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Law No. 246 Of 21 December 1998 Approving Government Emergency Ordinance Nr. 85/1997 Concerning The Taxation Of Income Derived By Individuals

Original Language Title:  LEGE nr. 246 din 21 decembrie 1998 pentru aprobarea Ordonanţei de urgenţă a Guvernului nr. 85/1997 privind impunerea veniturilor realizate de persoanele fizice

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LEGE no. 246 246 of 21 December 1998 for approval Government Emergency Ordinance no. 85/1997 on the imposition of income by individuals
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 495 495 of 22 December 1998



The Romanian Parliament adopts this law + Article UNIC Approval Government Emergency Ordinance no. 85 85 of 23 December 1997 on the imposition of income made by individuals, published in the Official Gazette of Romania, Part I, no. 378 of 29 December 1997, with the following amendments and additions: 1. In Article 2 (1), points c), d), g), h), i) and l) shall read as follows: " c) the revenues made on the basis of contracts of management, mandate, concession and assignment; d) the income made from the valorization, in any form, according to the law, of the copyright or of the rights related to the copyright, including by any persons who have acquired this right by inheritance; " ................................................................................ ................................................................................ .. " g) incomes made from the execution of works and services for agriculture, as well as from the organization of activity in agricultural associations without legal personality, except for those provided in art. 3 lit. m); h) incomes made from sports activities carried out independently, as well as from the organization of artistic, fun or sports activities; i) prizes and any gains in money or in kind, granted by a paying entity, exceeding the amount of 3,000,000 lei, except those subject to payroll tax; " ................................................................................ ................................................................................ .................... "" l) other income made on a permanent or incidental basis, nominated to the head. V of this Emergency Ordinance; ' 2. Article 2 (1), point j) shall be repealed. 3. in Article 3, points a), b), d), e), f), i), l), m) and n) shall read as follows: "" a) the interest on government securities or any other title, as well as those related to deposits on sight and in term deposits with banks, credit unions, mutual aid houses and other financial and credit institutions; b) the amounts or goods received as aid, donation, inheritance, sponsorship and mecenat, according to the law, with the exceptions mentioned in this emergency ordinance; " ................................................................................ .................... " d) the amounts that are received under the insurance contracts of goods, persons and civil liability; e) pensions of any kind and aid received under the social security system, state child benefits, as well as the additional allowance for families with children; f) scholarships awarded to those who follow any form of schooling or professional improvement in institutionalized forms; " .................................................................................... " i) the income earned by war veterans, war widows, unmarried widows of war veterans and unmarried widows of the heroes-martyrs of the Romanian Revolution of December 1989, from practice on their own and in the same way. singular of a trade or profession, as well as from the rental of a single dwelling, with the exception of income derived exclusively from the trade activity; " .............................................................. " l) income from securities trading, according to the National Securities Commission of Romania; m) incomes made from the sale of agricultural products in natural state, obtained from their own production, from the breeding of animals and birds, from the sale of products from forestry, sericulture, beekeeping and fish farming, in condition natural, as well as from the sale of products collected from spontaneous flora and fauna; n) incomes made by individuals over 65 years of age-women and 70 years old-men, first degree invalids and persons with disabilities assimilable to the degree I of invalidity, who make income from practice on its own and in the singular way of a trade or profession, with the exception of income derived exclusively from trade. " 4. in Article 3, after letter n) the letters o) and p) shall be inserted, with the following contents: " o) prizes awarded to athletes, coaches and technicians for the achievement of the following high performance objectives: -ranking on the award podium of the world, European and Olympic games; -qualification and participation in the European, world and Olympic games; p) prizes awarded to people of culture, science and art at festivals