The already famous and much-discussed Decree Law 16/2022 made some changes regarding the tax regime of dividends starting from the year 2023.

In summary, the changes in place as of 2023 affect the two levies:

Dividend tax rising from 5 percent to 8 percent
The health care contribution that is due On exceeding the ceiling of 6 minimum legal salaries
and the basis of calculation is limited to 24 minimum salaries.

1. Dividend Tax

As a new element for 2023, dividend tax is determined by applying a rate of 8% on the gross dividend paid. Up to and including 2022, the rate was 5%. This provision applies to dividends paid after January 1, 2023.

Therefore, if dividends are distributed in 2022, but are paid in 2023, the tax rate is 5%, but the tax on those dividends must be paid by January 25, 2023.

Otherwise, the calculation rules remain the same:

(a) the tax is withheld by the dividend-paying company

(b) the paying company remits the dividend tax to the balance sheet by the 25th of the month following the payment of dividends and files Declaration 100. An exception is when dividends were distributed during the year but were not paid until the end of the year, and then the tax is due until January 25 of the following year.

(c) the calculation method is simple:

Gross dividends = 100,000 lei

Tax = 8%* 100,000 lei=8,000 lei

Net dividends = 92,000 lei

2. Contribution to health (CASS)

The health care contribution (10% rate) related to income received by individuals, including dividend income, changes radically in that it will no longer be payable based on a ceiling of 12 minimum salaries (in effect in 2022), but rather for 2023, by as many as 3 brackets :

(a) The health care contribution will be calculated by reference to the level of 6 gross minimum wages, in effect at the time of filing the single declaration, in the case of realized incomes between 6 and 12 gross minimum wages;

(b) the health care contribution will be calculated by reference to the level of 12 minimum gross wages, in effect at the time of filing the single declaration, in the case of incomes between 12 and 24 minimum gross wages;

(c) the health contribution will be calculated by reference to the level of 24 gross minimums, in effect at the time of filing the single declaration, in the case of incomes above 24 gross minimums.

Calculation examples – comparison 2022 vs 2023

The minimum wage per economy in 2022 was 2,550 lei and in 2023 it was 3,000 lei.

1. Dividends distributed for a gross amount of 13,000 lei: Year 2022 Tax 5%*13,000 lei=650 lei – Year 2023: 8%*13,000 lei =1,040 lei
CASS is not due in both 2022 and 2023 as, it does not exceed the limit of 12 minimum salaries (rule for 2022): 12* 2,550 lei= 30,600 lei – it is also not due for 2023 as it does not exceed the limit of 6 minimum salaries: 6* 3,000 lei=18,000 lei

2. Gross dividends distributed amounting to 25,000 lei: Year 2022 Tax 5%*25,000 lei =1,250 lei – Year 2023: 8%*25,000 lei=2,000 lei
CASS net dividends = 25,000 lei-1,250 lei = 23,750 lei <30.600 lei, so no contribution is due on net dividends in 2022 but in 2023 it is because the net received income of = 23,000 lei, settles between 6-12 minimum wages, so CASS is due =10%*6*.3000 lei =1,800 lei