If there are people who rent rooms for tourist purposes, they should know the applicable taxation regimes, and, in the following, we would like to draw the attention towards certain aspects that could influence the chosen business strategy.

Legal provisions

According to art. 83 from the Tax Code the taxable income from rental and leasing goods is that income, in money and/or in kind, that come from the rental and leasing of movable and unmovable assets, obtained by the owner/ usufructuary/ legal holder, other that the income from independent activities.

Also, the Tax Code provides the fact that the category of income from rental and leasing assets includes income obtained by an owner from renting rooms situated inside properties owned by him/her, having an accommodation capacity for the purposes of tourism between one and 5 rooms included.

We will not get into detail regarding the situation of the people that rent a number of rooms higher than 5, because the income obtained in this case is qualified as income from independent activities for which the annual net income is determined based on the standard income or in the actual income system and is subject to the taxation according to rules applicable for independent activities.

In the case of income obtained from renting a number of more that 5 rooms for tourism purposes, the income beneficiary owes income tax as an annual income standard, income standard published annually and established by the tax authorities based on specific criteria indicated by the Ministry of Economy, Trade and Tourism together with the Ministry of Public Finances.

With that being said, the people that rent less than 5 rooms for torusit purposes, have the right to determine the annual net income in the actual income system, based on the accounting data, and if they choose this option, they have the obligation to fill in the Tax Record Registry.

The option shall be exercised for each tax year, by filling the declaration regarding the estimated income/income standards for the current year and submitting the form to the competent tax body until January 31st, inclusively, or within 30 days from the date of obtaining the income if this event takes place during the year.

In this situation, as in the case of determining the tax based on an income standard, income tax anticipated payment shall be owed, based in the estimated information, that shall be paid in two equal instalments until July 25th and November 25th of each year.

Regarding the anticipated payment, according to art. 86, para. (3) and (4) highlight the fact that „(3) During the tax year, the taxpayers have to make anticipated payments in the form of tax to the state budget, in the account of the annual owed tax, in two equal instalments, thus: 50% of the tax until July 25th, inclusively, and 50% of the tax until November 25th, inclusively. If the taxation decision for the current fiscal year was not issued until the 1st of November, as well as in the case of the taxpayers that obtain the income defined at art. 83 para. (3) after the date of the 1st November of the current fiscal year, anticipated payments shall not be established any more, and the annual net income shall be subject to taxation according to the tax return issued based on the declaration regarding the achieved income.

(4) The competent tax body establishes the anticipated payments by applying a rate of 16% over the annual net income estimated from the declaration regarding the estimated income/income standard and issues the taxation decision, that is then communicated to the taxpayers, according to the established procedures by the order of the A.N.A.F. president. For the declarations regarding the estimated income/ income standard submitted in November or December anticipated payments shall not be established any more, the net income related to the period until the end of the year following to be subject to taxation, according to the tax return issued based in the declaration regarding the achieved income.”

Besides the annual income owed by the people that rent more than 5 rooms, owned by them, for tourism purposes, they are obligated to pay the mandatory social contributions, respectively the payment of the social health contribution, in the quota of 5,5%from the achieved net income..

Practical aspects

In the context of the above, each person that has the intent to rent less than 5 rooms, for tourist purposes, should analyse which of the alternatives is more appropriate to their situation.

The tax determined on the basis of the income standard for certain rented rooms remains unchanged regardless of the income level, thus there can be scenarios in which in relation to the period estimated to be occupied by tourists and the obtained income, the earning could be reduced by the owed tax.

For these situations the option regarding the establishing of the income in the actual income system could represent a more suitable solution, whereas the income tax varies regarding the obtained income.

For these situations the option regarding the establishing of the income in the actual income system could represent a more suitable solution, whereas the income tax varies regarding the obtained income.
Articol publicat prima oara pe Avocatnet.ro.