Published in OFFICIAL MONITOR no. 543 543 of 25 July 2002
The Romanian Parliament adopts this law + Article 1 Approval Government Ordinance no. 7 7 of 19 July 2001 on income tax, adopted on the basis of art. 1 1 section II.1 of Law no. 324/2001 on the empowerment of the Government to issue ordinances and published in the Official Gazette of Romania, Part I, no. 435 of 3 August 2001, with the following amendments and additions: 1. In Article 1, letter f) shall read as follows: "f) personal deductions represent a non-taxable amount to the taxpayer, including basic personal deduction and additional personal deductions, depending on the situation of their own and/or dependants, as the case may be;" 2. in Article 1, after letter h), insert letter i) with the following contents: "" i) the fixed base represents the place through which the activity of a Romanian natural person who is not domiciled in Romania or of a foreign natural person on the territory of Romania takes place, in whole or only in part, in order to obtain of income. " 3. In Article 4 (1), letter f) shall read as follows: "f) income from agricultural activities, defined in accordance with this ordinance;" 4. In Article 5, letters b), c), k) and m) shall read as follows: " b) the value of gifts granted to minor children of employees on the occasion of June 1 and Christmas holidays or other similar holidays, specific to other religious cults recognized by law, as well as to employees on the occasion of 8 March, within the amount of 1.000.000 lei for each person and event; c) funeral aids, aid for significant losses in own households as a result of natural disasters, as well as in the case of serious or incurable diseases, granted to the employee; ... .................................................................. k) incomes obtained as a result of the transfer of ownership of real estate and personal movable property, excluding those obtained from the transfer of ownership of securities and social parts, as well as those obtained from sale-purchase operations of foreign currency, on a contractual basis; ... ................................................................ m) the amounts received to cover the expenses of the nature of the transport, accommodation, allowance granted during the delegation and posting to another locality, in the country and abroad, as well as in case of travel, within the locality, in the interest of the service, with the exception of those granted by non-profit legal entities above the legal limits established for public institutions; ... 5. in Article 6, after letter f), the letters f ^ 1) and f ^ 2 are inserted) with the following contents: "" f ^ 1) prizes, bonuses and sports allowances awarded to athletes, coaches, technicians and other specialists referred to in art. 62 of the Physical Education and Sports Law no. 69/2000 , with subsequent amendments and completions, in order to achieve the high performance objectives: -ranking on the award podium at the European championships, world championships and Olympic games; -qualification and participation in the European championships, world and Olympic games, in the case of sports games; f ^ 2) the first and sports allowances granted to athletes, coaches, technicians and other specialists provided at art. 62 62 of Law no. 69/2000 , with subsequent amendments and completions, in order to prepare and participate in the official international competitions of the representative lots of Romania; " 6. In Article 6, the letters j) and l) shall read as follows: " j) income representing the advantages in money and/or in kind granted to persons with disabilities, war veterans, invalids and war widows, off-duty war-injured persons, persons persecuted for political reasons of the dictatorship established with effect from March 6, 1945, to those deported abroad or constituted in prisoners, to the descendants of the heroes-martyrs, to the wounded, to the fighters for the victory of the Revolution of December 1989, as well as to the persecuted people of ethnic reasons by the regimes established in Romania starting from 6 September 1940 to March 6, 1945; .................................................................. l) income from salaries as a result of the activity of creation of computer programs; framing in the work of creation of computer programs and establishing the conditions of application are made by joint order of the Minister of Labour and social solidarity, the Minister of Communications and Information Technology and the Minister of Public Finance. " ... 