Fiscal facilities regarding health insurance (CASS)

In the Official Gazette of Romania, Part I, no. 403 dated May 23, 2019, Government Emergency Ordinance no.31 / 2019 regarding the granting of tax facilities and amending and completing the Law no. 227 / 2015 on the Fiscal Code, to supplement the Government Emergency Ordinance no. 11/2018 for adopting some budgetary measures and amending the Framework Law no. 153/2017 on the remuneration of staff paid from public funds.

This normative act also approved the extension of the payment period for the social health insurance contribution (CASS) due by natural persons (individuals) (from other activities than wages) for the period 2014-2017, with 120 days from the date of entry in force this Ordinance, i.e. until September 19, 2019.

Previously, this deadline was June 30, 2019.

It is important to note that the extension of the payment term is valid for tax decisions issued and communicated by the tax authority between 15 March 2019 and 23 May 2019 (date of entry into force of Emergency Ordinance (OUG) 31/2019).

If the health insurance contribution (CASS) amounts due by individuals for which tax decisions were issued for the 2014-2017 period are paid within 60 days of the date of entry into force of the Emergency Ordinance 31/2019, July 21, 2019, bonuses of 10% of the amount due shall be granted.

For health insurance contribution (CASS) decisions for 2014-2017 issued after May 23, 2019 (the date of entry into force of this Emergency Ordinance), the payment deadline is 120 days from the date of the communication of the decision.

For payment within 60 days of the notification of the tax decision, a 10% bonus is granted.

Also, by the mentioned Emergency Ordinance, the annual health insurance contribution (CASS) payment obligation due by individuals during the period 01 July 2015 – 31 December 2017 was approved, if the cumulative annual incomes (eg investment income) made by these persons were lower than the guaranteed minimum wage corresponding to one year.

According to the legal provisions of that period, individuals who were not insured in the public health system and made any occasional income (eg Investments, real estate sales etc) owed a health insurance contribution (CASS) to the country’s minimum wage.

Thus, there were situations where an insignificant income made by an individual in that period would generate a much higher health insurance contribution (CASS).

By Emergency Ordinance (OUG) no.31/2019, was approved the cancellation of the mentioned tax decision, even if the tax decision had already been issued

In addition, people who have already paid health insurance contribution (CASS) have the right to claim restitution or compensation with other taxes.

If the tax decision was not issued, it will not be issued anymore.