Law No. 493 Of 11 July 2002 Approving Ordinance No. Income Tax 7/2001

Original Language Title:  LEGE nr. 493 din 11 iulie 2002 pentru aprobarea Ordonanţei Guvernului nr. 7/2001 privind impozitul pe venit

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Law No. 493 of 11 July 2002 approving Ordinance No. 7/2001 relating to income tax published in PARLIAMENT ISSUING the OFFICIAL GAZETTE nr. 543 of 25 July 2002, the Romanian Parliament adopts this law.


Article 1 shall be subject to approval of the Government Ordinance No. 7 of 19 July 2001 on income tax, adopted pursuant to article 1. 1 paragraph 1 of law No. 324/2001 concerning the Government's empowerment issue decrees and published in the Official Gazette of Romania, part I, no. 435 from august 3, 2001, with the following amendments and supplements: 1. In article 1, letter f) shall read as follows: "personal deductions f) represents a non-taxable ceiling amount granted to the taxpayer, including the basic personal deduction and additional personal deductions, according to its own situation and/or dependants, as appropriate;"
2. In article 1, after the letter h) Insert the letter i) with the following content: "i) fixed base is the place through which the business of an individual in Romanian is not domiciled in Romania or a foreign natural person on the territory of Romania shall be carried out in whole or in part, for the purpose of earning income."
3. In article 4, paragraph 1, letter f) shall read as follows: "f) income from agricultural activities, defined in accordance with this Ordinance;"
4. In article 5, subparagraphs b), c), k) and m) will read as follows: "(b)) the counterpart of the gifts granted to minor children of employees on the occasion of June 1 and Christmas holidays or other similar holidays, other recognized religious denominations-specific regulations, and hires on the occasion of 8 March, subject to a maximum amount of 1.000.000 for each person and event;

c) burial grants, aid to large losses in their own households as a result of natural disasters, as well as in the event of serious illness or incurable, granted to the employee;
  



k) proceeds as a result of the transfer of ownership of real estate and movable tangible personal heritage, excluding the proceeds from the transfer of ownership of securities and the social parties, and those derived from operations of buying-selling foreign currency forward contract;
  

.

m) amounts received to cover the costs of transport, nature, accommodation allowance granted during the period of posting and another delegation in the country and abroad, as well as in the case of travel, within the village, in the interests of the service, except as provided by non-profit-making legal entities over legal limits set for public institutions; "
  

5. In article 6, after the letter f) introduce the letters f and f ^ 1) ^ 2) with the following content: "f ^ 1) awards, premiums and allowances granted to sports athletes, coaches, technicians and other specialists referred to in art. 62 of the law on physical education and Sport No. 69/2000, as amended and supplemented, for the attainment of high performance:-ranking catwalk premiere at the European Championships, World Championships and Olympic Games;
-the qualification and participation in European Championships, world and Olympic Games, in the case of sports;
f ^ 2) allowances and premiums granted to sports athletes, coaches, technicians and other specialists referred to in art. 62 of the Act No. 69/2000, as amended and supplemented, in preparation for and participation at international competitions of the batches representative of Romania; "
6. In article 6, the letters j and l)) will read as follows: "j) income representing cash benefits and/or nature granted to disabled persons, war veterans, invalids and war widows, accidentatilor of war besides the service ordered, to persons persecuted for political reasons of dictatorship — established with effect from 6 March 1945, those deported abroad times company formed in prisoners the heroes, the survivors-martyrs, the wounded, the fighters for the revolution of December 1989, as well as to persons persecuted for ethnic reasons by the regimes in Romania with effect from September 6, 1940 until 6 March 1945;


l) income from wages as a result of the activity of creating computer programs; employment in the creative activity of computer programs and to establish conditions of application shall be made by joint order of the Minister of labour and social solidarity, Minister of communications and information technology and the Minister of public finances. "
  