7. In Article 8, paragraph 2 shall read as follows: " (2) For fiscal year 2001 the annual tax shall be calculated by applying on the annual taxable global income of the annual barem obtained on the basis of the scale provided in par. (1), corrected with the inflation rate achieved during September-December 2001, communicated by the National Institute of Statistics. The annual taxation scale for fiscal year 2001 is as follows: " Annual taxable income Annual tax (lei) (lei) up to 19.700.00018% 19.700.001-49.900.0003.546,000 + 23% for what exceeds the amount of 19.700,000 lei 49.900.001-78.800.00010.492,000 + 28% for what exceeds the amount of 49,900,000 lei 78.800.001-110.400.00018.584.000 + 34% for what exceeds the amount of 78,800,000 lei over 110.400.00029.328,000 + 40% for what exceeds the amount of 110.400,000 lei " 8. In Article 9, paragraph 1 shall read as follows: "" Art. 9. -(1) In application of this ordinance, in the categories of income provided in art. 4 includes any advantages in money and in kind received by a natural person, free of charge or with partial payment, as well as the personal use of goods and rights related to the activity. The advantages granted include the personal use of vehicles of any type, food, accommodation, staff for domestic work, price or tariff reductions in the case of purchase of goods or services for own employees, gratuities of goods and services, including amounts granted for entertainment or recreation, and the like. " 9. In Article 13, paragraph 3 shall read as follows: " (3) Starting with fiscal year 2002 the fixed amounts, expressed in lei, from the present ordinance, other than the basic personal deduction and the limits of fines and penalties provided for in art. 72 72 para. ((2), respectively in art. 72 ^ 1, shall be established according to the procedure provided for in 8 8 para. ((3). ' 10. In Article 15, paragraphs 1 and 3 shall read as follows: "" Art. 15. -(1) For the purposes of this ordinance, income from self-employment includes commercial income, income from free professions and income from intellectual property rights, made on an individual basis and/or in a form of association, including from adjacent activities. ............................................................... (3) It constitutes income from free professions income obtained from the exercise of medical professions, lawyer, notary, accounting expert, authorized accountant, placement consultant in securities, architect or other similar professions, conducted independently, under the law. " ... 11. In Article 16 (4), the letter k) shall read as follows: " k) the amounts received for covering the expenses of the nature of the daily delegation or posting allowance, granted during the delegation and posting to another locality, in the country and abroad, in the interest of the service, which exceed the limits established for companies; ' 12. In Article 16, paragraph 6 shall read as follows: " (6) The net income from self-employment, made by individuals in associations between individuals, without legal personality, shall be calculated at the level of the association, according to the provisions of this Article, in compliance with the rules of the head. IV. " 13. in Article 16, after paragraph 6, paragraph 7 is inserted as follows: " (7) Net income from self-employment, made by individuals in associations between 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 The head. IV. " 14. In Article 18, paragraphs 2 and 3 shall read as follows: " (2) Net income is determined by deducting from the gross income a 40% expense allowance, applied to gross income, as well as mandatory contributions, due according to the law. (3) The net income from copyright related to works of monumental art shall be determined by deducting from the gross income a share of 50%, applied to gross income, as well as compulsory contributions, due according to the law. " ... 15. In Article 21 (1), letter b) shall read as follows: "b) 10% of gross revenue collected, as a result of the recovery of goods under consignment;" 16. in Article 21 (1), the following shall be inserted after point c): "d) 10% of gross revenue collected, in the case of activities of accounting, judicial and extrajudicial expertise." 17. in Article 21, after paragraph 2, paragraph 3 is inserted as follows: " (3) The tax withheld by the legal person in the account of the natural person for the income made from an association with a Romanian legal person, which does not give rise to a legal person, represents the early payment in the account of the annual income tax. The obligation to calculate, retain and transfer the tax determined according to the methodology set out in the corporate tax legislation lies with the Romanian legal person. " 18. Article 22 shall read as follows: "" Art. 22. -They are considered income from salaries, hereinafter referred to as salaries, all income in money and/or in kind, obtained by a natural person carrying out an activity on the basis of an individual employment contract or a special status provided by law, regardless of the period to which it relates, the name of the income or the form under which they are granted, including allowances for temporary incapacity for work, maternity and parental leave aged up to 2 2 years. " 19. In Article 23, the introductory part shall read as follows: "" Art. 23. -In order to impose, they are assimilated to salaries: " 20. in Article 23, after letter a) the letter of ^ 1 is inserted) with the following contents: "a ^ 1) allowances from activities carried out as a result of a function chosen in non-profit legal entities;" 21. In Article 23, letter i) shall read as follows: "" i) other rights of a salary or equivalent to wages. " 22. Article 24 (5) shall be repealed. 