Single declaration – main changes

ANAF Order no.2541 approving the model, content, submission and management of form 212 ”Single declaration on income tax and social contributions owed by individuals” was published in the Official Gazette (Part I) no.1246 of 23 December 2022.

 D212 is completed and submitted by individuals who, in the tax year, have realized, individually or in a form of association, income/losses from Romania or/and from abroad and who owe income tax and compulsory social contributions, according to the provisions of the Tax Code.

The premise of this order:

By OG no.16/2022 for the modification and completion of Law no.227/2015 on the Fiscal Code, repeal of some normative acts and other financial-fiscal measures and OUG no.130/2021 on some fiscal-budgetary measures, extension of some deadlines, as well as for the modification and completion of some normative acts, a series of modifications and additions were made to the Fiscal Code.

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

• professionals, as regulated by article 3 paragraph (2) of Law no. 287/2009 on the Civil Code, republished, with subsequent amendments and additions, and individuals who obtain income exclusively from copyright and related rights that have benefited from:
• the allowance provided for in Article 3 of Government Emergency Ordinance No. 132/2020 on support measures for employees and employers in the context of the epidemiological situation caused by the spread of the SARS-CoV-2 coronavirus, as well as for stimulating the growth of employment, approved with amendments and additions by Law No. 282/2020, as amended and supplemented;
• the indemnity provided for in Article 6 paragraph (1) letter a) and b) of the Government 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, caused by the epidemiological situation generated by the spread of the SARS-CoV-2 coronavirus, with subsequent amendments;
• the indemnity provided for in Article 6 paragraph (1) letter a) or letter b) of the Government Emergency Ordinance no.2/2022 on the establishment of some social protection measures for employees and other professional categories in the context of prohibition, suspension or limitation of economic activities, caused by the epidemiological situation generated by the spread of SARS-CoV-2 coronavirus, as well as for the modification and completion of some normative acts, with subsequent modifications.

It is important to mention that the declaration is completed and submitted by individuals who do not earn income and who opt for the payment of the social health insurance contribution.

The general deadline for filing the single tax return is also 25 May 2023.

The changes/completions mainly concerned the following aspects:

– how to establish the basis for calculating the tax on income from the transfer of the use of goods, in the sense that, from 1 January 2023, gross income represents annual taxable income;

– to regulate tax obligations for individuals who obtain pension income from abroad for which the social health insurance contribution is due, respectively for the part exceeding the monthly amount of 4,000 lei, in compliance with the provisions of the European legislation applicable in the field of social security, as well as the agreements on social security systems to which Romania is a party;

– modification of the annual calculation base of the social security contribution, in the case of persons who earn income from self-employment and/or income from intellectual property rights, from one or more sources and/or categories of income, whose cumulative value is at least equal to 12 gross minimum wages per country, in force at the deadline for submission of the Single Declaration on income tax and social contributions due by individuals – Chapter II “Data on the tax on estimated income/income to be earned in Romania and social contributions due”, as follows:

The annual basis for calculating the social insurance contribution is the income chosen by the taxpayer, which cannot be less than:

1. a) the level of 12 gross minimum wages per country, in the case of income between 12 gross minimum wages, inclusive, and 24 gross minimum wages per country;
2. b) 24 gross minimum wages per country in the case of income equal to or more than 24 gross minimum wages per country.

– modification of the annual basis for calculating the social health insurance contribution, in the case of persons who earn income from self-employment, income from intellectual property rights, income from association with a legal person, taxpayer according to the provisions of Title II or Title III of the Tax Code, income from the transfer of the use of goods, income from agricultural, forestry and fish farming activities, income from investments and income from other sources, from one or more sources and/or categories of income, whose cumulative value is at least equal to 6 gross minimum wages per country, in force at the deadline for submission of the Single Return on income tax and social contributions due by individuals – Chapter II “Data on tax on estimated income/type of income to be realized in Romania and social contributions due”, as follows:

The annual basis for calculating the social insurance contribution is:

a) the level of 6 gross minimum wages per country, in the case of income realised between 6 gross minimum wages, inclusive, and 12 gross minimum wages per country;

b) the level of 12 gross minimum wages per country, in the case of realised income between 12 gross minimum wages and 24 gross minimum wages per country;

c) 24 gross minimum wages per country, in the case of earnings of at least 24 gross minimum wages per country.

By OUG no.2/2022 on 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, as well as for the modification and completion of some normative acts, with subsequent modifications and completions, it was regulated the granting of monthly allowances for professionals and individuals who obtain income exclusively from copyright and related rights. For this income, taxpayers are liable to income tax, social security contributions and health insurance contributions. Tax obligations are determined by the taxpayer and declared by means of a single declaration on income tax and social security contributions owed by individuals, by the deadline provided for in Article 122 paragraph (1) of the Tax Code.

