Starting with 2018, a new annual tax return will have to be filed by individuals (natural persons) who derive taxable income of a different nature than salary. It is the “single form 212”, which was published by ANAF Order 888/2018 on March 27, 2018. The new tax return will replace several tax forms previously used by taxpayers to declare different types of income on annual basis, such as forms 200, 201, 220, 600, 604 and 605.
The official name of the new annual tax return is: “The Single Tax Return regarding income tax and social contributions due by individuals”.
Who has the obligation to file the new tax return?
The obligation to submit the new annual tax return is applicable to all taxpayers who are individuals, and who earn income taxable in Romania under the form of:
- Income from independent activities
- Income from disposal of the use of property (rent)
- Income from investments (e.g. transfer of securities, dividends, interests)
- Income from agricultural activities, forestry and fish farming
- Income from gambling
- Income from other sources (e.g. transfer of debt)
The obligation to file the tax return applies both for Romanian citizens that are tax residents in Romania, as well as for foreign citizens who meet the conditions of tax residency according to the Romanian tax legislation.
Form 212 will have to be filed both to pay taxes and social contributions for the previous tax year, as well as to estimate and pay tax in advance on Romanian sourced income for the current year. Thus, in order to declare income for both situations at the same time, the single statement contains two parts:
- Chapter I – Income data earned during the previous year
- Chapter II – Income data estimated to be derived from Romania in the current year
With the publication of the new annual tax form a new deadline for filing was introduced, through the amendment of the Romanian Tax Code. Thus, if the deadline for submission of the old form was 25 May, the deadline for the new tax return was set for 15 March. For this year, however, given the delayed introduction of the new form, the deadline was set, by way of exception, for 15 July 2018, and recently the deadline was extended to 31 July 2018.
Practically, until 31 July 2018, any taxpayer who during 2017 earned any type of income among those described above (which must be declared by the income beneficiary) will submit the tax form 212. Using the same form, one must also declare the estimated revenues to be derived from Romania during current year 2018, if any.
In order to encourage early payment of taxes due for the current year, the Ministry of Finance proposed for 2018 the following bonuses/discounts from the income tax due:
- 10% of the tax due for taxpayers submitting the tax return online until July 15, 2018, and fully paying the taxes due until December 15, 2018
- 5% of the tax due for taxpayers submitting the tax return online until July 15, 2018 and fully paying the taxes due by March 15, 2019
- 5% of the tax due for taxpayers submitting the tax return under printed form until July 15, 2018, and fully paying the taxes due until March 15, 2019.
Individuals who do not derive taxable income and who want to opt for the payment of the health insurance contribution must also file the tax form.