23. In Article 24, paragraph 8 shall read as follows: "" (8) In the case of income received in advance during the year for the payment of holiday allowances, they shall be included in the basis of calculation of the months to which they relate. " 24. In Article 28, paragraph 1 shall read as follows: "" Art. 28. -(1) The taxpayers who operate in Romania and earn income in the form of salaries from abroad, as well as the Romanian individuals employed by diplomatic missions and consular posts accredited in Romania have the obligation that, personally or through a tax representative, to calculate the tax according to art. 24, to declare and pay him within 25 days after the expiry of the month for which the income was made. " 25. in Article 36, after paragraph 2, paragraph 3 is inserted as follows: " (3) The incomes obtained according to par. ((1) and (2) shall not be subject to globalisation. " 26. Article 38 shall read as follows: "" Art. 38. -This category includes: a) incomes obtained from gambling; ... b) income in the form of gains from the transfer of ownership of securities and social parts; ... c) income in the form of earnings from sale-purchase operations of term foreign currency, on the basis of contract, as well as any other operations of this kind; ... d) incomes in the form of cash prizes and/or in kind, other than those provided in art. 6 6, 22 and 23; ... e) various incomes that are not expressly mentioned in this ordinance, as well as revenues of a random nature. " ... 27. Article 40 shall read as follows: "" Art. 40. -(1) The incomes obtained from gambling, in money and/or in kind, provided in art. 38, shall be required by withholding with a 20% quota applied on the difference between gross income and the amount representing the exempt income according to art. 39. (2) Revenue from prizes, in money and/or in kind, provided in art. 38, shall be required by withholding with a rate of 10% applied on the difference between gross income and the amount representing the exempt income according to art. 39. ... (3) The obligation to calculate, retain and transfer the tax returns to the income payers, the tax being final. " ... 28. In Article 41, paragraph 2 shall read as follows: "(2) The capital gain represents the difference obtained in addition to the selling price and the purchase price by types of securities, reduced, as the case may be, with the commissions due to intermediaries." 29. in Article 41, after paragraph 10, paragraph 11 is inserted as follows: " (11) In application of the provisions of this Article, rules on the determination, retention and transfer of the capital gain tax obtained by individuals, which shall be issued by the National Securities Commission, shall be used with the opinion Ministry of Public Finance. " 30. Article 41 (1) shall be inserted after Article 41: "" Art. 41 41 ^ 1-(1) Revenues obtained in the form of gains from sale-purchase operations of term foreign currency, on a contractual basis, as well as from any other such operations represent the favorable course differences resulting from these operations and is required by applying a tax rate of 1%, at the time of closing the operation and highlighting in the customer's account, and the transfer of the tax is made until the 25th of the month following the month in which he was detained. (2) The calculated tax, retained and paid according to the provisions of par. ((1) is final. ... ((3) The recorded losses shall not be compensated by the gain made from such operations. " ... 31. In Article 43, paragraph 1 shall read as follows: "" Art. 43. -(1) Income not expressly mentioned in this ordinance shall be subject to an imposition of 10%, the tax being final. " 32. In Article 46, paragraph 3 shall read as follows: " (3) The income norms are approved by the general directorates of the territorial public finances of the Ministry of Public Finance, with the opinion of the specialized territorial departments of the Ministry of Agriculture, Food and Forestry, until the late on May 31 of the fiscal year. The income rules shall be established on the surface unit and shall be reduced in the event of natural disasters, as well as in the case of commencement or cessation of activity during the year. " 33. in Article 46, after paragraph 5, paragraphs 6 to 8 shall be inserted as follows: " (6) Taxpayers who start an activity after June 30 will submit their statement of taxation within 15 days from the start of the activity. (7) By exception to the provisions of the previous paragraphs of this Article, taxpayers who obtain income from agricultural activities, defined according to this ordinance, have the right to opt for the determination of net income in real system. ... ((8) The option shall be made on the basis of application addressed to the competent fiscal body by 31 January of the fiscal year or with the submission of the declaration on estimated income and is mandatory for the taxpayer during 3 fiscal years Consecutive. The option shall be deemed renewed for another 3-year period if the taxpayer does not submit an application for waiver of the option for the imposition of the real system. " ... 