Emilian Duca, Tax Consultant, Tax & Business Solutions: At the moment, we can say that the pension tax system looks like a progressive tax system. Up to the value of 2,000 lei, the taxation is zero, from 2,000 to 4,000 lei 10% income tax is applied on the difference, and from 4,000 lei upwards a 10% income tax is applied plus the health contribution of 10 %.
♦ Over 300,000 pensioners with pensions of over 4,000 lei will pay the health contribution (CASS) of 10% this month. This category includes the 200,000 “special” retirees ♦ There are about 5 million retirees in Romania, and the state spends 100 billion lei annually on “normal” pensions and 10 billion lei on “special” pensions. ♦ Over one million retirees with pensions of over 2,000 lei have been paying income tax of 10% for amounts exceeding the value of 2,000 lei for several years
Over 330,000 retirees with pensions over 4,000 lei will receive, starting this month, lower pensions, as they will pay the health contribution of 10%. The measure was adopted at the end of last year, by the emergency ordinance 130/2021, published in the Official Gazette on December 18, 2021 and which brings amendments to the Fiscal Code.
Of the total of 330,000 retirees who would pay the health contribution, most – about 200,000 – are special retirees (from the structures of the Ministry of Interior, Ministry of Defense, Romanian Intelligence Service, Foreign Intelligence Service, etc.), and the remaining about 130,000 are retirees from the social insurance system with pensions higher than 4,000 lei per month.
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