Budget revenues from the payment of income tax by individuals renting out real estate in January-July 2023 increased by 39% - up to 30.48 million lei relative to the same period of 2022.
State Tax Service (STS) reported this, noting that in 7 months of last year this indicator amounted to 21 million 934.4 thousand lei, while in January-July this year - 30 million 483.1 thousand lei. The STS emphasizes that as a result of actions of voluntary compliance and informing, 1475 individuals renting/using immovable property were detected during 7 months of 2023. For 271 individuals who rented out real estate and did not comply with the legislation, the following payments to the budget were additionally charged: basic payments - 639.8 thousand lei, penalties for late payments - 49.9 thousand lei and fines - 23.9 thousand lei. In January-July 2023, a total of 13303 contracts for leasing real estate to other individuals were registered with the STS, which is 24.8% more than in the same period a year earlier (10663). The STS reminds that in accordance with the Tax Code, individuals who are not engaged in entrepreneurial activity and are renting out real estate to other individuals for possession and/or use (property rent, lease, usufruct), pay tax at the rate of 7% of the monthly value of the contract. These persons are obliged to register the contract with the State Tax Service within 7 days from the date of its conclusion. This tax is paid monthly, not later than the 25th of the current month, in accordance with the procedure established by the State Tax Service. Citizens who do not fulfill these obligations are fined in accordance with the Tax Code. Also, the STS reminds individuals who are not engaged in entrepreneurial activity and who transfer real estate into possession and/or use to other individuals using Booking, Airbnb and other platforms, of the need to fulfill the tax liabilties related to the income received. // 11.08.2023 - InfoMarket.
