This year, interest was accrued and collected on last year’s deposits, some of them 7-8%. As new health care contribution limits (CASS) have been introduced, many will have to file a single return and pay.

*Income tax is still withheld at source

In general, we are talking about people who have deposits of more than 53 thousand euros.

*The fact that you have to pay CASS on deposits isn’t new, it’s a new threshold that increases the base of people who have to pay, i.e. those with lower incomes. We describe in detail below.

Why

Last year, a decree was passed (OG 16/2022) which introduces a new threshold of 6 minimum wages at which CASS must be paid.

What minimum wage do you report?

This year we have two minimum salaries, 3000 lei and 3300 lei. According to the official ANAF information, when calculating the thresholds (ceilings), you will have to take into account a salary of 3000 for the 2023 contribution.

Therefore, if this year your deposit income exceeds 18,000 lei (but up to 36,000 lei), do not spend all the money. You will have to pay until May 25, 2024: 1,800 lei. The first time you submit a single declaration, and then you pay.

Of course, if you exceed 36,000 lei, but have up to 72,000 lei, it is approximately 3,600 lei.

If you had more than 72,000 lei, 7,200 lei must be paid to the state.

Many people continue to believe that if they receive a salary and automatically pay KAS (exceptions are construction workers, agriculture and the food industry), then they no longer need to submit a tax return for this. Well, that theory is wrong.

According to the Fiscal Code, CASS must be paid according to the thresholds: 6, 12 or 24 salaries.

The problem is that in Romania not all incomes are accumulated (that is, we do not have their globalization).

For more information, see: Do I still have to pay CASS if I’m an employee but have other income?

If you turned to government bonds, they are not taxed in any way: no income tax, no CASS. This may also be the reason why they have become very attractive to many Romanians, if we look at the official data from the Ministry of Finance.

Does the new Tax Act change anything about income from interest, dividends, rents, etc.?

There is no news about ceilings in the new tax law of the Cholak government (L296/2023). Therefore, the same marginal amounts of 6, 12 and 24 minimum wages are taken into account for these incomes.

Of course, you will pay for the 2024 income in 2025. So in 2024 you will have to report up to the minimum wage. It is not yet known how long it will be.

However, if you are also self-employed, for example you work through a PFA, here is a change in respect of separate interest, rent, dividend income in relation to CASS.

For example, if you have income from PFA activities, you pay CASS 10% of the net value between 6 and 60 minimum wages. For earnings above 60 wages, you remain at this maximum level.

At the same time, if you also have income from dividends, rent, etc., you pay for them separately in the amount of 6, 12 and 24 minimum wages. That is, not all income is collected in one place. There is no globalization.

So you will pay from 6-60 for PFA activity and 6-12-24 separately for other mentioned income.

This is one of the novelties of the Law on New Taxes.

Read more: Changes to PFA, PFI or Freelancers from 2024: Do you have income or not, do you pay CASS / Do you also have dividend income? Then you pay for them separately

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