7. In article 8, paragraph (2) shall read as follows: "(2) for fiscal year 2001 annual tax shall be calculated by applying the annual taxable income a global scale annually achieved based on the scale referred to in paragraph 1. (1) the inflation rate made corrected during September-December 2001, communicated by the National Institute of statistics. A schedule of annual tax for fiscal year 2001 is as follows: "the taxable Annual Income Tax annually (lei) (lei) until 19,700,000 18% 19.700.001-49.900.000 3,546,000 + 23% of what exceeds the amount of 19,700,000 lei 49.900.001-78.800.000 10,492,000 + 28% for what exceeds the amount of 49,900,000 lei 78.800.001-110.400.000 18,584,000 + 34% of what exceeds the amount of 78,800,000 lei 110,400,000 29,328,000 + over 40% of what exceeds the amount of 110,400,000 lei" 8. In article 9, paragraph (1) shall read as follows: Art. 9. — (1) for the purposes of this Ordinance, in the categories of income specified in article 1. 4 include any advantages in money and in the nature of a physical person received, free of charge or with partial payment, as well as personal use property and related rights activities. Benefits include use in personal vehicles of any type, food, lodging, domestic work, staff discounts or rates in case of purchase of goods or services for its own employees, guided tour of goods and services, including the amounts awarded for amusement or recreation, and the like. "
9. In article 13, paragraph (3) shall read as follows: "(3) beginning with fiscal year 2002 amounts, expressed in lei, in this Ordinance, other than the basic personal deduction limits and fines and penalties provided for in article 10. 72 para. (2) in article 11. 72 ^ 1, shall be adopted in accordance with the procedure laid down in article 21. 8 para. (3)."
10. In article 15, paragraphs (1) and (3) shall read as follows: Art. 15. — (1) for the purposes of this Ordinance, the income from independent activities include commercial revenues, income from professions and income from intellectual property rights, made individually and/or in some form of Association, including the adjacent activities.


(3) Constitute income from professions proceeds from the exercise of the medical professions of lawyer, notary, accountant, certified public accountant, consultant, investment in securities, architect or other similar profession, carried out independently, in accordance with the law. "
  

11. In article 16 (4), subparagraph (k)) shall read as follows: "k) amounts received to cover the costs of daily allowance nature of delegation or secondment, granted during the period of posting and another delegation in the country and abroad, in the interests of the service, which exceed the limits established for companies;"
12. In article 16, paragraph (6) shall read as follows: "(6) net income from independent activities conducted by individuals within the framework of associations among natural persons, without legal personality, shall be calculated at the level of the Association, in accordance with the provisions of this article, with due regard to the rules laid down in chapter II. IV. "
13. In article 16, after paragraph 6, insert (7) with the following contents: "(7) net income from independent activities conducted by individuals within the framework of associations of individuals and legal entities, which do not give rise to a legal person, shall be calculated at the level of the Association in compliance with the rules laid down in chapter II. IV. "
14. In article 18, paragraphs (2) and (3) shall read as follows: "(2) the net income shall be determined by deducting from the gross income of a spending 40%, applied to the gross income, as well as mandatory contributions due under the law.

(3) net income from royalties related works of monumental art is determined by deducting from the gross income of a spending 50%, applied to the gross income, as well as mandatory contributions due under the law. "
  

15. In article 21 (1) (b)) shall read as follows: "b) 10% of the gross income received as a result of recovery of goods under consignment;"
16. In article 21 (1), after subparagraph (c)) is inserted in point d) with the following content: "d) 10% of the gross income received in the case of activities of accounting expertise, judicial and extra-judicial technique."
17. In article 21, after paragraph 2, insert (3) with the following contents:

