additional allowance for families with children;
f) scholarships awarded to those that follow any form of schooling or professional training in institutionalised forms; "" I) revenue of war veterans, war widows, widows of nerecăsătorite war veterans and widows nerecăsătorite of Heroes-martyrs you December 1989 Romanian Revolution, from practicing on their own and singular has a trade or profession, as well as rental of a single housing, with the exception of income obtained exclusively from trade activity; "
l) proceeds from securities trading, according to the classification of the National Commission on securities from Romania;
m) revenue from the sale of agricultural products, obtained from own production, from raising livestock and poultry, from selling products from forestry, fish farming, beekeeping and sericicultura in natural condition, as well as from the sale of products from the spontaneous flora and fauna;
n) income of individuals aged over 65 years old-women and 70 years old-men-degree invalids and disabled people disability degree I allocated, revenues from practicing on their own and singular has a trade or profession, except for income obtained exclusively from trade activity. "
4. In article 3, after the letter n) letters are inserted) and p), with the following contents: ' a) prizes of athletes, coaches and technicians in order to achieve the following objectives: high performance-ranking catwalk premiere of European and World Championships, Olympic Games;
-the qualification and participation in European Championships, world and Olympic Games;
p) payoffs people culture, science and art festivals or at other international competitions. "
5. Article 5 shall read as follows: Art. 5.-Taxpayers referred to in art. 1, according to the law, authorized to be made on the basis of actual income, their taxable income as the difference between total revenue received, in cash and in kind, from the work done and the costs incurred for incomes, including premiums paid for property insurance, liability insurance and accident insurance for employed persons, related to work carried out on the basis of supporting documents. "
6. In article 7 (1), subparagraphs (d) and (f))) will read as follows: "(d) the sponsorship expenses carried) exceeding the limit laid down by the law on sponsorship No. 32/1994, as amended; ".
' f) expenditure incurred over the limit of 10% of the proceeds for delegation and deployment, including means of transport, individual taxpayer's property when they are used in order to achieve income as well as maintenance expenses, rent, and telephone, when the activity is carried out in own house; "
7. In article 8, paragraph (1) shall read as follows: Art. 8.-(1) skilled craftsmen — Internet service or perform works in the singular or in the way of family associations in workshops to be made stable on the basis of annual income rules, which will be established by decision of the county councils or the General Council of Bucharest. The rules of income shall be reduced as follows: (a)) 40% for men between 60 and 65 years of age and women between 55 and 60 years of age;
b) 50% for men between 65 and 70 years of age and for women between 60 and 65 years old;
c) 50% for people who have the status of an employee, the employee with an employment contract, with the entire rule. For family associations apply a coefficient to increase the income of 50% for each Member. "
8. Article 9 shall read as follows: Art. 9. Reductions and exemptions-granted according to the provisions of this Ordinance, shall apply as from the year following the year in which they turn age limits taxpayers referred to, respectively, next month of submission of supporting documents for disabled people and people with disabilities. "
9. Article 10 shall read as follows: Art. 10.-Taxpayers carrying on activity exclusively Peddler and the volante, the carriers with vehicles with animal traction and ambulant skilled craftsmen — Internet are subject to the payment of a flat-rate tax on a quarterly basis, established by a decree of the county councils or the General Bucharest City Council. "
10. In article 13, paragraph (1) shall read as follows: Art. 13. — (1) the taxpayers to be made on the basis of actual income are required to submit annual statement for income tax in the previous fiscal year, not later than 31 January of each fiscal year. "
11. In article 14, paragraph (3) shall read as follows: "(3) In the case of an increase or reduction of more than 20% of the income achieved during the year, tax authorities will recalculate, once per year, during the semester, provisional tax, depending on the actual revenue achieved from the beginning of year, repartizand tax result in recalculation on payment periods."
12. In article 16, paragraph 1 shall read as follows: Art. 16. — (1) in the case of the finding by the tax authorities of some deviations from the law in force, on the nedeclararii line, the highlighting and unreal Declaration of incomes and expenses, for the purpose of avoiding tax, or best neconducerii binding as provided by law, in addition to the sanctions provided for by the legislation in force concerning deviations from the financial discipline , tax authorities will proceed to taxation, ex officio, on the basis of the methods laid down in the instructions referred to in art. 30 paragraph 2. (2) of this emergency Ordinance, and in the event of repeated infringements or unjustified in the case of possession of authorisation, by the lack of activity of taxpayers over a period of 6 months, tax authorities will proceed to forfeiture of permits and their advancement in the procedure of urgency, the authorities which they have issued, for the purpose of cancellation. "
13. The title of chapter III shall read as follows: "the tax on the income from the sale, in any form of copyright or rights related to copyright, including any persons who acquired such rights through legacy" 14. In article 17, paragraph (1) shall read as follows: Art. 17. — (1) the income from the use or exploitation of a work of intellectual creation times of benefit, including those that arise from compensatory remuneration for private copying or the suite, are subject to annual taxation of taxable unit or, where appropriate, through collecting societies established according to law. "
15. In article 18, paragraph 1, subparagraph (c)) shall read as follows: "(c) 35%) in the case of scientific and artistic works and performances, irrespective of gender, except in the case of works referred to. the a and b)); "
