social health insurance tax on dividends

With only two weeks left to submit the Consolidated Tax Statement, today we’re speaking about one of its key components: the social insurance tax on dividends. We’re structuring our discussion in who needs to do what, to make it easier to understand.

The subject of this tax are the companies’ shareholders which are individual persons. They can be either tax residents in Romania - or outside Romania. When I am a Romanian tax resident and I have a company which has distributed dividends in 2019, corresponding to the financial year 2018, which are greater than approximately 5 000 EUR, then I need to declare it by the end of July - and I need to pay the social insurance tax on dividends by mid-December. The same goes if I’m a tax resident outside Romania - but, in this case, I could be granted an exception if I already have a valid social insurance, a tax residency certificate from at home - and have my Romanian accountant file a specific tax form. If I have more associates and our company has distributed dividends above the threshold, then each of us will be liable to declare and pay the social insurance tax for dividends, separately. We cannot only place it on one of us.

It’s good to know that I can get discounts if I declare electronically instead of using paper, and if I pay early. Thank you and I look forward to receiving your questions on www.piroi.eu and facebook.com/businessinromania