5. Taxation of income from self-employment incomes for which the annual net income is determined on the basis of the income rules and the way of its reflection in the Unique Declaration 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. 

5. Taxation of income from self-employment incomes for which the annual net income is determined on the basis of the income rules

Self-employed taxpayers for whom annual income is established on the basis of income rules are required to set the annual tax due on the basis of the Unique Taxation and Social Contribution Declaration due by individuals by applying the 10% adjusted income, the tax being final.

The payment of the determined annual tax is made to the state budget until 15 March of the year following the year of income.

For taxpayers who are taxed on the income tax, the basis of calculation to which the 10% percentage applies is the value of the income tax set by the Ministry of Finance.

Taxpayers can adjust the annual income rules in the Unique Taxation Declaration and Social Contributions by individuals.

The adjustment of the annual income rules is done by the taxpayer by applying the correction coefficients published by the regional general directorates of public finances, respectively of Bucharest Municipality, to the annual income norms.

If a taxpayer carries out two or more activities generating income from self-employment, other than income from liberal professions and intellectual property rights, the net income from these activities is determined by summing the level of income rules for each activity.

Taxpayers carrying out activities for which the net income is determined on the basis of income rules are required to fill in only the revenue share of the Tax Registry and have no accounting records obligations.