"(3) the tax withheld on behalf of a legal entity natural person for income obtained from an association with a Romanian legal person, which does not give rise to a legal person, shall mean the pre-payments in annual tax on income account. The obligation to calculate, withhold income tax and withholding tax determined in accordance with the methodology set out in the income tax law is the responsibility of the Romanian legal person. "
18. Article 22 shall read as follows: Art. 22.-are considered income from wages and salaries, hereinafter, all proceeds in cash and/or in kind, earned by a person carrying on an activity in physics on the basis of an individual contract of employment or of a specific status provided for by law, regardless of the period to which it relates, or of the name of the form in which they are granted, including allowances for temporary incapacity for work maternity and parental leave for childcare up to the age of 2 years. "
19. In article 23(1), introductory part shall read as follows: Art. 23.-for the purposes of taxation, are treated as wages: "20. In article 23, after the letter a) is inserted in point of ^ 1) with the following contents: ' a ^ 1) allowances from activities undertaken as a result of a function chosen within the non-profit legal persons; "
21. In article 23, subparagraph i) shall read as follows: "(i)) other support or assimilated nature of salaries."
22. In article 24, paragraph 5, shall be repealed.
23. In article 24, paragraph 8 shall read as follows: "(8) in the case of revenue received in advance during the year to pay indemnities for annual leave, they shall include the basis for the calculation of the month to which they relate."
24. In article 28, paragraph (1) shall read as follows: Art. 28. — (1) the taxpayers operating in Romania and get income in the form of wages from abroad, as well as the Romanian natural persons engaged of diplomatic missions and consular posts accredited in Romania have an obligation that, personally or through a representative, to calculate tax liability under art. 24, to declare and pay within 25 days after the end of the month for which the income. "
25. In article 36, after paragraph 2, insert (3) with the following contents: "(3) the proceeds according to para. (1) and (2) not subject to globalization. "
26. Article 38 shall read as follows: Art. 38.-in this category include: a) the proceeds from gambling;
  

b) income in the form of gains from the transfer of ownership of securities and of the social parties;
  

(c)) in the form of revenue earnings from operations of buying-selling foreign currency forward contract and any other operations of this kind;
  

d) revenues in the form of cash prizes and/or in nature, other than those referred to in article 1. 6, 22 and 23;
  

(e) miscellaneous income) not expressly mentioned in this Ordinance, as well as income but also with a chance. "
  

27. Article 40 shall read as follows: Art. 40. — (1) the proceeds from gambling, cash and/or in kind, as referred to in art. 38, restraint from source with a share of 20% on the difference between gross income and the amount of income exempted under art. 39. (2) income from prizes in cash and/or in kind, as referred to in art. 38, shall be imposed by the source with a retention rate of 10% on the difference between gross income and the amount of income exempted under art. 39. (3) the obligation of calculating, withholding tax payers withhold tax returns and income tax being final. "
  

28. In article 41, paragraph (2) shall read as follows: "(2) a capital Gain represents the difference obtained in addition between the selling price and the purchase price of the securities, reduced, where appropriate, with the fees owed to intermediaries."
29. In article 41, after paragraph 10 Insert paragraph 11 with the following contents: "(11) In the application of the provisions of this article shall be used for determining the rules, withholding and payment of tax on the capital gain obtained by individuals, which are issued by the National Securities Commission, the Ministry of public finances."
30. According to article 41 shall be inserted in article 41 ^ 1) with the following content: "Art. 41 ^ 1-(1) the proceeds in the form of earnings from operations of buying-selling foreign currency forward contract, as well as from any other operations of this kind represent favorable rate differences resulting from such operations and necessary by applying a tax rate of 1% at the close of the transaction and the client behalf highlighting, and payment of tax shall be made not later than the 25th day of the month following that in which it was withheld.

(2) the tax is calculated, withheld and paid up according to the provisions of paragraph 1. (1) is final.
  

(3) the losses are not compensated by the gain realized from such operations. "
  

31. In article 43, paragraph (1) shall read as follows: Art. 43. — (1) the income not expressly mentioned in this Ordinance shall be subject to taxation with a rate of 10%, the tax being final. "
32. In article 46, paragraph (3) shall read as follows: "(3) the rules of income approved by the General Directorates of the Ministry of public finances public finances, with the opinion of the territorial divisions of the Ministry of agriculture, Food and forests, at the latest by 31 May of the fiscal year. The rules of income shall be fixed per unit of surface area and to be reduced in the event of natural disasters, as well as in the event of commencement or cessation of activity during the year. "
33. In article 46, after paragraph (5) shall be included in paragraphs (6) to (8) with the following contents: "(6) taxpayers who are beginning an activity after 30 June will submit tax return statement within 15 days from the date of commencement.

(7) Notwithstanding the provisions of the preceding paragraphs of this article, taxpayers who obtain income from agricultural activities, defined in accordance with this Ordinance, have the right to opt for the determination of net income in the real system.
  

