Unique Return for individuals

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Emergency Ordinance no. 18/2018 regarding the adoption of fiscal-budgetary measures was published in the Official Gazette no. 260/23.03.2018.

The main news of the Ordinance is the introduction of the Unique Return for Individuals that combines seven tax forms used so far (200, 201, 220, 221, 600, 604, 605). The Unique Return model and completion instructions should be issued by 22 April 2018.

The earnings made in the previous year, the estimated earnings for the current year and the social contributions due for the current year shall be declared in the Unique Return for individuals.

The Return should be filed for incomes from independent activities, from the disposal of the use of goods, from agricultural activities, forestry and fish farming, from intellectual property rights, respectively, when they are taxed in real system.

The Ordinance distinguishes between the intellectual property rights taxed in the real system, for which the Uniques Return is filed, with the intellectual property rights paid under an assignment contract (for which the Return is not filed).

For the revenues made during 2017, the Return is submitted until 15 July 2018. In 2018, the individual taxpayers are not required to submit the Unique income tax return and social contributions for the incomes realized in 2017 if by the date of entry in force of this Emergency Ordinance, they filed with the fiscal body the declaration regarding the obtained incomes – form 200 or form 201.

Individuals who submitted for the 2018 the Form 220 – Estimated Income,  Form 221 Farm Income Received by Tranches, respectively Form 600, shall submit the Unique Return by 15 July 2018, and that will replace those forms.

For 2018, the deadline for submitting the Unique Return shall be 15 July. Starting 2019, the deadline will be March 15th. In 2018, the Return will be submitted either in printed form or by online submission, and starting 2019 only online transmission will be possible.

The annual tax due is established by the taxpayers in the Unique Return and is paid up to 15 March inclusive of the year following the year of obtaining the income. For example, for 2018, taxes and contributions will be paid until 15 March 2019.

The Ordinance establishes bonuses. Thus, for the year 2018, the bonuses are:

– 5% if the Unique Return is submitted online until 15 July 2018;

– 5% of the estimated annual income tax fully paid up to 15 December 2018;

– 10% if both of the above conditions are met.

Employees and individuals cashing intellectual property rights may request directly the income payer to direct 2% of the income tax to non-profit entities.

Individuals who obtain intellectual property rights do not due health or pension contribution to these earnings, if they also have the quality of an employee and earn salary income.