Compensation received during the state of emergency

In addition to any other independent income obtained last year, authorized individuals, those who obtain income from copyright, lawyers and other professionals must pay this year, thr OUG (Emergency Ordinance) h the single declaration, tax and contributions for financial aid given by the state during the state alert and emergency last year (pandemic benefits).

We have, once, a monthly allowance for the temporary suspension of the activity, amounting to 75% of the Emergency Ordinance) no. 30/2020 (in a state of emergency).

And the second monthly allowance for the reduction of working time determined by the state of alert / emergency, amounting to 41.5% of the average gross earnings for 2020, granted according to  OUG (Emergency Ordinance)  no. 132/2020.

We specify that the amounts were granted by the state as gross values, reason for which now the tax of 10% and the Social security contribution (CAS) of 25% must be paid to the state, as well as the Social health insurance contribution (CASS) of 10% (each is calculated as a percentage of the gross value received from the state).

In this topic we will analyze the monthly allowance for the temporary suspension of the activity, in the share of 75% of the average gross salary for 2020, received according to art. XV paragraphs (1), (11) and (4) of  OUG (Emergency Ordinance)  no. 30/2020, with subsequent amendments and completions:

Beneficiaries (who declare the allowance in the single declaration):

  1. Professionals (all those who operate an enterprise, respectively who systematically carry out an organized activity consisting in the production, administration or alienation of goods or the provision of services, whether or not for profit) – for example PFA, Individual enterprise, persons who are self-employed – who have stopped working as a result of the effects of the SARS-CoV-2 coronavirus during the state of emergency *
  2. Lawyers whose activity has been reduced as a result of the effects of the SARS-CoV-2 coronavirus, during the state of emergency *, if in the month for which they requested the indemnity they made receipts (they made incomes from the exercise of the profession) by at least 25% lower than the monthly average for 2019, but which do not exceed the average gross earnings provided by the Law on the state social insurance budget for 2020
  3. Individuals who obtain income exclusively from copyright and related rights, as regulated by Law no.8/1996 on copyright and related rights, republished, with subsequent amendments and completions, which interrupt the activity as a result of the effects of SARS-CoV-2 coronavirus, during the state of emergency *

* the provisions regarding the granting of this allowance apply until June 30, 2021, for all fields of activity in which restrictions are maintained, provided by Law no. 55/2020 which establishes measures during the alert state.

Tax treatment of the allowance:

Beneficiaries owe:

Obligation How it is calculated
Income tax 10% x (gross value of the allowance  –

CAS – CASS)

Social security contribution (CAS) 25% x gross value of the allowance
Social health insurance contribution (CASS): 10% x gross value of the allowance

The declaration of the indemnity is made thr OUG (Emergency Ordinance) h the Single Declaration (form 212 approved by ANAF (National Tax Authorities) Order no. 14/2021).

We remind you that the ANAF (National Tax Authorities) Order 14/2021 for the approval of the model, content, method of submission and management of form 212 “Single declaration on income tax and social contributions due by individuals” was published in the Official Gazette no. 33 of dated January 12, 2021.

Separately from the incomes obtained as a professional (PFA (Self-employed person), II, IF / Lawyer / From intellectual property rights), the calculation of the income tax and of the obligatory social contributions is performed separately from the incomes realized from the development of the activity.