(8) the option is made on the basis of request to the competent fiscal body not later than January 31 of the tax year or a date with the filing of the Declaration of estimated income and is mandatory for the taxpayer for the period of 3 consecutive fiscal years. The option shall be considered renewed for another three years if the taxpayer does not file a petition for waiver of option regarding the taxation of the real system. "
  

34. Article 58 shall read as follows: Art. 58. — (1) the provisions of art. 53-57 applies to associations of individuals, which do not give rise to a legal person.

(2) the provisions of this chapter do not apply to investment funds constituted as associations without legal personality.
  

(3) in the case of associations formed between individuals and legal entities, which do not give rise to a legal person shall apply the rules concerning the methodology for calculating the tax on the profit.
  

(4) a person's due Profits from an association with a Romanian legal person, which does not give rise to a legal person, as determined in compliance with the rules set out in the income tax legislation, shall be treated, for the purposes of taxation at the individual level, income from self-employment, mandatory contributions deducted to obtain net income. "
  

35. Article 62 shall read as follows: Art. 62. — (1) the taxpayers are required to complete and submit to the competent tax authority a statement of overall income and special statements no later than 30 April of the year following the year of achieving income.

(2) special Statements shall be completed for each category of income and each carrying it.
  

(3) the competent tax authority referred to in paragraph 1. (1) shall be determined by decision of the Government.
  

(4) income from taxpayers who carried out a single source, in the form of salary, to the function, the entire tax year, for which the employer has conducted transactions prescribed in article 11. 27, does not have the obligation to file income statements. Also, taxpayers who obtain income from Romania, whose tax is final and for which there is an obligation on the tax withholding tax due annual source, does not have the obligation to lodge a declaration for this income. "
  

36. Article 64 shall read as follows: Art. 64. Statements under article 4. 55, 62 and 63 shall be subject to the rules on the procedure for drawing up and submission of tax declarations and taxes. "
37. In article 65, following paragraph 4 shall be inserted in paragraph 5 with the following: "(5) For private residential buildings shall be granted a reduction of income tax in the amount of 20% of the value of the materials used. Shall be exempt from the provisions of this paragraph are those that build housing through the National Housing Agency or receive other facilities provided by law. "
38. In article 66, paragraph (3) shall read as follows:

"(3) the anticipated Payments shall be made in 4 equal installments, up to 15 including the last month of each quarter, with the exception of tax on income from rent, payable in two equal installments, until 1 September and 15 November, respectively, inclusive."
39. In article 66, paragraph 4, subparagraph (c)) shall read as follows: "(c)) the taxpayer did not provide data on the estimated revenue, or if there are documents that the data supplied are incorrect."
40. In article 70, paragraph (1) shall read as follows: Art. 70. — (1) the revenue Payers with retention at source are required to communicate to the competent fiscal body information on the calculation of tax for each beneficiary, in accordance with the format established by the Ministry of public finance. The communication shall be made no later than 30 June of the current year for the year expired, except for payers of income referred to in article 1. 21 that will perform communication until the last day of February of the current year, including the year expired. "
41. Article 72 shall read as follows: Art. 72. — (1) the following acts Constitute offences, if they are not committed in such circumstances that, according to the criminal law, constitute offenses: failure of the term) of the taxpayers who are natural persons of the Declaration relating to the revenue estimates, of the Declaration for sources of income which, according to the law, is globalizeaza, and of the Declaration referred to in article 1. 28 para. (1);
  

(b) failure to apply within) the Declaration of income and estimated the annual income declaration by the associations without legal personality;
  

c) failure by the taxpayer payroll and wage income on completion of obligations and keeping appropriate records;
  

d transmit tax data sheets) of the form referred to in article 1. 70 at the competent tax authority, within the period prescribed by this Ordinance;
  

(e) failure to comply with the obligation of transmission) of employee tax form, referred to in art. 26 para. (5);
  

f-term) of failure. 28 para. 3. (2) the Offences referred to in paragraph 1. (1) shall be imposed as follows: (a) point (b)). the fine) to 100,000 lei to 500,000 lei;
  

b) the white and rosé wines. (b)) and f), with fine from 1.000.000 to 3 million lei lei;
  

c) the white and rosé wines. c)-e) with fine 10 million 50 million lei lei.
  

