The new single declaration form (212) – important issues

The Official Gazette (Part I) no. 10 of January 5, 2022 published the ANAF Order no. 2127 for the approval of the model, content, manner of submission and management of form 212 “Single declaration on income tax and social contributions due by individuals “.

On the website of the national Agency for fiscal Administration (ANAF), on January 5, 2022, the smart PDF of form 212 was published:

• The modification of form 212 comes in the context in which important changes were made to the Fiscal Code, through Law no. 296/2020 and Government Ordinance no. 8/2021, normative acts that mainly concerned the following aspects
• the regulation of some fiscal obligations for the natural persons who realize incomes representing remunerations, indemnities and other similar incomes, as well as any other advantages, in money and / or in kind, obtained from abroad as members of the board of directors, members of the management,members of the supervisory board, administrators, directors, auditors, founding members, representatives in the general meeting of shareholders or any other activities carried out in similar functions for the activity carried out abroad to employers / income payers who are not permanently established and are not tax residentsin Romania
• regulation of the fiscal regime applicable in case of incomes realized by taxpayers, other than the holder of the property right, former owner or his legal or testamentary heirs, from the National Authority for Property Restitution, as a result of capitalization of the acquired right related to the measures for the completion of the process of restitution, in kind or by equivalent, of the buildings abusively taken over during the communist regime in Romania according to the provisions of Law no. 165/2013;

– regulation of a new mechanism for establishing and declaring the annual income from renting for tourist purposes the rooms located in personal property dwellings; Thus, the taxpayers who make income from renting for tourist purposes a number of rooms between one and 5 rooms inclusive determine the annual income based on income norms and complete, for each fiscal year, until May 25 inclusive of the year following of income, the single declaration regarding the income tax and the social contributions due by the natural persons.

Introduction of a new category of income from agricultural activities for which the annual income is determined on the basis of income standards (fodder plants).

Another normative act which led to the amendment of D212 is EMERGENCY ORDINANCE no. 111/2021 for the establishment of social protection measures for employees and other occupational categories in the context of the prohibition, suspension or limitation of economic activities caused by the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus, the document was regulated by which monthly allowances were granted to professionals and natural persons who receive income exclusively from copyright and related rights.

For these incomes, the taxpayers owe income tax, social insurance contribution and social health insurance contribution.

The fiscal obligations are established by the taxpayer and are declared by the Single Declaration regarding the income tax and social contributions due by individuals, until the term provided in article 122 paragraph (1) of Law no. 227/2015 on the Fiscal Code, with amendments and completions subsequent.

According to ANAF Order no. 2127, the changes compared to the current form are mainly the following:

1. the introduction in Chapter I, section 1 of the form of a new subsection, subsection 3, which is completed by the natural persons who realize, during the reporting year, incomes imposed on the basis of the income norms from the rental for tourist purposes of the rooms located in personal property housing;
2. introduction in Chapter I, section 2, of two distinct subsections, as follows

– subsection 1 – for establishing and declaring the income tax generated from abroad;

– subsection 2 – for the establishment and declaration of social contributions due by taxpayers, for income representing remuneration, allowances and other similar income, as well as any other benefits, in cash and / or in kind, obtained from abroad as members of the board administration, members of the board of directors, members of the supervisory board, administrators, directors, auditors, founding members, representatives in the general meeting of shareholders or any other activities performed in similar functions for the activity carried out abroad at employers / income payers who are not based permanently and are not tax residents in Romania;

1. the introduction in Chapter I of a separate section, section 7, for the establishment and declaration of the fiscal obligations owed by the taxpayers, for the indemnities provided by the Government Emergency Ordinance no. 111/2021;

– updating the section “Summary of the obligations regarding the realized income tax and the due social contributions, established by the current declaration”, from Chapter I of the form, which becomes section 8, as follows:

• the introduction of the necessary fields for finalizing the annual tax due with the advance payments withheld at source in case of incomes made by taxpayers, other than the owner of the property right, former owner or his legal or testamentary heirs, from the National Authority for Property Restitutionof the capitalization of the acquired right of claim in connection with the measures for finalizing the process of restitution, in kind or by equivalent, of the buildings abusively taken over during the communist regime in Romania according to the provisions of Law no.165/2013;
• the introduction of the fields regarding the fiscal obligations owed by the taxpayers according to the Government Emergency Ordinance no. 111/2021;

1. completing the table “Vegetable products” from subsection 3, Chapter II of the form with a new category of income from agricultural activities for which the annual income is determined on the basis of income norms – “Forage plants”.

At the same time, the instructions for completing the single declaration have been updated accordingly.

The new form 212 will be used for declaring the income tax and social contributions due starting with 2021, as well as for declaring the estimated income tax and social contributions due starting with 2022.

Instructions for completing D212:

According to O.ANAF no.2127, the declaration is completed and submitted by the natural persons who in the taxation year have realized, individually or in a form of association, incomes / losses from Romania and / or from abroad and who owe tax on income and mandatory social contributions, according to the provisions of the Fiscal Code.

