Authorized natural persons (PFAs) are subject to changes regarding taxation after the entry into force of the new provisions amending the Fiscal Code (OG 16/2022, as amended by Law 370/2022). There are new limits that will apply starting with 2023 income, but you’ll pay them in 2024. However, you will use them in 2023 when you fill in the assessment part of the EDD.

So, if you are a PFA or want to become one, you need to consider the following things.

What has changed in the PFA starting with the 2023 income

First, those who were on the income norm should know that the ceiling has changed. It is no longer 100,000 euros, but 25,000 euros. So if you exceed €25,000 this year, from 2024 you switch to the real system.

The income ceilings for CAS and CASS payments have also changed, plus obligations have only appeared on a voluntary basis. For example, if until now it was optional to pay to CASS, if you had 6 to 12 minimum wages, now it is mandatory.

Therefore, what we write below is a mandatory part, but we give them as an example, regarding the current minimum wage, because in 2024 we do not know what it will be.

IMPORTANTLY: You will use them when filling out the estimate for the Unified Declaration 2023 (it will also appear on the ANAF website these days, now only in the Official Monitor).

Also depending on this, see if it is more profitable to go micro-enterprise, even if the legislation has changed on this side as well. In many cases, in the simulations we ran on various computers that appeared on the Internet, you pay less to the government if you operate as a micro-enterprise, but consider that it will also cost you an accountant (you will need one).

So, on the current minimum wage, the new limits look like this:

• If your income is between 18,000 and 36,000 lei, then CAS is zero (it is optional), but you must pay CASS 1,800 lei.

• If your income is between 36,000 and 72,000 lei, the CAS is 9,000 lei and the CASS is 3,600 lei.

• If your income exceeds 72,000 lei, the CAS is 18,000 lei and the CASS is 7,200 lei

(Obviously, below 6 minimum wages, only income tax is payable).

Income tax has remained unchanged: 10% (nothing has changed here – this is if the legislation does not change in 2023 with application from 2024).

The Unified Declaration must be submitted by May 25

As I said above, the new changes take effect from this year’s income, so they will be paid out in 2024. However, if you were a PFA in 2022, you must file a single return by 25 May 2023.

The amount you will pay in 2023 for the previous year is based on the current maximum of 12 minimum wages (contributions).

However, considering that the minimum wage was increased to 3,000 lei gross, the value is 36,000 lei. Depending on this, you need to pay contributions.

IMPORTANTLY: Take into account the new restrictions when you fill in the assessments in the Unified Declaration, i.e. the figures mentioned above. If you will make a PFA in 2023, do not forget that the single declaration with assessments must be submitted within 30 days.

Many people work for PFA, such as some accountants, personal trainers, fitness instructors, social media earners, some IT professionals, etc.

Read also:

Do you have rental income? What to do and know in 2023

All the measures that come into effect from January 1 and affect your personal finances in 2023

Photo source: Dreamstime.com