Self-Employed Tax in Romania (2026): PFA Income Tax, CAS, CASS and Declaratia Unica
A Romanian PFA (Persoana Fizica Autorizata, authorised individual entrepreneur) pays a flat 10% income tax on annual net income with no personal deduction. CAS (pension) at 25% applies when net income reaches 12 times the minimum wage; CASS (health) at 10% is due on one of three minimum-wage-based tiers. All obligations are self-declared and paid annually through the Declaratia Unica filed with ANAF. Verify all figures with ANAF (anaf.ro) or an accountant.
Income tax for PFA: flat 10% on net income, no personal deduction
A PFA (Persoana Fizica Autorizata) is the most common legal structure for self-employment in Romania. PFA income is taxed at the same flat 10% rate as salary, but the mechanics differ significantly. The 10% income tax applies to net income: gross receipts minus allowable deductible business expenses. Two calculation systems exist: Real-income system (sistem real): the PFA records all revenues and documented deductible expenses; tax is based on actual profit. This is the default system for most activity types and the appropriate approach for higher-income or higher-expense activities. Income-norm system (norma de venit): ANAF publishes annual income norms by activity type and county. Tax is calculated on the published norm regardless of actual income or expenses. This can be advantageous when actual income exceeds the norm but unfavourable if income is lower. Not all activity codes qualify; check ANAF guidance. Critical difference from salaried employment: the personal deduction (deducere personala) does NOT apply to PFA income. The full net income (after business expenses) is subject to 10% income tax with no deducere reduction. Income tax is not withheld monthly by a payer; the PFA is entirely responsible for self-assessment, declaration and payment via the Declaratia Unica. Verify your specific activity code, eligible expenses and applicable system with ANAF (anaf.ro) or a qualified Romanian accountant.
CAS for PFA: pension contributions and the 12 x minimum wage threshold
PFA contributors pay CAS (Contributia de Asigurari Sociale) at 25% of a chosen contribution base, subject to the following rules in 2026: Obligation threshold: CAS is compulsory when estimated or actual annual net income reaches 12 times the monthly minimum wage (12 x SMB). Using the January--June 2026 SMB of 4,050 RON, the six-month reference is 6 x 4,050 = 24,300 RON; if the anticipated July+ rate of approximately 4,325 RON applies, the second half adds 6 x 4,325 = 25,950 RON, giving an approximate full-year reference of 50,250 RON. These figures are provisional and indicative -- the exact annual threshold is determined by official government ordinances. Below the threshold: CAS is not compulsory but may be paid voluntarily to accumulate pension contribution years toward the contributory state pension. Contribution base: when CAS is due, the PFA elects a monthly base between the minimum (12 x SMB expressed monthly) and the maximum allowed (24 x SMB monthly). The 25% rate applies to this chosen base, not to actual net income. Choosing the minimum base minimises the immediate cost but accumulates pension credit at a lower level. Approximate annual CAS at minimum base: 25% x annual minimum base. Using the provisional blended annual base of approx. 50,250 RON: approx. 12,563 RON per year. All figures are provisional. Verify exact thresholds, bases and deadlines with ANAF (anaf.ro) or a qualified accountant.
