Amnesty for the health fund contribution and tax incentives granted

On 23 May 2019 was published an ordinance that brought significant changes for the individuals that obtain all types of income other than salary (rental, income, dividends, interests, etc).

The main changes are:

  • For the tax decisions for 2014 – 2017 issued after the 15th of March 2019, the payment deadline of the health fund contribution is 120 days from the 28th of March 2019.For payment performed within 60 days, a bonification of 10% will be granted.

Considering that individuals did not benefit for certain bonifications since the tax decisions were not issued in due time, the legislator opted to grant a bonification with the extended deadline for issuing the tax decisions.

  • The health fund contribution due by the individuals earning less than the minimum salary for the period 1st of July 2015 – 31st of December 2017 (RON 1,050 in 2015, RON 1,250 in 2016 and RON 1,450 in 2017) has been canceled.

For example, individuals earning in 2017 less than RON 1,450 per month had to pay the health fund contribution to the minimum salary – RON 1,450. Therefore, the health fund contribution due for the year 2017 was RON 957 (5.5%*12*1,450).

Taking into consideration that from the 1st of January 2018, individuals that obtain income less than 12*minimum salary (RON 22,800) are not obliged to pay health fund contribution, the Minister of Public Finance wanted to find a solution to extend this facility also for past periods. This change has continuity for the amnesty applied in the past for the health fund contribution due before the 1st of July 2015 (similar to the current one).

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