In the case of a lawyer carrying out independent activity as a sole practitioner (PFA) and contributing to the profession’s own social insurance system, the tax treatment of social contributions must be analyzed separately for the two components: CAS (pension contribution) and CASS (health insurance).
- CAS treatment – Bar Association pension system
The contribution paid to the Bar Association Pension Fund represents a mandatory professional contribution related to the exercise of the legal profession. According to Law no. 227/2015 on the Fiscal Code, art. 68 para. (4) letter i), these amounts are fully deductible expenses, insofar as they are incurred for the purpose of carrying out independent activity.
The immediate impact on profitability is the reduction of the taxable base for income tax by decreasing net income with the CAS paid to the professional system.
- Determination of the CASS base
For health insurance contribution (CASS), the relevant legal framework is art. 170 and art. 174 of Law no. 227/2015 (Fiscal Code).
CASS is calculated by applying a 10% rate to the annual calculation base, represented by the annual net income from independent activities determined under art. 68.
Key element: the calculation base is the net fiscal income, not gross income.
- CAS – CASS correlation for lawyers
Annual net income is determined as follows:
Gross income
– deductible expenses (including CAS paid to the Bar Association Pension Fund)
= annual net income
Then:
CASS = 10% × annual net income
- Capping rules
The annual CASS base is capped at 60 gross minimum wages per year, according to art. 170 para. (1), without taking into account carried-forward tax losses.
- Combined fiscal effect
Including CAS as a deductible expense reduces net income, which indirectly leads to a lower CASS base. However, CASS remains strictly proportional to the net income resulting after deducting all legally accepted expenses.
No additional adjustment is applied to the CASS base for already deductible professional contributions; only the standard mechanism of net income determination under real accounting applies.