(3) the provisions of this article shall complement the provisions of Ordinance No. 2/2001 relating to the legal regime of contraventions, approved with amendments and completions by law No. 180/2002, with the exception of art. 28 and 29. "
  

42. After article 72 article 72 shall enter ^ 1 with the following content: "Art. 72 ^ 1. (1) failure to apply within the statement of income, as well as special declaration for sources of revenue, according to the law, the tax is final is charged as follows: a) 10% of the annual tax payable times established where appropriate ex officio, if the time limit is exceeded the legal set up to 30 days inclusive;
  

b) 30% of the annual tax payable times established where appropriate ex officio, if the time limit is exceeded the legal set up to 60 days inclusive;
  

c) 50% of the annual tax payable times established where appropriate ex officio, if the time limit is exceeded the legal established with over 60 days;
  

d) with 100,000-500,000 lei, in the case of taxpayers for the annual tax due is zero.
  

(2) the penalties imposed under the provisions of paragraph 1. (1) may not exceed the amount of EUR 10 million. "
  

43. In article 74, paragraphs (1) and (2) shall read as follows: Art. 74. — (1) the data, information, and data bases relating to individuals necessary for determining income tax, shall be made freely available by the Ministry of public finances: a) organs of Central and local public administration, public institutions or public interest;
  

b) public or private institutions as appropriate, leading record of population or that records, in whatever form, the conclusion of contracts, goods and property rights, exploitation and the like;
  

c) natural or legal persons who hold in safekeeping or in goods and rights management times sums of money from taxpayers, or have business relationships with them.
  

(2) Entities referred to in paragraph 1. (1) (a). b)) are required to provide all permanent changes in their own data bases, necessary updating of the database of the Ministry of public finance, "according to its specification.
  

44. Article 75 shall read as follows: Art. 75. — (1) the exemptions from income tax provided for in acts concerning certain protection measures with regard to collective redundancies as a result of staff dismissed, shall remain valid until their expiry date.

(2) Exemption from income tax in the case of tourist services provided in rural areas, according to the law, shall remain in force until 31 December 2004.
  

(3) the losses incurred during the period of exemption of taxpayers who benefit from the provisions of paragraph 1. (1) and (2) shall not be compensated by proceeds from the other categories of revenue in those years and over, representing a definitive loss of taxpayers. "
  

45. Article 76 shall read as follows: Art. 76.-income from wages and salaries from the assimilated overseas as a result of the activities carried out abroad by Romanian natural persons resident in Romania shall not be subject to the procedure of globalization. "
46. Article 85 shall read as follows: Art. 85.-The date of entry into force of this Ordinance shall repeal: the provisions of the Ordinance to the Government). income tax 73/1999, published in the Official Gazette of Romania, part I, no. 419 of 31 august 1999;
  

(b) the provisions of Emergency Ordinance) to the Government. 87/2000 for the modification and completion of the Government Ordinance. income tax 73/1999, published in the Official Gazette of Romania, part I, no. 302 of 3 July 2000;
  

c the provisions of Emergency Ordinance) to the Government. 46/2001 for the modification and completion of the Government Ordinance. income tax 73/1999, published in the Official Gazette of Romania, part I, no. 157 of 29 March 2001;
  

d the provisions of Emergency Ordinance) to the Government. 77/2001 modification of article. 59 from the Government Ordinance. income tax 73/1999, published in the Official Gazette of Romania, part I, no. 291 of 1 June 2001;
  

e the provisions of Emergency Ordinance) to the Government. 94/2001 for completing art. 6 of Ordinance No. income tax 73/1999, published in the Official Gazette of Romania, part I, no. 347 of 29 June 2001;
  

f the provisions of Emergency Ordinance) to the Government. 235/2000 for completing art. 32 from the Government Ordinance. income tax 73/1999, published in the Official Gazette of Romania, part I, no. 614 of 29 November 2000;
  

g) article. 43 para. (1) (a). b)) relating to tax relief on income paid to natural persons, as well as those of art. 43 para. (2) of law No. 32/2000 concerning insurance undertakings and insurance supervision, as published in the Official Gazette of Romania, part I, no. 148 of 10 April 2000;
  

h) article. 21 ^ 5 with regard to their applicability to individuals and family associations of law nr. 133/1999 relating to private entrepreneurs for setting up stimulation and development of small and medium-sized enterprises, as published in the Official Gazette of Romania, part I, no. 349 of 23 July 1999, as amended and supplemented;
  

