This is a joke circulating on Romanian social media: “Can you recommend a good suspenseful movie without knowing what’s going to happen tonight? Answer: Romania’s tax system.” It’s funny because it is. It has changed so many times in recent years that in 2024 we chose new taxes in addition to raising some of the existing ones.
As for the health insurance contribution (CASS), the situation has been further complicated by the Law on the Increase of Taxes and the Introduction of New Taxes (Law 296/2023).
So it turned out that for this year’s income (2024) some Romanians have to pay 2-3 CASS in 2025, in addition to the vacation tax (or sickness tax, as it is also called in the press). ).
In effect, through Act 296, they further shared the revenue to pay CASS.
Let’s say a person earns a salary, also has a PFA (where he also earns some income from hobbies: he can fix cars, is a fitness instructor, makes small jewelry, etc.) and owns shares in the stock market (or a partner in a company), banking deposits or rents that bring him income:
1. As an employee, he pays CASS
2. as a PFA if he exceeds 6 salaries he will pay CASS depending on how much he earns (from 2025 to 2024 income) up to a maximum of 60 salaries
3. Dividends will be paid separately in the amount of 6, 12 or 24 salaries.
Basically pays 3 times separately.
Until now, a person has paid a maximum of 2 times: for example, as an employee, and if he had other types of income, then all the latter were accumulated in the Unified Declaration. In essence, the Government has distributed the types of income in such a way that some people who have slightly higher expenses or losses cannot reduce their payments to the Government.
Although Romanians pay more money to CASS, the health services remain the same. As tax consultant Cornel Grama also says, “In my opinion, twice is too much and it’s not justified because you’re still getting those services… not even those… that you bring medicine from home just in case hospitalization. “.
See also:
PFA, PFI or Freelancers changes from 2024: Income or not, pay CASS / Also have dividend income? Then you pay for them separately
Photo source: Dreamstime.com
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.