Getuta is a singer and shes chosen to pay income tax by using the real system. During 2020 she reported the following revenues:

1. Revenues received from services supplied to clients 300,000 lei.

2. Revenues from selling merchandise (TShirts, CD-s) 10,000 lei

Expenses: 1. Miscellaneous expenses 80,000 lei

2. Rent for the Studio 60,000 lei from which only 50,000 lei paid during 2020

3. Equipment bought in June 2020 30,000 lei (useful life 5 years; straight line depreciation)

4. Protocol expense 6,000

5. Sponsorship expense 2,000

6. Food bought for personal use 5,000

7 Income tax paid for the previous year 3,000

The income she chose to pay social contributions (CAS) to is 3,000 lei per month, BUT only if shes required to pay such contributions.

1. Compute net taxable income, before considering social contributions

2. Decide if Getuta owes social contributions for the independent activity and if yes, state and compute the social contributions she must pay and the computation base for each of them. Show your computation as an argument for your answer.

3. Compute income tax.

4. Getuta heard that there is another system she could used to pay income tax (the norm based one). Briefly explain whats this system about and when would it be better for her to opt for this system.