The Self-Employment Tax Change – PFA that Finance Minister Marcel Bolosh wants for CASS will benefit high earners. Those with incomes below the upper limit will pay 10% of what they earn.

Lawyers, notaries, insolvency practitioners and even video chat earners will benefit.

It remains to be seen if the footballers will too once we see the draft officially accepted.

What does Minister Bolos want:

Let there be two thresholds of 6 and 60 minimum wages, and not 6, 12 and 24 when paying KAS (health care). So if you have 6 to 60 paychecks, you pay unlimited CASS, which is how much you earn. If you have more than 60 salaries (any amount, even more than 1 million lei), you pay 60 salaries (we have some examples below).

Tax advisors with whom HotNews.ro spoke told us that they do not understand why such changes are necessary for independent activities.

• VIDEO Why Romanians and companies will pay higher taxes. Interview with Minister of Finance Marcel Bolosh about the tax measures that have already been adopted and those that are still being discussed

4 examples of calculations regarding Bolosh’s proposal to CASS regarding independent activity

We will give several examples of calculations, but keep in mind that they are made on the current minimum salary of 3,000 lei. Next year will be different, so these are just estimates.

1. Let’s imagine that a person earns 7,500 lei/month (ie 90,000 lei/year). This means that in addition to income tax (10%), he will also pay 10% CASS on the whole amount, i.e. 9000 lei.

2. With an income slightly below 15,000 lei, let’s say it’s 1,491 lei/month (ie a little more than 179,000 lei/year), CASS will be 17,900 lei.

In these two cases, CASS will get what they earn because they are below the minimum wage of 60. You will notice further that this is a fixed amount to which the same principle no longer applies.

3. Someone earns a little more than 15,000 lei per month (over 180,000 lei per year), so he will pay 18,000 lei to CASS.

4. Another person has an income of 24,166 lei/month (290,000 lei/year): CASS also 18,000 lei.

In June, we presented the case of a video chat person with an annual income of over 1 million lei. There are also many cases where they have incomes of more than 300,000 lei per year. Well, CASS for them will be 18,000 lei.

So, the philosophy of the new taxation of self-employment is as follows: for high incomes, taxes are limited. With much lower income, CASS for what you earn.