Leasing incomes

According to the Tax Code and the Enforcement Guidelines given for its application, the gross income obtained from leasing the agricultural goods is established based on the legal report/agreement concluded between the parties and it represents the total amounts in money that were received and/or the equivalent in lei of the incomes earned in kind.

In case the leasing is expressed in kind, the assessment in lei is made based on the average prices of the agricultural products, established by decisions of the county councils and the General Council of Bucharest Municipality.

Net income from leasing

• it is determined by deducting from the gross income the expenses determined by applying the 40% rate to the gross income;
• in order to recognize the expense deductibility in the 40% rate of the gross income, the lessor is not required to present supporting documents to the tax body.

Tax on income from leasing

• it is calculated by withholding at the income payment, by applying the 10% rate to the net income, the tax being final.
• it is declared by the income payer by means of Form 112 and it is paid to the state budget until the 25^th, inclusive of the month following the one in which it was withheld;

Social health insurance contribution (CASS)

If the natural person earns incomes from leasing, obtained from a single income payer and the estimated net level of these incomes is at least equal to 12 national minimum gross salaries in force in the year for which the contribution is due, the income payer is required to calculate, retain and pay the CASS by means of Form 112.  The level of the contribution calculated and retained at each payment by the income payer is that fixed by the parties up to the amount of the owed contribution.

If the natural person earns leasing incomes from several sources, and the estimated net incomes from at least one income payer are equal to or greater than the level of 12 national minimum gross salaries in force in the year for which the contribution is due, the taxpayer will designate in the agreement concluded between the parties the income payer who will calculate, pay and declare the contribution and from whom the income earned is at least equal to 12 national minimum gross salaries. The designated income payer submits the Form 112 by the 25^th, inclusive of the month following the one for which the incomes are being paid.

The taxpayer, a natural person, is required to submit the "Single statement" if the level of the leasing net income obtained from several sources, estimated to be earned on each source, is below 12 national minimum gross salaries in force in the year for which the contribution is due, but the cumulated net income is at least equal to 12 national minimum gross salaries.

In the case of the natural person who earns leasing incomes from several sources, below 12 national minimum gross salaries, but cumulated, these incomes are above the level of 12 national minimum gross salaries and who has submitted to the tax authority the Single statement, and during the year he/she concludes with an income payer an agreement whose value is above the ceiling of 12 national minimum gross salaries, the self-taxation system is applied and the contribution is determined by means of the "Single statement on income tax and social contributions owed by natural persons".