Starting 1 July 2012 the National Agency for Fiscal Administration (NAFA) will take over from the National Houses the administration of mandatory social contributions of individuals. This change is
provided by Emergency Ordinance no. 125/2011 amending and supplementing Law no. 571 regarding Fiscal Code.
Starting the same date (July 1, 2012), social contributions payable by individuals shall be paid to the State Treasury units of the tax authorities in the area where taxpayers are taken into
administration.
Please find below a summary of contributions owed by entities who derive income under withholding tax regime and mandatory contributions for entities who derive income not subject to
withholding tax. Please note that this list is not exhaustive and please contact us for any specific cases you might have.
Taxpayers
Persons who derive
incomes under
withholding tax regime
(Art. 52 (1) CF)
Ex. Civil conventions,
agent contracts,
intellectual property
rights
Contributions due

CAS

CASS
Rate
10.5%
5.5%
Calculation basis
Gross income established by
contract between parties, the
difference between gross income
and deductible expenses of 20%
stipulated under art. 50 of Fiscal
Code (for intellectual property rights)
(Art.29622 (4))
It could not be less than the
minimum salary in the economy
Gross income established by
contract between parties, the
difference between gross income
and deductible expenses of 20%
stipulated under art. 50 of Fiscal
Code (for intellectual property rights)
Payment
Prepayments, income
payers are required to
calculate, withhold and
remite the respective
amounts (Art.29624 (5))
Deadline
Until 25th of the month
following the month in
which income was paid,
the month following the
quarter in which income
was paid, respectively
24
(Art.296 (6))
Prepayments, income
payers are required to
calculate, withhold and
remite the respective
amounts (Art.29624 (5))
Until 25th of the month
following the month in
which income was paid,
the month following the
quarter in which income
was paid, respectively
(Art.29624 (6))
Observations
People who are assured of
the pension public system
(eg having individual labour
contract), and those who
receive one of the
categories of pensions
granted in the public
pension system does not
due social insurance
contribution (Art.29621 (2))
It could not exceed the equivalent of
5 times the average gross salary in
22
the economy (Art.296 (5))

Income tax
10%
Gross income less withheld
mandatory social contributions (Art.
52 (2))
Withholding
representing
prepayments (Art. 52
(1))
Until the 25th of the month
following the month in
which income was paid
(Art. 52 (3))
Income beneficiary will
submit the realized income
statement (Statement 200)
to which adjustment of tax
payable will be done using
16% rate (Art. 83)
16%
Gross income without deducting
mandatory social contributions
You can choose to
establish income tax as
final tax (Art. 521 (1))
th
Until the 25 of the month
following the month in
which the tax was
Income tax is calculated by
withholding tax at payment
of income by income payers
Taxpayers
Individual companies,
PFA performing
economic activities,
liberal professions,
income from
intellectual property
rights, for which
income tax is
determined based on
data from single entry
accounting (Art.29621
(1) a) –e))
retained (Art. 521 (4))
(Art. 521 (2))
Contributions due

CAS
Rate
31.3%
Calculation basis
Income declared according to
declaration of insurance, which
cannot be lower than 35% of gross
average salary in the economy and
no higher than the equivalent of 5
22
times this salary (Art.296 (1))
Payment
Monthly payment
obligations based on
declared income
(Art.29624 (1))
Deadline
Payment is made
quarterly in four equal
instalments until the 25th
of last month of each
quarter (Art.29624 (3))
Observations
Persons insured of the
public pension system (eg
having individual labour
contract), and those who
receive one of the
categories of pensions
granted in the public
pension system does not
due social insurance
21
contributions (Art.296 (2))

CASS
5.5%
The difference between total
revenues collected and expenses
incurred in order to achieve these
revenues, excluding the expenses
representing mandatory social
contributions. The basis could not be
lower than the minimum base salary
in the economy (Art.29622 (2))
Prepayments based on
tax decision, based on
estimated income
statement / statement of
realized income
(Art.29624 (2))
Payment is made
quarterly in four equal
th
instalments until the 25
of last month of each
24
quarter (Art.296 (4))
Establishing the annual
payment obligations to
health insurance
contribution is made
through annual tax decision,
based on which the
amounts payable as
prepayment are settled
(Art.29625 (4))

Income tax
16%
Estimated net income determined as
the difference between gross
income and deductible expenses to
achieve the incomes, according to
the Fiscal Code, made by individual
freelancers whose incomes are
determined based on the single
entry accounting
(Art. 48, Art.50)
Prepayments based on
estimated income
statement
(Art.82 (1) – (2))
By the 25th of last month
of each quarter (Art.82
(3))
Differences remaining to be
paid, calculated based on
the final annual tax
decision, shall be paid no
later than 60 days from the
communication of tax
decision
(Art. 84 (8))
For additional information, please contact:
Eduard Pavel
BG CONTA Partner
E‐mail: [email protected]