16. In article 18, paragraph 1, letter e) is repealed.
17. In article 18, paragraph (2) is repealed.
18. In article 18, paragraphs (3) and (4) shall read as follows: "(3) in the case of works of monumental art, at which actual expenditure in excess of the quota referred to in paragraph 1, forfetara. (1) (a). the taxable annual income) shall be determined by subtracting from the gross income of such expenditure, on the basis of supporting documents.
(4) the quotas provided for above shall not apply if the heirs. "
19. The title of chapter IV shall read as follows: "tax on income from rentals, from subinchirieri, from the establishment of the right of usufruct, use or main, as well as contracts and assignments". Article 22 shall read as follows: Art. 22.-revenue from individuals, either permanently or temporarily, directly or through specialised businesses, from car hire, from subinchirieri, from the establishment of the right of usufruct, use or main, and contracts of mandate and shall be subject to taxation in accordance with the assignment of this emergency Ordinance. "
21. Article 24 shall read as follows: Art. 24. — (1) the taxable Annual Income is determined by subtracting from the income received within one year of taxes and levies due under the law in respect of goods transferred towards use, which shall be borne by the owner or another there have been legal keeper, with the exception of the tax established by this emergency Ordinance, the Commission retained by intermediaries and insurance premiums paid for common use. snapped towards
(2) in the case of rental and subinchirierilor rooms, it may deduct a forfetara share of 20% of the income remaining after deduction of the expenses mentioned in paragraph 1. (1) (3) Tax set tax for the current year shall be paid quarterly, in four equal installments, up to 15 including the last month of each quarter. "
22. In article 26, the introductory part of paragraph 1 shall read as follows: Art. 26. — (1) businesses, public institutions and any other entities are obliged to calculate, withhold and pay tax on the gross amounts payable to individuals for services rendered and executed by them, as well as for any activity carried out in the establishment where the consideration of the individual beneficiary, through the application of the following odds: "23. In article 26, paragraph 2, letter a) is repealed.
24. In article 26, paragraph 2, subparagraph (b)) shall read as follows: "b) 15% in the case of those who deliver the goods or sell the goods on consignment, except for goods from their own inventory of individual deponente;"
25. In article 27, paragraph (1) shall read as follows: Art. 27. — (1) the amounts withheld as tax represents tax permanently and shall be transferred to the budget of the local Government on whose territory healthcare payers of income referred to in article 1. 26 have their domicile or registered office. Paying tax is made until the 15th day of the month following payment inclusively. "
26. In article 27, paragraph (2) is repealed.
27. In article 28, paragraph (1) shall read as follows: Art. 28. — (1) the income, other than those made on the basis of an individual contract of employment law, obtained by athletes and other categories of people, professionals or amateurs, other than those referred to in article 1. 5, achieved by means of legal persons as a result of participation in shows, competitions, Championships and other events, with the exception of awards, shall be taxed with the quotas referred to in article 1. 26 para. (1)."
28. In article 29, paragraph (1) shall read as follows: Art. 29. — (1) the taxpayers, individuals, income from prizes and any earnings of the same nature are required to pay tax as calculated by applying the quota of 10% over the amount exceeding non-taxable ceiling referred to in article. 2 (2). (1) (a). I). "
29. In article 29, paragraph 2 shall be inserted in paragraph 3 with the following contents: "(3) in the case of revenue through revenue from the same repeated taxable income unit, with the exceptions established in this emergency Ordinance, the tax is calculated by aggregating the income achieved during the same months, deducandu-se PAYE payments."
30. In article 30, paragraph (1) shall read as follows: Art. 30. — (1) the local councils and regions may, on a case by case basis, according to the law, for duly justified reasons, phased over pay in 12 monthly installments, delays payment until the end of the calendar year. "
This law was adopted by the Senate at its meeting on 16 November 1998, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
p. Senate CHAIRMAN MIRCEA IONESCU-QUINTUS this law was adopted by the Chamber of deputies at its meeting on 25 November 1998, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
p. CHAMBER of DEPUTIES PRESIDENT, Andrew John CHILIMAN — — — — — — — — — — — — — — — —