34. Article 58 shall read as follows: "" Art. 58. -(1) Provisions of art. 53-57 applies to associations between individuals, who do not give birth to a legal person. (2) The provisions of this chapter shall not apply to investment funds established as associations without legal personality. ... (3) In the case of associations established between individuals and Romanian legal entities, which do not give rise to a legal person, the rules on the calculation methodology of corporate tax are applicable. ... (4) The profit due to a natural person from an association with a Romanian legal person, which does not give rise to a legal person, determined in compliance with the rules established in the corporate tax law, is assimilated, in order to the imposition at the level of the individual, income from self-employment, from which compulsory contributions are deducted in order to obtain the net income. " ... 35. Article 62 shall read as follows: "" Art. 62. -(1) Taxpayers have the obligation to complete and submit to the competent fiscal body a statement of global income, as well as special statements until April 30 of the year following that of income realization. (2) The special statements shall be completed for each category of income and on each place of its realization. ... (3) The competent fiscal body referred to in par. (1) is established by Government decision. ... (4) Taxpayers who make income from a single source, in the form of salaries, at the basic function, for the entire fiscal year, for which the employer has carried out the operations provided in art. 27, are not required to submit their statements of global income. Also, taxpayers who make income from Romania, whose taxation is final and for which there is an obligation to retain the annual tax due, do not have the obligation to submit the special declaration for these incomes. " ... 36. Article 64 shall read as follows: "" Art. 64. -The statements provided in art. 55, 62 and 63 shall be subject to the regulations in force on the procedure for the preparation and submission of tax and tax declarations. " 37. in Article 65, after paragraph 4, paragraph 5 is inserted as follows: " (5) For personal property dwellings a reduction of the income tax in the amount of 20% of the value of the materials used is granted. Those who build housing through the National Housing Agency or benefit from other facilities provided by law shall be exempted from the provisions of this paragraph. " 38. In Article 66, paragraph 3 shall read as follows: "" (3) Early payments shall be made in 4 equal installments, up to and including the 15th of the last month of each quarter, except for the income tax from the lease, which shall be paid in two equal installments, until 1 September inclusive and, respectively, 15 November inclusive. " 39. In Article 66 (4), letter c) shall read as follows: "c) the taxpayer has not provided data relating to the estimated income or if there are documents that the data provided are incorrect." 40. In Article 70, paragraph 1 shall read as follows: "" Art. 70. -(1) Income payers with withholding regime are obliged to communicate to the competent fiscal body information on the calculation of the tax withheld for each income beneficiary, according to the form established by the Ministry Public Finance. The communication is made until June 30 of the current year for the expired year, except for the income payers provided in art. 21, which will carry out the communication until the last day of February inclusive of this year, for the expired year. " 41. Article 72 shall read as follows: "" Art. 72. -(1) It constitutes the following facts, if they are not committed under such conditions that, according to the criminal law, they constitute crimes: a) failure to submit to the deadline by individual taxpayers the declaration on the estimated income, the special declaration for sources of income that, according to the law, shall be globalized, as well as the declaration provided in art. 28 28 para. ((1); ... b) failure to submit to the deadline the estimated income statement and the annual income statement by the associations without legal personality; ... c) non-compliance by payers of salaries and incomes assimilated to salaries