CASS for PFA: health contributions on three income tiers
PFA contributors pay CASS (Contributia de Asigurari Sociale de Sanatate) at 10% on a fixed base determined by the income tier they fall into. Unlike employed persons who pay CASS on actual gross salary, PFA contributors pay on a fixed minimum-wage multiple regardless of actual income within each tier. Approximate tier structure in 2026 (indicative -- confirm all figures with ANAF): Below 6 x SMB annually: CASS may not be due or a minimum CASS applies; check current ANAF guidance for this band. From 6 x SMB up to below 12 x SMB: CASS base = 6 x SMB; CASS = 10% x 6 x SMB. From 12 x SMB up to below 24 x SMB: CASS base = 12 x SMB; CASS = 10% x 12 x SMB. 24 x SMB or more: CASS base = 24 x SMB; CASS = 10% x 24 x SMB. The system is a step function: CASS does not increase proportionally with income but jumps to a higher fixed base when income crosses a tier boundary. For very high PFA income, CASS is effectively capped at 10% of 24 x SMB annually. Illustrative CASS amounts using a provisional blended annual SMB reference of approx. 50,250 RON: Tier at 6 x SMB base (approx. 25,125 RON): approx. 2,513 RON/year Tier at 12 x SMB base (approx. 50,250 RON): approx. 5,025 RON/year Tier at 24 x SMB base (approx. 100,500 RON): approx. 10,050 RON/year These are estimates only. Exact amounts depend on minimum wage ordinances in force. Verify with ANAF (anaf.ro) or an accountant.
Declaratia Unica: the annual self-assessment declaration
All PFA income tax, CAS and CASS obligations are declared and paid through the Declaratia Unica (Single Declaration), filed annually with ANAF. Typical deadline: for the prior fiscal year the Declaratia Unica is usually due by 25 May of the following year -- for fiscal year 2025 the deadline would typically be 25 May 2026. ANAF sets and may adjust the exact date each year; always confirm on anaf.ro. Two-part structure: Part I covers actual income and contributions for the prior year (2025). This is used to calculate final income tax due and reconcile CAS and CASS payments. Part II covers estimated income and the pre-declaration of CAS and CASS contributions for the current year (2026). Estimated contributions are generally payable by the same deadline. Payment: income tax and contributions for the prior year plus estimated contributions for the current year are typically due on or before the declaration deadline. ANAF may offer instalment options in certain cases. Filing method: the Declaratia Unica is filed electronically via the ANAF online portal (SPV -- Spatiul Privat Virtual) using a digital certificate or mobile-based identity token. Paper filing is available only in limited circumstances. Amendments: if actual income differs significantly from estimates, an amended declaration may be filed to adjust contributions. Late filing and late payment attract penalties and interest. Given the complexity of PFA obligations, engaging a Romanian accountant (contabil autorizat) from the outset is strongly recommended. Always verify current deadlines, forms and payment procedures with ANAF (anaf.ro) or an accountant.
FAQ
Does the personal deduction (deducere personala) reduce PFA income tax?
No. The personal deduction is available only to employees at a primary workplace and does not apply to PFA self-employment income. PFA net income is taxed at 10% on the full net profit after documented business expenses, with no deducere personala reduction. This is one of the key tax differences between salaried employment and PFA status in Romania.
When is CAS compulsory for a PFA in 2026?
CAS at 25% is compulsory when estimated or actual annual net income reaches or exceeds 12 times the monthly minimum wage (provisionally approximately 50,250 RON for the full year 2026 based on the expected SMB values -- treat this as indicative). Below that threshold, CAS can be paid voluntarily to accumulate pension entitlement years. Verify the exact threshold with ANAF (anaf.ro) or an accountant, as it depends on the official minimum wage ordinances for 2026.
What is the Declaratia Unica and when must it be filed?
The Declaratia Unica (Single Declaration) is the annual self-assessment form through which PFA and other self-employed taxpayers declare income, calculate income tax, and report CAS and CASS contributions. It covers both the completed prior year and estimated obligations for the current year. It is filed electronically via the ANAF SPV portal, typically by 25 May each year. Payment is generally due by the same date. Always verify the current-year deadline on anaf.ro.
Can a PFA deduct business expenses from taxable income?
Yes, under the real-income system (sistem real), a PFA can deduct documented business expenses that are directly related to the authorised activity. Examples include equipment, consumables, business travel, professional subscriptions, and qualifying home-office costs. All expenses must be supported by valid fiscal documents. Under the income-norm system (norma de venit), no expense deduction applies -- tax is based on the published norm. Verify the rules for your specific activity code with ANAF (anaf.ro) or an accountant.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.