The declaration is also submitted by the following categories of taxpayers:

– professionals, as regulated by Article 3 (2) of Law no. 287/2009 on the Civil Code, republished, with subsequent amendments, and individuals who obtain income exclusively from copyrights and related rights who have benefited from:

• the indemnity provided in article XV of the EMERGENCY ORDINANCE no. 30/2020 for the modification and completion of some normative acts, as well as for the establishment of measures in the field of social protection in the context of the epidemiological situation determined by the spread of SARS-CoV-2 coronavirus, approved with modifications and completions by Law no. 59/2020, with subsequent amendments;
• the allowance provided for in Article 3 of the EMERGENCY ORDINANCE no. 132/2020 on support measures for employees and employers in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus, as well as to stimulate employment growth, approved with amendments and completions by Law no. 282/2020, with subsequent amendments and completions;
• the allowance provided for in Article 6 (1) letter a) and / or letter b) of the EMERGENCY ORDINANCE no. 111/2021 for the establishment of social protection measures for employees and other professional categories in the context of prohibition, suspension or limitation of economic activities, determined by the epidemiological situation generated by the spread of SARS-CoV-2 coronavirus;

lawyers who benefited from the indemnity provided in Article XV of the EMERGENCY ORDINANCE no. 30/2020 for amending and supplementing normative acts, as well as for establishing measures in the field of social protection in the context of the epidemiological situation caused by the spread of SARS-CoV coronavirus 2, approved with amendments and completions by Law no. 59/2020, with subsequent amendments.

The declaration is completed and submitted by the individuals who do not make income and who opt for the payment of the social health insurance contribution.

Deadline for submission of D212:

The declaration is submitted:

– until May 25, inclusive, of the year following the year of the realization of the incomes in order to declare the realized income and to establish / finalize the annual income tax and the social contributions;

– until May 25, inclusive of each year, for the establishment and declaration of the estimated income tax / income norm to be made in each fiscal year, as well as for the declaration and establishment of the due social contributions;

– until May 25, inclusive of the year following the year of realization of the income, under the sanction of forfeiture, in case of exercising the option regarding the destination of an amount representing up to 3.5% of the tax due on the annual net taxable income / established annual net taxable gain according to article 123 paragraph (3) of the Fiscal Code, for the support of non-profit entities that are established and operate under the law and of the cult units, as well as for the granting of private scholarships.

The unique declaration is submitted within 30 days from the date of the event / conclusion of the contract between the parties, in the case of taxpayers who start an activity during the fiscal year or of those who obtain income from the transfer of use of personal assets, other than rental income for which the taxation is final and which did not have, until that date, the obligation to submit the single declaration.

The unique declaration regarding the income tax and the social contributions due by the natural persons can be corrected by the taxpayers on their own initiative, whenever the current information does not correspond to those from the previously submitted declaration, by submitting a rectifying declaration under the conditions provided by Law no. 207/2015 on the Fiscal Procedure Code, with subsequent amendments and completions.

It is important to mention that the rectifying declaration is drawn up on the same form, ticking with X the box / boxes “Correcting declaration regarding Chapter I” and / or “Correcting declaration regarding Chapter II”, completing, as the case may be, chapter I ” Data on income tax and social security contributions due for the year……… ” and / or Chapter II “Data on the estimated income tax / income norm to be made in Romania and the social contributions due for the year……….”.

The rectifying declaration is completed by entering all the data and information provided in the chapter subject to rectification, including those that do not differ from the initial / previous declaration.

The corrective statement is used for:

• correction of the income tax, as well as of the social contributions due by the natural persons;
• modification of the identification data of the natural person;
• modification of some data regarding the category / source of income or their level, according to the law;
• modification of some data regarding the social insurance contribution and the social health insurance contribution;
• correcting other information provided by the form. When rectifying the declaration, the following will be taken into account:
• the initial statement is the statement that does not have any check mark selected;
• it is allowed to submit a single initial declaration;
• the corrective statement is the statement with at least one selected corrective tick (in Chapter I or Chapter II or in both chapters);
• rectifying statement that rectifies both chapters (chapter I and chapter II) must have both rectification marks selected.

Taxpayers can rectify the estimated income tax until December 31 of the taxation year.

We mention that the taxpayers who do not have the obligation to complete chapter I of the declaration and who rectify the declaration under the conditions provided by Law no. 207/2015 on the Fiscal Procedure Code, with subsequent amendments and completions.

Taxpayers who earn income from independent activities and / or from agricultural, forestry and fish farming activities for which the tax is determined in the real system and who cease their activity during the fiscal year, as well as those who enter temporary suspension of activity, according to the relevant legislation, have the obligation to submit to the competent fiscal authority the declaration within 30 days from the date of the event.

Taxpayers who obtain income from the transfer of the use of personal assets, in cases of changes in contractual clauses or in case of termination, during the fiscal year, of contracts concluded between the parties, for which the determination of gross income is made according to Article 120 paragraph ( 7) of Law no. 227/2015 on the Fiscal Code, with subsequent amendments and completions, and in which the rent is expressed in lei or represents the equivalent in lei of an amount in foreign currency, submit the declaration within 30 days from the date of the event .

Taxpayers who make income from independent activities for which the net income is determined on the basis of income norms, in case of cessation of activity during the year, respectively temporary interruption, are obliged to submit the declaration to the authorities within 30 days from the event. competent tax authorities and to recalculate their income tax.

The supporting documents on the basis of which the annual income norms are reduced are kept at the fiscal domicile of the taxpayers.

Individuals with severe or severe disabilities who earn income from independent activities / agricultural activities, individually and / or in a form of association, determined on the basis of income norms or in real system, submit the declaration within 30 days from obtaining the certificate attesting to the degree of disability in order to recalculate the annual net income and the tax due.

Legal basis:

– ANAF Order no. 2127/2021 for the approval of the model, content, manner of submission and management of form 212 “Single declaration on income tax and social contributions due by individuals”;

– Government Ordinance no. 8/2021 for the amendment and completion of Law no. 227/2015 on the Fiscal Code;

– Law no. 296/2020 for the amendment and completion of Law no. 227/2015 on the Fiscal Code.