of obligations regarding the completion and preservation of tax records; ... d) non-transmission of tax records and the form provided in art. 70 to the competent fiscal body, within the period provided by this ordinance; ... e) failure to carry out the obligation to transmit the tax sheet to the employee, provided in art. 26 26 para. ((5); ... f) non-submission of the declaration referred to in art. 28 28 para. ((3). ... (2) Contraventions provided in par. ((1) shall be sanctioned as follows: ... a) those of lit. a), with a fine of 100,000 lei to 500,000 lei; ... b) those of lit. b) and f), with a fine of 1,000,000 lei to 3,000,000 lei; ... c) those of lit. c)-e), with a fine from 10,000,000 lei to 50,000,000 lei. ... (3) The provisions of this Article shall be supplemented by provisions Government Ordinance no. 2/2001 on the legal regime of contraventions, approved with amendments and additions by Law no. 180/2002 ,, except art. 28 28 and 29. " ... 42. After Article 72, the following Article 72 ^ 1 is inserted as follows: "" Art. 72 72 ^ 1. -(1) The term non-submission of the declaration of global income, as well as of the special declaration for the sources of income for which, according to the law, the tax is final shall be penalized as follows: a) with 10% of the annual tax due or established ex officio, as the case may be, if the established legal term is exceeded by up to 30 days inclusive; ... b) with 30% of the annual tax due or established ex officio, as the case may be, if the established legal term is exceeded by up to 60 days inclusive; ... c) with 50% of the annual tax due or established ex officio, as the case may be, if the established legal term is exceeded by over 60 days; ... d) with 100.000-500,000 lei, in the case of taxpayers for whom the annual tax due is zero. ... (2) Penalties applied according to the provisions of para. (1) may not exceed the amount of 10 million lei. " ... 43. In Article 74, paragraphs 1 and 2 shall read as follows: "" Art. 74. -(1) Data, information and databases relating to individuals, necessary for the determination of income tax, will be made available free of charge to the Ministry of Public Finance by: a) central and local public administration bodies, public institutions or public interest; ... b) public or private institutions, as the case may be, that lead the record of the population or who register, in any form, contracts, goods and rights, the exploitation of the properties and the like; ... c) natural or legal persons who hold in storage or in administration goods and rights or amounts of money of taxpayers or who have business relations with them. ... ((2) The entities referred to in par. ((1) lit. a) and b) are obliged to provide permanently all the changes operated in their own databases, necessary to update 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 the payment of income tax provided for in the normative acts on certain protection measures as a result of collective redundancies, for staff made redundant, remain valid until their expiry date. ((2) The exemptions from the payment of the tax, in the case of tourist services rendered in rural areas, according to the law, remain in force until December 31, 2004. ... (3) Losses recorded during the period of exemption from taxpayers who benefit from the provisions of par. ((1) and (2) shall not be compensated with the income obtained from the other categories of income in the years concerned and shall not be carried over, representing the final losses of the taxpayers. " ... 45. Article 76 shall read as follows: "" Art. 76. -The incomes from salaries and those assimilated to salaries made from abroad as a result of activities carried out abroad by Romanian individuals residing in Romania do not comply with the globalization procedure. " 46. Article 85 shall read as follows: "" Art. 85. -The date of entry into force of this Ordinance shall be repealed: a) provisions Government Ordinance no. 73/1999 on income tax, published in the Official Gazette of Romania, Part I, no. 419 419 of 31 August 1999; ... b) provisions Government Emergency Ordinance no. 87/2000 to amend and supplement Government Ordinance no. 73/1999 on income tax, published in the Official Gazette of Romania, Part I, no. 302 302 of 3 July 2000; ... c) provisions Government Emergency Ordinance no. 46/2001 to amend and supplement Government Ordinance no. 73/1999 on income tax, published in the Official Gazette of Romania, Part I, no. 157 157 of 29 March 2001; ... d) provisions Government Emergency Ordinance no. 77/2001 for amendment art. 59 of Government Ordinance no. 73/1999 on income tax, published in the Official Gazette of Romania, Part I, no. 291 291 of 1 June 2001; ... e) provisions Government Emergency Ordinance no. 94/2001 for completion art. 6 of Government Ordinance no. 73/1999 on income tax, published in the Official Gazette of Romania, Part I, no. 347 347 of 29 June 