or other international competitions. " 5. Article 5 shall read as follows: "" Art. 5. -Taxpayers provided in art. 1, authorized according to the law, shall be imposed on the basis of the actual income realized, the taxable income determining as the difference between the total income collected, in money and in kind, from the work carried out and the expenses incurred for income, including premiums paid for insurance of goods, insurance of civil liability and accident insurance for employees, related to the work carried out, on the basis of supporting documents. " 6. In Article 7 (1), points d) and f) shall read as follows: " d) sponsorship expenses made over the limit provided by the sponsorship law no. 32/1994 32/1994, as amended; ' ........................................................... "" f) expenditure incurred above the limit of 10% of revenue received for delegation and posting, including expenditure on means of transport, individual property of the taxpayer, when used for the purpose of income, as well as maintenance, rent and phone expenses, when the activity is carried out at its own home; " 7. In Article 8, paragraph 1 shall read as follows: "" Art. 8. -(1) The craftsmen who provide services or perform works in a singular way or in family associations in stable workshops shall be required on the basis of annual income norms, which will be determined by decision of the county councils or the General Council of Bucharest Municipality. The income rules shall be reduced as follows: a) 40% for men between 60 and 65 years and for women between 55 and 60 years; b) 50% for men between 65 and 70 and for women between 60 and 65 years; c) 50% for people who are employed, employed with a full-time employment contract. For family associations, a coefficient of increase of the income rules of 50% shall be applied for each member thereof. " 8. Article 9 shall read as follows: "" Art. 9. -The reductions and exemptions, granted according to the provisions of this emergency ordinance, shall apply from the year following that in which taxpayers reach the mentioned age limits, respectively with the month following the submission of the supporting documents for disabled and disabled persons. " 9. Article 10 shall read as follows: "" Art. 10. -Taxpayers who carry out exclusively travelling and travelling trade activity, carauses with means of transport with animal traction and travelling craftsmen shall be subject to the payment of a quarterly flat tax, established by decision of the county councils or the General Council of Bucharest Municipality. " 10. In Article 13, paragraph 1 shall read as follows: "" Art. 13. -(1) The taxpayers who are required on the basis of the actual income made are obliged to submit the annual declaration of taxation for the income made in the previous fiscal year, until January 31 of each fiscal year. " 11. In Article 14, paragraph 3 shall read as follows: "" (3) In the event of an increase or reduction of more than 20% of the income achieved during the year, the tax authorities will recalculate, once a year, during the second semester, the provisional tax, depending on the income actually made from the beginning the year of taxation, allocating the tax resulting from the recalculation on the following payment terms. " 12. In Article 16, paragraph 1 shall read as follows: "" Art. 16. --(1) In the case of finding by the tax authorities some deviations from the legislation in force, on the line of non-declaration of income, the unreal evidence and declaration of income and expenses, in order to evade the payment of tax, or non-compliance with the mandatory records provided by law, in addition to the application of the sanctions provided by the legislation in force in terms of deviations from financial discipline, the tax authorities will proceed to the imposition, ex officio, based on established by the instructions provided in art. 30 30 para. (2) of this emergency ordinance, and in case of repeated misconduct or in the case of unjustified holding of the operating authorization, through the lack of activity of taxpayers for a period of 6 months, the tax authorities will proceed to the detention operating permits and their submission, in the emergency procedure, to the authorities who have issued them, in order to cancel. " 13. The title of Chapter III shall read as follows: "Tax on income earned from the valorization, in any form, of copyright or rights related to copyright, including by any persons who have acquired these rights by inheritance" 14. In Article 17, paragraph 1 shall read as follows: "" Art. 17. --(1) Income made from the use or exploitation of a work of intellectual creation or of an artistic performance, including those arising from the compensatory remuneration for private copying or the resale right, shall be subject annually to the imposition of by the paying unit or, as the case may be, by collecting societies, established according to the law. " 15. In Article 18 (1), letter c) shall read as follows: "" c) 35% in the case of scientific works, as well as works and artistic performances, regardless of gender, with the exception of the works referred to in lett. a) and b); " 16. Article 18 (1), point e) shall be repealed. 