Case:
A company administrator received RON 200,000 in dividend income in 2024. He is also an employee, and through the Single Tax Return filed on May 25, 2024, he estimated health insurance contribution (CASS) for 2025 at the level of 24 gross minimum wages. What social contributions must be declared and paid by May 25, 2025?
Solution:
- Income tax on dividends
For dividend income subject to withholding tax, no income tax is declared in the Single Tax Return. The payer of the dividend is responsible for:
- calculating,
- withholding,
- declaring, and
- paying the tax.
- Health Insurance Contribution (CASS)
According to Article 170 of the Romanian Fiscal Code, individuals who earn income from sources listed in Art. 155(1)(c)-(h) (including dividends) owe CASS if total annual income exceeds the threshold of 6 gross minimum wages.
In this case:
- Total income: RON 200,000
- Gross minimum wage as of May 25, 2024: RON 3,300
- Maximum threshold (24 minimum wages): 24 x RON 3,300 = RON 79,200
Therefore, the CASS is calculated only up to RON 79,200, not the full income amount.
CASS owed = 10% x RON 79,200 = RON 7,920
Filling in the Single Tax Return (Form 212 – deadline: May 25, 2025):
Section I.3 – Data on Social Contributions Owed
- Subsection I.3.2 – Health Insurance Contribution (CASS)
- Subsection I.3.2.2 – CASS for income from:
- investments (including dividends),
- intellectual property rights,
- lease income,
- agricultural activities, etc.
To be filled as follows:
- Check: I earned income equal to or above 24 gross minimum wages
- 1.4 Income and/or gains from investments: RON 200,000
- 2. Annual CASS base: RON 79,200
- 3. CASS due: RON 7,920
- 5. Additional amount due: RON 7,920 (if not paid in advance in the 2024 return)