This is to clarify that individuals who receive the following incomes are obligated to pay social security contributions(CASS):

• income from employment;
• Income in the form of compensation;
• retirement income;
• income from automa activities (PFA, licensed individual, FI, family business, II, sole proprietorship);
• income from freelance professions;
• agricultural incomes;
• Self-employment income with withholding tax;
• Income from participation in a corporate or legal entity taxpayer.

Consequently, an individual who receives dividends as a shareholder in a company under Romanian law will have to compulsorily determine and pay contributions related to the public social security and welfare system.

It is mentioned that the obligation to contribute to national health expenditures does not, according to Law 95/ 2006 (Lege 95/2006), affect nonresidents.

Specifically, the aforementioned law stipulates that the obligation under consideration is borne by individuals who altenatively:

• Have a domicile in Romania;
• Have obtained the right of residence in Romania.

If a nonresident individual is not in either of the above situations, he or she will not be required to make mandatory health care contributions for the specified income.

We are available for further clarification.