Income from leasing agricultural assets from personal property is considered taxable income under the category of property use transfer.
Income and Tax Calculation
- Gross income: defined by the lease contract; includes both money and in-kind payments.
- Net income: gross income minus 20% standard deductible expenses.
- Income tax: 10% of the net income, withheld at source by the lessee.
- The tax is final – the landowner has no further tax filing obligations.
Declarations and Responsibilities
- The lessee must file Form D112 by the 25th of the month following the payment.
- The landowner is not required to keep tax or accounting records.
Health Insurance Contribution (CASS)
- Due if net annual income exceeds 6 national minimum wages, calculated as follows:
- 6 minimum wages – if income is between 6 and 12.
- 12 minimum wages – if income is between 12 and 24.
- 24 minimum wages – if income exceeds 24.
- Contribution rate: 10% of the applicable threshold, not of net income.
Special Cases
- If income comes from multiple lessees, one must be designated in the contract for CASS calculation and payment.
- If no lessee retains CASS, the landowner must file the Single Statement (Form 212) by May 25 of the following year.
Additional Obligations
- The lease contract must be submitted to the local council where the land is located.
- If the land spans multiple jurisdictions, the contract is submitted to each local authority.
- Contracts should state both gross and net values for transparency.