4. The Unique Declaration on Income and Social Contributions for Individuals

We continue the series of articles dedicated to individuals, about taxes and duties and how to highlight them in the Unique Declaration.

The articles in this series address those organized in independent activities such as:

• PFA – Authorized Physical Person
• II – Individual Enterprise
• IF – Family Enterprise
• PFI – Independent Physical Persons
• Liberal professions

Legal notice: The text of the articles is in accordance with the EMERGENCY ORDINANCE no. 18 of 23 March 2018 for amending and completing the Law no. 227/2015 regarding the Fiscal Code. The Ordinance was published in the Official Gazette and it is in force but may be amended by the law of approval.

4. The Unique Declaration on Income and Social Contributions for Individuals

Unique Declaration or Declaration 212 – on Income Tax and Social Contributions Payable by Individuals.

Taxpayers who carry out their activity individually or in a form of association without legal personality are required to submit to the competent tax body the Unique Declaration on Income Tax and Social Contributions due by individuals for the estimated revenue to be achieved each fiscal year , irrespective of whether they recorded losses in the previous fiscal year, up to March 15 inclusive of each year.

The Unique State Declaration combines multiple Declarations into a single one.

The removed Declarations are:

200 – Revenues from Romania in the previous year

201 – Income from abroad

220 – Estimated income / income norm for current year

221 – Declaration of income rules in agriculture

600 – Optional or mandatory CAS and CASS payment

604 – CASS payment option for people without income

605 – CASS payment waiver for people without income

The taxpayers are required to submit the Unique Tax Declaration, which determines the net income in real system, according to the law or according to the taxpayer’s option, on the basis of the accounting data:

a) income from activities of production, trade, provision of services;

b) Income from intellectual property rights, except for income for which the tax is withheld at source;

c) income from the exercise of a liberal profession;

d) income from renting for tourist purposes rooms located in personal property dwellings, having a capacity exceeding 5 rooms;

e) income from renting for touristic purposes rooms located in personal property dwellings, having a tourist accommodation capacity between one and five rooms inclusive, for which the net income in real system has been chosen based on the accounting data;

f) income from the rental of tourist accommodation of rooms located in private dwellings, having a tourist accommodation capacity between one and five rooms, including in the case of exceeding in the year the number of 5 rooms for rent, for which, according to of the law, net income is determined in real system based on accounting data;

g) income from the disposals of the use of goods from more than 5 rental or sub-lease contracts, classified as income from independent activities;

h) Income from the disposal of the use of goods from up to five lease contracts including, for which, according to the taxpayer’s option, the net income is determined in real system, based on the accounting data;

i) Income from intellectual property rights for which, according to the taxpayer’s option, net income is determined in real system, based on accounting data;

j) income from agricultural activities for which there is no obligation to establish income rules;

k) income from forestry and fish farming.

The persons without income who choose to be insured in the public health system (CASS for persons without income) have to submit the Unique Declaration.

The Unique Taxation and Compulsory Declaration is not completed for the following income categories:

a) incomes from intellectual property rights, the imposition of which is final – withholding;

b) incomes in the form of rent, whose taxation is final – withholding from the income payer.

c) incomes in the form of salaries and salary-assimilated incomes, for which the information is contained in the Specific Declarations;

d) investment incomes, whose taxation is final (interest income, financial transactions, etc);

e) incomes from prizes and gambling, the imposition of which is final;

f) incomes from pensions;

g) incomes from the transfer of the real estate assets from the personal patrimony;

h) incomes from other sources, except those provided under art. 116.

Submission and payment term

The Unique Declaration shall be submitted by March 15 inclusive of the year for which the tax and the payment contributions are established.

Payments can be made at any time during the year, the payment deadline is 15 March of the following year.

By exception, for 2018, the deadline for submitting the Unique Declaration is 15 July 2018.

How and where the Unique Declaration is submitted

For the year 2018, it is also accepted to submit it on paper – at the booth or by post. From 2019, the Declaration will only be submitted online. It is submitted to the fiscal body within which the taxpayer is domiciled.

The Declaration is also submitted electronically by electronic means of remote transmission: via the Virtual Private Space by the taxpayer or by the empowered person with a qualified digital certificate.

Other situations when the Unique Declaration is submitted

Taxpayers may change their estimated earnings during the year, in which case they will once again submit the Unique Declaration (rectifying) and recalculate the social contributions due.

Taxpayers who determine the net income based on income norms and those for which expenditure is determined using flat rate system and opted for the determination of net income in real system submitted Declaration regarding income tax and social contributions payable by individuals duly completed .

Taxpayers who derive income from employment and / or agricultural activities imposed in real system, forestry and fisheries and who enter temporary suspension of activity in the fiscal year, according to legislation, are required submit to the competent tax body the Unique Declaration on Income Tax and Social Contributions due by individuals, within 30 days of the occurrence of the event.

After the end of the fiscal year

Taxpayers who, individually or in a form of association, realize income / losses from self-employment, intellectual property rights, property disposals, agricultural activities, forestry and fish farming, determined in a real system, are required to submit the Unique Declaration tax on income tax and social contributions to the competent fiscal body for each fiscal year until March 15, inclusive of the year following the year of income for the purpose of completing the annual income tax.

The Unique Declaration of Income Tax and Social Contributions due by individuals is filled in for each source within each income category. For income earned in a form of association, the declared revenue will be the net income / loss from the combination.

The Unique Declaration is a tax claim. The social security contribution and the tax are calculated by the taxpayers by applying the contribution quota and are paid by the contributors within the term stipulated by the law. ANAF will no longer issue taxing decisions following the submission of the Unique Declaration (exception for the revenues obtained in 2017 for which tax decisions will be issued).