BR Exclusive: The draft law for the Unified Tax Form is finalised! Top 11 changes in tax payments for individuals

Ioana Erdei 09/03/2018 | 11:57

The unified tax form draft law was published by the ministry of Finance yesterday evening. The document will be approved by the government next week. Individuals with incomes from independent activities will pay mandatory Social and Health contributions if the amount will be over RON 22.800.

Business Review analised the document and chose the 11 most important changes for individuals.

  • Individuals will be the ones to choose the category for Health Contribution payments, according to the income they estimated for the current year.
  • If the anual estimated income earned from independent activities, rentals, agriculture activities, or investments, is equal or higher than RON 22.800, those individuals will owe RON 2.280  per year for Health insurance.
  •  Individuals that start, during the fiscal year, to earn incomes from independent activities over RON 22.800, are required to submit the unified tax form in 30 days from the moment the new contract was signed.
  • If during the fiscal year the incomes from independent activities are temporarely or permanently suspended, idividuals are required to submmit again the unified tax form in 30 days after the financial situatian changed. With this submission, the Health contribution payment
  • Individuals who estimated, for the current year, a total income from one or more sources, that is over RON 22.800, and at the end of the year the real income is under the limit stated above, will owe 6 moths worth of Health Contributions (10% out of the net income).
  • Individual taxpayers who estimated a total annual income from different sources amounting less than 12 minimum gross wages (RON 1,900 x 12 = RON 22,800), but at the end of the year declared a real income being equal or superior to 12 minimum gross wages, have to pay pension contributions (CASS) calculated for 12 minimum gross wages. The payment term is 15th of March of the next year of the period the income has been obtained.
  • The unified tax statement should be filed until March 15, but taxpayers have the option to rectify it until payment term. As an exception, in 2018 the unified tax statement should be filed until July 15.
  • Individual taxpayers can pay pension and healthcare contributions anytime during the fiscal year, until the payment deadline (March 15 of the next year).
  • In order to be eligible to enroll in public health coverage, persons who have no income should file the unified tax statement and pay health contribution calculated for six minimum gross wages. This payment automatically give a right to 12 month health coverage.
  • Individual taxpayers will have the option to pay health contribution even if they estimate total annual income lower than or equal to RON 22,800 or have no income.
  • Individual taxpayers with total annual income lower than RON 22,800 will have to pay health contributions as follows:
  • a) If they file the unified tax statement until the legal term, pay health contribution is calculated for six minimum gross wages.
  • b) If they file the unified tax statement after the legal term, pay health contribution is calculated for 12 minimum gross wages.
  • For individual taxpayers receiving payments for intellectual property rights, collecting taxes at source system      will be maintained, with 10 percent for health contribution and 25 percent for pension contribution. Contributions payments are mandatory for a total annual income exceeding 12 minimum gross wages.
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