According to the Tax Code, the incomes earned from leasing agricultural goods from the personal patrimony are classified as incomes from lease of goods. According to the Civil Code, the lease represents the rental of agricultural goods.
The following agricultural goods can be leased:
a) agricultural lands, namely fertile agricultural lands - arable lands, vineyards, orchards, vine nurseries, fruit growing, fruit shrubs, hop and mulberry gardens, wooded pastures, lands with buildings and agricultural and zootechnical installations on them, fishing and land improvement facilities, technological roads, platforms and storage facilities, which meet the needs of agricultural production and the infertile lands that can be landscaped and used for the agricultural production;
b) animals, all sorts of buildings, machinery, equipment and other such goods intended for agricultural use.
IMPORTANT!!! The lease agreement must be concluded in writing, under the absolute nullity sanction.
The registration of the lease agreement:
the lessee must submit a copy of the agreement to the local council within the territorial radius where the leased agricultural goods are located, in order to be registered in a special registry book kept by the secretary of the local council. When the leased goods are located within the territorial radius of several local councils, one copy of the agreement is submitted to each local council within the territorial radius where the leased goods are located;
the lessor is bound to register the agreement concluded between parties, as well as the further amendments, within 30 days from its conclusion/entering into force of the amendment, to the competent fiscal body, respectively to the fiscal body within the territorial radius where s/he resides.
The net income from lease is established at each payment by deducting from the gross income the expenses determined by applying the 40% rate to the gross income.
The deductible expense related to the income, established at 40% flat rate applied to the gross income, represents the wear of the rented goods and the expenses incurred by their maintenance and repair, the property taxes and fees owed according to law, the commission withheld by intermediaries, the insurance premiums paid for the leased good, respectively possible incomes expected but unearned from lease, generated by the unfavourable climatic conditions, such as: hail, drought, floods, fire, etc.
The tax on incomes from lease are calculated at each payment of the lease by applying the 16% rate on the net income. The tax thus calculated is withheld and paid to the state budget until the 25th, included, of the month following that in which it was withheld.
The tax related to the incomes from lease, calculated, withheld and paid by the lessee is the final tax.
The social health insurance contribution is determined by applying the 5.5% rate to the calculation base. The monthly calculation base of the health insurance contribution for the natural persons who earn incomes from leasing agricultural goods in tax withholding regime is the difference between the gross income and the deductible expense determined by applying the 40% rate to the gross income and cannot be higher than 5 times the average gross salary income used for the substantiation of the social insurance state budget and approved by the law of the social insurance state budget.
The calculation base of the social health insurance contribution is monthly highlighted in the taxation decision. The monthly calculation base thus highlighted cannot be smaller than a national minimum gross salary, if the income for which the contribution is calculated is the only one earned.
The payment of the social health insurance contribution established through the annual taxation decision is made within maximum 60 days from the notification date of the decision, and the amounts paid extra will be compensated or reimbursed pursuant to the provisions of the Tax Procedure Code.
The lessees are bound to fill in and to submit until the 25th, included, of the month following that in which the incomes were paid, form 112 - "The statement regarding the obligations of paying the social contributions, the income tax and the nominal record of the insured persons" in which they declare the tax on incomes from lease and the individual social health insurance contributions calculated and withheld, as well as the nominal record of the insured persons.
The statement is submitted by electronic means of remote transmission, pursuant to law. In order to submit the statement, the lessee must have a qualified certificate issued according to Law no. 455/2001 on electronic signature.
