The advance tax on income from rent

Who is obliged to pay the advance tax upon paying income from rent to an individual – lessor?

Where the payer of income from rent is an enterprise, the advance tax shall be deducted and paid by the enterprise – payer of the said income.

What deadlines must be observed by the enterprise – payer of income from rent, in relation to the deduction and payment of the advance tax for this type of income?

The advance tax on income from rent shall be calculated by the enterprise – income payer, and shall be deducted upon payment of the rent. The deducted tax shall be paid by the end of the month, following the trimester during which the tax has been deducted. No tax shall be deducted and paid in advance for the fourth trimester.

Who is obliged to submit the new return for taxes due – the lessee or the lessor, and what are the deadlines?

The return under Art.55, Para.1 of PITA and Art.201, Para.1 of CITA for taxes due (template 4001) shall be submitted within the deadlines for payment of the advance tax, i.e. by the end of the month, following the trimester during which the tax has been deducted by the lessee, when the lessee is an enterprise

Therefore, the return shall be submitted by the person obliged to pay the advance tax due for the income from rent.

Shall 10% professional expenses be deducted from the rent paid, before the income payer calculates and deducts the advance tax?

Yes. The acquired income shall be reduced by 10% professional expenses, and the 10% tax is calculated and deducted using the difference.

How to pay the tax deducted by the income payer?

The advance tax deducted by the payer shall be paid to the state budget to an account of the territorial directorate of NRA, competent for the place of registration of the income payer.

What document should be issued by the income payer for the deducted tax?

The enterprise – payer of income from rent – shall issue for the income paid and the tax deducted a bill for amounts paid and a official document as per template, and these documents shall be provided to the person who has acquired the income from rent.