I) provisions concerning the taxation of benefits under article 4. 39 in paragraph 1. (1) (a). d) and in article 8. 41 para. (2) of law No. 50/1996 concerning remuneration and other entitlements of the staff of law enforcement agencies, judicial authority, republished in the Official Gazette of Romania, part I, no. 563 on November 18, 1999, as amended and supplemented;
  

provision concerning) tax relief on rent referred to in art. 15 para. (3) of law No. 10/2001 concerning the legal status of some buildings taken improperly from 6 March 1945-22 December 1989, published in the Official Gazette of Romania, part I, no. 75 of 14 February 2001, as amended and supplemented;
  

k) article. 77 of the law of physical education and Sport No. 69/2000 published in the Official Gazette of Romania, part I, no. 200 of 9 May 2000, as amended and supplemented;
  

l) provisions relating to exemption from income tax granted to individuals of the Government Emergency Ordinance nr. 9/2000 *) to amend the Government's Emergency Ordinance No. 66/1997 relating to exemption from payment of taxes on wages and/or income from foreign consultants for activities undertaken in Romania under the loan agreements, as published in the Official Gazette of Romania, part I, no. 93 of 1 March 2000;
  

m) article. 64 of law No. 188/2000 relating to the bailiffs, published in the Official Gazette of Romania, part I, no. 559 of 10 November 2000;
  


n) article. 46 of the law nr. 184/2001 on the organisation and exercise of the profession of architect, published in the Official Gazette of Romania, part I, no. 195 of 18 April 2001;
  

o) article. I point 7 of law No. 629/2001 for the approval of the Government Ordinance. 124/1998 on the organisation and operation of the surgeries, published in the Official Gazette of Romania, part I, no. 724 of 13 November 2001;
  

p) article. 89 para. (3) relating to the taxation of the law nr. 128/1997 on the status of teachers, which was published in the Official Gazette of Romania, part I, no. 158 of 16 July 1997, as amended and supplemented;
  

q) article. III of the Emergency Ordinance of Government No. 16/2002 for the regulation of tax measures, published in the Official Gazette of Romania, part I, no. 145 of 26 February 2002;
  

r) the provisions relating to tax relief on rent in point 22 of article in law No. 241/2001 for approval of Emergency Ordinance of Government No. 40/1999 on protection of tenants and rent setting for spaces with housing destination, as published in the Official Gazette of Romania, part I, no. 265 of 23 May 2001;
  

s) the provisions relating to tax relief on income from art. 5 para. (1) of law No. 118/2002 for the establishment of compensation of merit, which was published in the Official Gazette of Romania, part I, no. 189 of 20 March 2002;
  

t) any other provisions to the contrary. "
  

— — — — — — — — — * Note) Government Emergency Ordinance nr. 9/2000 was rejected by law No. 421/2001 published in the Official Gazette of Romania, part I, no. 402 of 20 July 2001.


Article 2 the provisions of this law shall enter into force with effect from 1 January 2003, except for the provisions of article 7. (I) 5-art. 6 lit. f ^ and f ^ 1) 2), which shall enter into force on the first day of the month following its publication in the Official Gazette of Romania, part I.


Article 3 the Government Ordinance. income tax 7/2001, published in the Official Gazette of Romania, part I, no. 435 from august 3, 2001, will be republished in the Official Gazette of Romania, part I, posing a new texts.
This law was adopted by the Senate at its meeting on 24 June 2002, with due regard for the provisions of article 7. 74 para. (2) of the Constitution of Romania.
p. PRESIDENT of the SENATE, DANIELS T this law was adopted by the Chamber of deputies at its meeting on 25 June 2002, with due regard for the provisions of article 7. 74 para. (2) of the Constitution of Romania.
PRESIDENT Of The CHAMBER Of DEPUTIES VALER DANNER — — — — — — — — — — — —

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