Tax and Contribution Calculator for Freelancers or PFA in 2024

October 27, 2024
Author: Florian Robescu

Considering that we have entered the last quarter of the year, for many of us it is the right time to review the activity throughout the year and start calculating the taxes we will pay in 2025 for the current year.

According to Law 227/2015 (Tax Code), the taxes and contributions owed are:

• Income Tax calculated at 10% of the net taxable annual income
• Social Security Contribution – CAS (pensions) calculated by applying a rate of 25% to the defined ceilings of 12 minimum wages (12 x 3,300 = 39,600 lei) or 24 minimum wages (24 x 3,300 = 79,200 lei). Thus, the contribution is owed if we reach and/or exceed a net income of 39,600 lei but is capped at the base of 79,200 lei.
• Health Insurance Contribution (CASS) – calculated considering the ceilings of 6 (6 x 3,300 = 19,800 lei) and 60 (60 x 198,000 lei). Thus, if the net income is between 19,800 and 198,000 lei, a rate of 10% will be applied to the amount, with the contribution value not exceeding 19,800 lei (10% x 198,000). If income is less than 6 minimum wages, there are two scenarios: if the previous year had income from salaries, equivalent to salaries or other income subject to CASS of at least 6 minimum wages, CASS is not owed until the ceiling is reached. Otherwise, a difference in CASS is owed up to the amount corresponding to 6 minimum wages (essentially, CASS is owed for 6 minimum wages regardless of whether the ceiling has been reached). The contributions calculator assumes that exceptional conditions are not met.

It should be noted that the minimum wage level used in calculations is that in force on May 25 of the reporting year (in this case, May 25, 2024, meaning a minimum gross wage level of 3,300 lei).

Below you will find a tax and fee calculator that will assist you in determining your tax liabilities.

For more details, we suggest reviewing the bibliographic material on which this article was based:

Law 227/2015 (Tax Code)