The Romanian government recently published an emergency ordinance through which the health insurance contribution (CASS) due by taxpayers who earned less than the minimum wage during any of the years 2015-2017 was canceled.

The waiver of debt applies only to non-employment income. Thus, individuals who generated such types of income (e.g. dividends, rental income, capital gains, etc.), which during a fiscal year (calendar year) were below the minimum national gross salary, will be exempt from the payment of this contribution. The same exemption is also applied to those who have earned annual income below the level of 12 gross minimum wages.

What are the details set forth by the Emergency Ordinance no. 31/2019?

More exactly, the Ordinance that entered into force as of 23 May 2019 establishes that the health insurance obligation (CASS) is canceled  for the period 2015-2017, which means is no longer due by individuals (natural persons) for whom the contribution should have been calculated at the level of a gross minimum national salary.

The types of income that fall under this exemption are: interest, dividends, income from the transfer of securities (capital gain), rental income, etc.

The same Ordinance stipulates that, if the Romanian tax office (ANAF) decisions have already been issued for such cases, they will be canceled automatically by the authorities. This amnesty applies automatically, the authorities say. Meaning that the individual taxpayers do not need to do anything to benefit of the debt waiver.

Thus, the Romanian tax office (ANAF) will issue and communicate to the individuals concerned tax decisions to cancel the health insurance obligation for individuals that generated incomes below the minimum wage between 1 July 2015 and 31 December 2017. Also, decisions issued and not notified to taxpayers by the date of publication of the Ordinance will be automatically canceled by ANAF.

Also, the Ministry of Finance is to issue an Order that will regulate the procedure for the application of this amnesty. The Order will also include the applicable rules for the refund of contributions already paid by a part of the taxpayers.

Health insurance obligation cancellation for 2015-2017 does not apply to individuals who have already paid this contribution on voluntary basis.

Values of the Romanian minimum national gross salary for years 2015 – 2017 were as follows:

  • 2015: 975 lei between January – June, and 1,050 lei between July – December
  • 2016: 1,050 lei between January – April, and 1,250 lei between May – December
  • 2017: 1,250 lei in January, and 1,450 lei between February – December

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Tax & Legal consultant since 2005.

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