2001; ... f) provisions Government Emergency Ordinance no. 235/2000 for completion art. 32 of Government Ordinance no. 73/1999 on income tax, published in the Official Gazette of Romania, Part I, no. 614 614 of 29 November 2000; ... g) provisions of art. 43 43 para. ((1) lit. a) and b) relating to income tax relief granted to individuals, as well as those of art. 43 43 para. ((2) of Law no. 32/2000 on insurance companies and insurance supervision, published in the Official Gazette of Romania, Part I, no. 148 148 of 10 April 2000; ... h) provisions of art. 21 ^ 5 on their applicability to individuals and family associations in Law no. 133/1999 on the stimulation of private entrepreneurs for the establishment and development of small and medium-sized enterprises, published in the Official Gazette of Romania, Part I, no. 349 of 23 July 1999, as amended and supplemented; ... i) provisions regarding the non-taxation of the advantages provided in art. 39 39 para. ((1) lit. d) and to art. 41 41 para. ((2) of Law no. 50/1996 on the salary and other rights of the staff in the bodies of the judicial authority, republished in the Official Gazette of Romania, Part I, no. 563 of 18 November 1999, with subsequent amendments and completions; ... j) provision for rent tax exemption provided for in art. 15 15 para. ((3) of Law no. 10/2001 on the legal regime of some buildings improperly taken over from March 6, 1945 to December 22, 1989, published in the Official Gazette of Romania, Part I, no. 75 75 of 14 February 2001, with subsequent amendments and completions; ... k) provisions art. 77 of the Physical Education and Sports Law no. 69/2000 , published in the Official Gazette of Romania, Part I, no. 200 of 9 May 2000, with subsequent amendments and completions; ... l) the provisions on income tax exemption granted to individuals of the Government Emergency Ordinance no. 9/2000 * *) for amendment Government Emergency Ordinance no. 66/1997 on the exemption from payment of taxes on salaries and/or on income made by foreign consultants for the activities carried out in Romania under loan agreements, published in the Official Gazette of Romania, Part I, no. 93 93 of 1 March 2000; ... m) provisions art. 64 64 of Law no. 188/2000 on bailiffs, published in the Official Gazette of Romania, Part I, no. 559 559 of 10 November 2000; ... n) provisions art. 46 46 of Law no. 184/2001 on the organization and exercise of the profession of architect, published in the Official Gazette of Romania, Part I, no. 195 195 of 18 April 2001; ... o) provisions art. I section 7 7 of Law no. 629/2001 for approval Government Ordinance no. 124/1998 on the organization and functioning of medical offices, published in the Official Gazette of Romania, Part I, no. 724 724 of 13 November 2001; ... p) provisions art. 89 89 para. ((3) on taxation of Law no. 128/1997 on the Status of Teaching Staff, published in the Official Gazette of Romania, Part I, no. 158 of 16 July 1997, with subsequent amendments and completions; ... q) provisions art. III of Government Emergency Ordinance no. 16/2002 for the regulation of fiscal measures, published in the Official Gazette of Romania, Part I, no. 145 145 of 26 February 2002; ... r) the provisions regarding the tax exemption on rent from item 22 22 of the single article of Law no. 241/2001 for approval Government Emergency Ordinance no. 40/1999 on the protection of tenants and the establishment of rent for housing spaces, published in the Official Gazette of Romania, Part I, no. 265 265 of 23 May 2001; ... s) the provisions regarding the exemption from income tax from art. 5 5 para. ((1) of Law no. 118/2002 for the establishment of the merit allowance, published in the Official Gazette of Romania, Part I, no. 189 189 of 20 March 2002; ... t) any other provisions to the contrary. " ... --------- Note ... * *) Government Emergency Ordinance no. 9/2000 has been rejected by Law no. 421/2001 , published in the Official Gazette of Romania, Part I, no. 402 402 of 20 July 2001. + Article 2 The provisions of this law shall enter into force from January 1, 2003, except for the provisions of art. I section 5 5-art. 6 lit. f ^ 1) and f ^ 2), which takes effect with the first of the month following the publication in the Official Gazette of Romania, Part I. + Article 3 Government Ordinance no. 7/2001 on income tax, published in the Official Gazette of Romania, Part I, no. 435 of August 3, 2001, will be republished in the Official Gazette of Romania, Part I, giving the texts a new numbering. This law was adopted by the Senate at the meeting of 24 June 2002, in compliance with the provisions of art. 74 74 para. (2) of the Romanian Constitution. p. SENATE PRESIDENT, DORU IOAN TARACILA This law was adopted by the Chamber of Deputies at its meeting on June 25, 2002, in compliance with the provisions of 74 74 para. (2) of the Romanian Constitution. CHAMBER OF DEPUTIES PRESIDENT VALER DORNEANU ------------