17. Article 18 (2) shall be repealed. 18. In Article 18, paragraphs 3 and 4 shall read as follows: " (3) In the case of monumental works of art, at which the actual expenses exceed the flat rate established in par. ((1) lit. a), the taxable annual income is determined by the decrease in the gross income made of these expenses, on the basis of supporting documents. ((. The quotas referred to above shall not apply to heirs. " 19. The title of Chapter IV shall read as follows: "Tax on rental income, from subrentals, from the constitution of the right of use, use or abitation, as well as from mandate and assignment contracts" 20. Article 22 shall read as follows: "" Art. 22. -Income made by individuals, on a permanent or temporary basis, directly or through specialized economic agents, from rentals, from subrentals, from the constitution of the right of use, use or abitation, as well as from mandate contracts and the assignment shall be subject to taxation in accordance with the provisions of this emergency ordinance. ' 21. Article 24 shall read as follows: "" Art. 24. -(1) The taxable annual income shall be determined by subtracting from the income received during a year of taxes and fees due according to the law for goods transferred to use, which are the responsibility of the owner, usufructuary or other legal holder, except for the tax established by this emergency ordinance, of the commission retained by intermediaries and insurance premiums paid for the good ceded for use. (2) In the case of rentals and subleases of furnished rooms, a flat rate of 20% of the remaining income after the decrease of the expenses mentioned in par. ((1). ((3) The tax established for the current year of taxation shall be paid quarterly, in four equal installments, until the 15th of the last month of each quarter. " 22. In Article 26, the introductory part of paragraph 1 shall read as follows: "" Art. 26. -(1) Economic agents, public institutions and any other entities are obliged to calculate, retain and pay tax on gross amounts due to individuals for services rendered and works executed by them, as well as for any activity carried out outside the unit to which the individual beneficiary of income is employed, by applying the following quotas: " 23. Article 26 (2), point a) shall be repealed. 24. In Article 26 (2), letter b) shall read as follows: "" b) 15%, in the case of those who deliver goods or sell goods in consignment, with the exception of goods from the depositor's own inventory; " 25. In Article 27, paragraph 1 shall read as follows: "" Art. 27. -(1) The amounts withheld as tax represent definitive tax and shall be transferred to the budget of the local council on whose territorial area the payers of income referred to in art. 26 have their domicile or headquarters. The payment of the tax shall be made by 15 inclusive of the month following the payment. " 26. Article 27 (2) shall be repealed. 27. In Article 28, paragraph 1 shall read as follows: "" Art. 28. -(1) Income, other than those made on the basis of an individual employment contract concluded according to the law, obtained by athletes and other categories similar to persons, professionals or amateurs, other than those referred to in art. 5, made through legal persons, as a result of participation in shows, competitions, championships and other events, except for prizes, shall be taxed with the quotas referred to in art. 26 26 para. ((1). ' 28. In Article 29, paragraph 1 shall read as follows: "" Art. 29. -(1) Taxpayers, individuals, who make income from prizes and any gains of the same nature have the obligation to pay tax calculated by applying the 10% rate on the amount exceeding the non-taxable ceiling referred to in art. 2 2 para. ((1) lit. i). " 29. in Article 29, after paragraph 2, paragraph 3 is inserted as follows: " (3) In the case of incomes made by repeated receipts from the same income-paying unit, with the exceptions provided for in this emergency ordinance, the tax is calculated by cumulating the incomes made within the same month, deducting the tax withheld for previous payments. " 30. In Article 30, paragraph 1 shall read as follows: "" Art. 30. -(1) Local and county councils may grant, on a case-by-case basis, according to the law, for duly justified reasons, payment instalments in no more than 12 monthly instalments, payment deferrals until the end of the calendar year. " This law was adopted by the Senate at the meeting of 16 November 1998, in compliance with the provisions of art. 74 74 para. (2) of the Romanian Constitution. p. SENATE PRESIDENT, MIRCEA IONESCU-QUINTUS This law was adopted by the Chamber of Deputies at the meeting of November 25, 1998, in compliance with the provisions of 74 74 para. (2) of the Romanian Constitution. p. CHAMBER OF DEPUTIES PRESIDENT, ANDREI IOAN CHILIMAN ----------------