The changes to the current form are mainly the following:

·        the introduction in Chapter I, section 2 of the form of a new subsection, subsection 3, to be completed by individuals who obtain pension income from abroad for which health insurance contributions are due;

·        the deletion from Chapter I of the section on the determination and declaration of tax liabilities owed by taxpayers in respect of the allowances provided for in OUG No 30/2020;

·        the introduction in Chapter I of a separate section on the establishment and declaration of tax liabilities owed by taxpayers in respect of allowances provided for in OUG No 2/2022;

·        updating the section “Summary of obligations concerning tax on earned income and social contributions due, established by the current declaration” in Chapter I of the form, which becomes section 8, by introducing the fields concerning the tax obligations due by taxpayers according to OUG no. 2/2022, as well as deleting the fields concerning the tax obligations due by taxpayers according to GEO no. 30/2020;

·        introducing in Chapter II, Section 1, Subsection 1, point B, row 3, the indicator “Annual taxable income” to be completed by taxpayers who obtain income from the transfer of goods;

·        the introduction in Chapter II, Section 2 of the form, in subsection 1 and subsection 2, of fields for determining and declaring social insurance contributions and health insurance contributions due by taxpayers, depending on whether they fall within the minimum annual limit, in accordance with the law.

·        updating the instructions for completing the single declaration accordingly.

Submission deadline:

Under current regulations, the D212 is applied:

– by 25 May of the year following the year of income in order to declare the income and to establish/define the annual income tax and social contributions;

– up to and including 25 May of each year, for the establishment and declaration of the tax on the estimated income/income to be realised in each tax year, as well as for the declaration and establishment of the social contributions due;

– up to and including 25 May of the year following the year in which the income is earned, under penalty of forfeiture, in the case of exercising the option to allocate an amount representing up to 3.5% of the tax due on the annual net taxable income/taxable net profit, for the support of non-profit entities that are established and operate in accordance with the law and units of worship, as well as for the granting of private scholarships.

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

Correction of the declaration:

The single return on income tax and social contributions owed by individuals may be corrected by taxpayers on their own initiative, whenever the current information does not correspond to that in the previously filed return, by submitting an amended return in accordance with the provisions of Law no. 207/2015 on the Tax Procedure Code, as amended and supplemented, hereinafter referred to as the Tax Procedure Code.

The amending return is made on the same form, by ticking with X the box(es) “Amending return on Chapter I” and/or “Amending return on Chapter II”, completing, as appropriate, Chapter I “Data on tax on income earned and social contributions due for the year ….. ” and/or Chapter II “Data on tax on estimated income/income to be earned in Romania and social contributions due for the year ………..”. “.

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

According to ANAF Order 2541, the corrective declaration is used for:

• correction of income tax and social contributions owed by individuals;
• modification of the identification data of the individual;
• modification of some data concerning the category/source of income or its level, according to the law;
• modification of data relating to social insurance contributions and health insurance contributions;
• correction of other information provided in the form.

            The following will be taken into account when rectifying the declaration:

• the initial statement is the statement that has no tick mark for rectification selected;
• only one initial declaration is allowed;
• the amending declaration is the declaration with at least one amending tick selected (in Chapter I or Chapter II or both Chapters);
• an amending return that amends both chapters (Chapter I and Chapter II) must have both amending ticks selected.

Taxpayers can rectify their estimated income tax up to 31 December of the tax year.

An exception is made for taxpayers who are not required to complete Chapter I of the return and who rectify the return in accordance with the Tax Procedure Code.

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

Taxpayers who obtain income from the transfer of the use of personal property, in situations where there are changes in the contractual terms or in the case of termination, during the tax year, of contracts concluded between the parties, for which the determination of gross income is made in accordance with the provisions of Article 120 paragraph (7) of the Tax Code, and where the rent is expressed in lei or represents the equivalent in lei of an amount in foreign currency, submit the statement within 30 days from the date of the event.

How to submit the declaration:

The declaration shall be submitted, together with completed annexes, if applicable, as follows:

1. a) in letter form, directly to the registrar of the tax office or by post, with acknowledgement of receipt.

The return shall be made available to the taxpayer free of charge. The date of submission of the declaration in paper format is the date of its registration at the tax office or the date of submission by post, as appropriate.

1. b) by electronic means of remote transmission, in accordance with the legal provisions in force, namely:

via the “Virtual Private Space” (SPV) service;

on the e-government.ro website, with a qualified electronic signature.

The assistance program is made available to taxpayers free of charge by the subordinate tax units or can be downloaded from the website of the National Tax Administration Agency at www.anaf.ro.

Latest electronic version (PDF inteligent) on the ANAF website:

Legal basis:

-ANAF Order no.2541/2022 approving the model, content, submission and management of form 212 ”Single declaration on income tax and social contributions due by individuals”;

-Tax Code (approved by Law no.227/2015, published in the Official Gazette no.688 of 10.09.2015), with subsequent amendments and additions;

-Fiscal Procedure Code (approved by Law no.207/2015, published in the Official Gazette no.547 of 23.07.2015), as amended and supplemented;

-Methodological Norms for the application of the Tax Code (approved by HG no.1/2016);

-www.anaf.ro .