According to the latest changes brought by Ordinance 115/2023, from 01.01.2024 the legal entity tenant will pay the tax on rental income to the state and will deduct it from the rent due to the landlord. Below is an extract from the Tax Code with the change in rental income.
The calculation will be:
[(rent + other expenses payable by the landlord if paid by the company) – 20% flat rate expenses)]* 10% tax.
The tax is withheld, declared and paid to the state but we do not have any rules yet.
We will keep you informed as clarifications emerge.
Law 227/2015 – CHAPTER IV – Income from the transfer of the use of goods
ART. 841 – Rules for determining the tax on income from the transfer of the use of goods, other than income from the letting of agricultural goods and from the letting for tourism purposes of rooms situated in personally owned dwellings, paid by legal persons or other entities required to keep accounts
(1) In the case of income from the letting of goods, other than income from the letting of agricultural goods and from the letting of rooms in private dwellings for the purpose of tourism, paid by legal persons or other entities required to keep accounts, the gross income shall be the total of the sums in money and/or the equivalent in lei of the income in kind established in accordance with the contract concluded between the parties. The gross income shall be increased by the amount of the expenses which, according to the legal provisions, are chargeable to the owner, usufructuary or other legal holder, if they are incurred by the other contracting party.
(2) Where the rent represents the equivalent in lei of a currency, the gross income shall be determined on the basis of the exchange rate communicated by the National Bank of Romania on the day preceding that on which the payment is made.
(3) The net income from the letting of goods, other than income from the letting of agricultural goods and from the letting for tourism purposes of rooms in privately-owned dwellings, shall be determined at each payment by the persons paying the income, whether legal persons or other entities required to keep accounts, by deducting from the gross income the expenses determined by applying a rate of 20% thereto.
(4) Payers of income, legal persons or other entities that are required to keep accounting records are also required to calculate, withhold, declare and pay the tax corresponding to the amounts paid.
(5) The tax shall be calculated by applying the rate of 10% to the net income and shall be withheld at source by the income payers referred to in paragraph 1. (4) at the time of payment of the income.
(6) The tax calculated and withheld is final tax and shall be paid to the state budget on or before the 25th day of the month following the month in which it was withheld.
(7) Taxpayers are not obliged to complete the Tax Register and to keep the accounting records.