Income from intellectual property rights (2)

 Fiscal treatment of income from intellectual property rights received from other payers than those mentioned above:

The net income from intellectual property rights, including the creation of monumental works of art, received from payers other than legal entities or other entities that have the obligation to keep accounting records, is established by taxpayers by deducting from gross income the expenses determined by applying the 40% quota on gross income.

In the case of the exploitation by the heirs of the intellectual property rights, as well as in the case of the remuneration representing the resale right and the compensatory remuneration for the private copy, the net income is determined by deducting from the gross income the amounts belonging to collective management bodies or other payers. such income, according to the law, without the application of the flat rate of expenses of 40% on the gross income.

In order to determine the net income from intellectual property rights, the taxpayers can complete only the part referring to the incomes from the Register of fiscal evidence.

Establishing the annual net income in real system based on accounting data – option:

Taxpayers who obtain income from intellectual property rights have the right to opt for the determination of net income in the real system. We mention that the option is mandatory for the taxpayer for a period of 2 consecutive fiscal years and is considered renewed for a new period if the taxpayer does not request a return to the previous system, by properly completing the single declaration on income tax and social contributions due by individuals and submission of the form to the competent fiscal authority until May 25, including the year following the expiration of the 2-year period.

The option for determining the net income in real system is exercised by completing the single declaration, with information on determining the annual net income in real system and submitting the form to the competent tax authority until May 25, inclusive, in the case of taxpayers who worked in previously, respectively within 30 days from the beginning of the activity, in the case of taxpayers who start the activity during the fiscal year.

The declaratory obligations and the tax rules are those established for the annual net income from independent activities determined in the real system.

It is important to mention the fact that, according to the Fiscal Code, the natural persons who realize incomes from intellectual property rights, imposed in the real system, have the obligation to declare both the estimated income and the realized income. In the case of income of this nature, taxpayers have the obligation to estimate the obligations due in the taxation year, by completing Chapter II of the single declaration on income tax and social contributions, and finalizing these obligations in the year following the taxation, by completing Chapter I from the same statement ..

The annual taxable net income is calculated by the taxpayer, at the level of all sources from independent activities and intellectual property rights, determined in the real system.

Revenues that are realized in a fraction of a year or in different periods that represent fractions of the same year, are considered annual income.

In the case of income from intellectual property rights, for which the annual net income is determined in real system, based on accounting data, when determining the annual taxable net income, the taxpayer establishes:

  1. a) the recalculated annual net income / the recalculated net loss on each source from the provided income categories, by deducting from the annual net income, determined in real system, the tax losses carried forward;
  2. b) the net annual taxable income which is determined by summing up all the annual net income, recalculated, provided in letter a), from which is deducted the social insurance contribution due according to the provisions of Title V – Compulsory social contributions from the Fiscal Code.

The annual fiscal loss registered on each source of intellectual property rights determined in the real system, is carried forward and compensated by the taxpayer with incomes obtained from the same source of income from the next 7 consecutive fiscal years.

The losses from this category of incomes coming from abroad are carried forward and compensated by the taxpayer with the incomes of the same nature and source, realized abroad, on each country, registered in the next 7 consecutive fiscal years.

Completion and Submission of the single declaration regarding the income tax and social contributions due by individuals (real system):

Taxpayers who realize, individually or in a form of association, income / loss from intellectual property rights determined in real system, have the obligation to submit the Single Declaration on income tax and social contributions to the competent fiscal authority, for each fiscal year, until May 25, including the year following the year of the income in order to finalize the annual income tax. The single declaration regarding the income tax and the social contributions due by the natural persons is completed for each source within each income category. For income realized in a form of association, the declared income will be the net income / loss distributed from the association.

Taxpayers who realize, individually or in a form of association, income / loss from intellectual property rights, have the obligation to submit the Single Declaration on income tax and social contributions due by individuals – “Chapter II. Data regarding the estimated income tax / income norm to be made in Romania and the social contributions due ”, for the estimated income to be made in each fiscal year, regardless of whether in the previous fiscal year they registered losses, until May 25 inclusive every year. Taxpayers who start an activity during the fiscal year are obliged to submit the Single Declaration regarding the income tax and the social contributions due by the natural persons – “Chapter II.

Data regarding the estimated income tax / income norm to be made in Romania and the social contributions due ”within 30 days from the date of the event. Individuals with severe or severe disabilities exempted from paying income tax on intellectual property rights have the obligation to submit the single declaration on income tax and social contributions.

The Single Declaration on income tax and social contributions due by individuals for income from intellectual property rights, the taxation of which is final, is not submitted.

The annual tax due is established by the taxpayers in the Single Declaration regarding the income tax and social contributions due by individuals for the incomes realized in the previous fiscal year, by applying the 10% quota on the net annual taxable income from which the acquisition cost of the devices is deducted. marked fiscal electronics put into operation in that year.

The term for paying the tax is until May 25, inclusive, of the year following the year of the realization of the incomes.

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

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

– through the “Virtual Private Space” (SPV) service;

– on the website www.e-guvernare.ro, with a qualified electronic signature.

To submit the single declaration through the portal www.e-guvernare.ro, taxpayers must have a qualified digital certificate.

The assistance program is made available to taxpayers free of charge by the subordinated fiscal units or can be downloaded from the website of the National Agency for Fiscal Administration, at www.anaf.ro.

  1. in paper format, directly at the registry of the fiscal authority or by mail, by registered letter, with acknowledgment of receipt.

The competent fiscal authority for receiving the single declaration is:

  1. a) the central fiscal authority in whose territorial area the taxpayer has the address where he has his domicile, according to the law, or the address where he actually resides, in case it is different from the domicile, for the natural persons who have the fiscal domicile in Romania;
  2. b) the competent central fiscal authority, according to the law, for the administration of natural persons taxpayers, without fiscal domicile in Romania.

The single declaration on income tax and social contributions due by individuals who obtain income from intellectual property rights can be corrected by taxpayers on their own initiative, whenever the current information does not correspond to those in the previously submitted declaration, by submitting a corrective statement in the conditions provided by Law no. 207/2015 on the Fiscal Procedure Code, with subsequent amendments and completions.

The amending declaration is drawn up on the same form, ticking with X the box / boxes “Amending declaration regarding chapter I” and / or “Amending declaration regarding chapter II”, completing, as the case may be, chapter I “Data on income tax realized and the social contributions due for the year ….. “and / or chapter II” Data regarding 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 declaration. Revenues not included in the initial declaration are declared by submitting a rectifying declaration.

The rectifying declaration 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 incomes or their level, according to the law;

– modification of some data regarding the social insurance contribution and the social health insurance contribution;

– correction of other information provided by the form.

Legal basis:

www.anaf.ro;

Law no. 227/2015 on the Fiscal Code, with subsequent amendments and completions;

Law no. 207/2015 on the Fiscal Procedure Code, with subsequent amendments and completions; Calendar of tax obligations.