The new tax code: dividends and health care contributions (CASS)

With the publication of the Law No. 227/2015 (Lege 227/2015) profoundly changed the tax code effective January 1, 2016.

As a reminder, in a measure dated October 27, 2015, the government has already amended some points of the law.

1. The tax on dividends is reduced from 16 percent to 5 percent (whether the recipient is a resident or a nonresident); this change is intended to incentivize the creation of “holding” companies and the accumulation in Romania of capital.
2. Social health insurance contributions (CASS, contributions for social health insurance) are extended to any income produced by individuals residing in Romania with a maximum ceiling for the contribution base of 5 times the average gross salary averaged on an annual basis;
3. People who make no income or below the minimum contribution rate are still obligated to make contributions equal to the minimum contribution rate.

We remain available for clarification.