In addition to the dividend tax on profit distributions, as an entrepreneur you must pay a compulsory contribution to the Romanian social security system.

The CASS contribution (Romanian: Contribuţia de asigurări sociale de sănătate) is a compulsory contribution that you must pay into the social health insurance system.

This is intended to ensure that freelancers and the self-employed also pay into the social security system.

The calculation is quite simple and is based on the income you have earned from your business. Normally, this is the sum of the dividends distributed. 

The following figures apply for taxation in the 2023 financial year:

• under LEI 18,000 (approx. EUR 3,600) no payment is required
• from LEI 18,000 (approx. EUR 3,600), a lump sum of LEI 1,800 (approx. EUR 360) is due
• from LEI 36,000 (approx. EUR 7,200) a lump sum of LEI 3,600 (approx. EUR 720) is due
• from LEI 72,000 (approx. EUR 14,400), a lump sum of LEI 7,200 (approx. EUR 1,440) is due; irrespective of the actual amount of dividends distributed

We will be happy to advise you on this.