health insurance tax
Legal & Tax Alerts

Prolongation of term for payment of social health insurance contributions

The payment period of the social health insurance contributions established through annual tax decisions, for the period between 2014 and 2017, was extended by a normative act[1] recently adopted by the Romanian Government that came into force on 23 May 2019.
Apart from the annual tax decisions issued and communicated by the tax authorities before 15 March 2019, regarding the social health insurance contributions, where said contributions shall be paid at the latest on 30 June 2019, according to the legal provisions in force[2], subsequent annual tax decisions have new payment terms as follows:

  • For annual tax decisions issued and communicated by the tax authority between 15 March 2019 and 23 May 2019, the total due contribution shall be paid in (i) 120 days, respectively (ii) 60 days in order to benefit from 10% deduction of the entire amount, starting 23 May 2019;
  • For tax decisions issued and communicated by the tax authority after 23 May 2019, the total due contribution shall be paid in (i) 120 days, respectively (ii) 60 days, in order to receive the same 10% deduction, starting with the communication of the relevant annual tax decision.

Furthermore, the fiscal obligations regarding the social health insurance contributions shall cease for taxpayers who, between 1 July 2015 and 31 December 2017, either did not earn income and did not opt for the payment of social health insurance contributions, or have earned less than the national minimum gross salary and the calculation basis of these contributions refers to the minimum gross salary. If the annual tax decisions regarding such fiscal obligations were not issued until 23 May 2019 for the aforementioned period, such decisions shall no longer be issued.
You can read and download this legal alert in PDF format right here.

[1] Government Emergency Ordinance No. 31/2019 on the grant of tax relief and for amendment and completion of Law no. 227/2015 on the Fiscal Code, for the completion of the Government Emergency Ordinance No. 11/2018 for adopting some budgetary measures and for amendment of the Framework Law No. 153/2017 on the remuneration of personnel paid out of public funds, published within the Official Gazette, Part I, No. 403 dated May 23, 2019.

[2] Government Emergency Ordinance No. 89/2018 on certain fiscal-budgetary measures and for amendment and completion of certain normative acts.

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