Self-Employed Tax in Romania (2026): PFA Income Tax, CAS, CASS and Declaratia Unica
- Author
- Radim Sekera — Independent developer and researcher
- Updated
- Review status
- editorial-review
- Publisher
- PayCalcEU
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% applies to actual net income, capped at 72 times the minimum wage. 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 minimum wage in force on 1 January 2026 (12 x 4,050 = 48,600 RON). Codul Fiscal Art. 135^1(3), as amended by OUG 128/2024, fixes this reference to the 1-January minimum wage for the WHOLE tax year -- the annual CAS/CASS thresholds do not move even though the minimum wage itself rose to 4,325 RON from 1 July 2026. 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 an annual base between the minimum (12 x SMB = 48,600 RON) and the maximum allowed (24 x SMB = 97,200 RON); the mandatory-minimum base itself steps from 12x to 24x SMB once net income reaches 24 x SMB. 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. Annual CAS at the mandatory-minimum base: 25% x 48,600 = 12,150 RON for income in the [12x, 24x) SMB band; 25% x 97,200 = 24,300 RON once income reaches 24x SMB. Verify your specific declared base with ANAF (anaf.ro) or a qualified accountant.
CASS for PFA: health contributions on actual net income, capped at 72x the minimum wage
PFA contributors (activitati independente, regim real) pay CASS (Contributia de Asigurari Sociale de Sanatate) at 10% of their ACTUAL net annual income -- not a fixed tiered base. This is a materially different rule from several OTHER self-employment income categories (rental income, investment income, intellectual-property royalties and similar, Codul Fiscal Art. 170 alin. (3)-(4)), which DO use a stepped 6x/12x/24x-minimum-wage base; that tiered rule applies only to those other categories, not to PFA business income. Base: the actual net annual income realised by the PFA (Codul Fiscal Art. 170 alin. (1)). Ceiling: the base is capped at 72 times the minimum wage in force on 1 January 2026 (72 x 4,050 = 291,600 RON), so annual CASS cannot exceed 10% x 291,600 = 29,160 RON regardless of how much higher actual net income is. This ceiling was raised from 60x to 72x SMB by Legea 239/2025, effective for income realised from fiscal year 2025 onward, and (like the CAS threshold above) stays fixed at the 1-January SMB for the whole year. No minimum floor: unlike CAS, CASS on PFA business income has no minimum-base floor -- a PFA with zero or negative net income for the year owes no CASS. Worked examples (2026 SMB = 4,050 RON): net income 30,000 RON -> CASS = 10% x 30,000 = 3,000 RON. Net income 100,000 RON -> CASS = 10% x 100,000 = 10,000 RON (still below the 291,600 RON ceiling). Net income 400,000 RON -> CASS is capped at 29,160 RON (10% x 291,600) even though actual income is far above the ceiling. Verify your specific declared income and the current ceiling with ANAF (anaf.ro) or a qualified 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 minimum wage in force on 1 January 2026 (12 x 4,050 RON = 48,600 RON). This reference does not move even though the minimum wage itself rose to 4,325 RON from 1 July 2026 -- Codul Fiscal Art. 135^1(3), as amended by OUG 128/2024, fixes the annual CAS/CASS thresholds to the 1-January value for the whole tax year. Below that threshold, CAS can be paid voluntarily to accumulate pension entitlement years. Verify your specific situation with ANAF (anaf.ro) or an accountant.
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.
Sources and claim support
- MMC Law (law firm alert on Legea 239/2025) — Legea 239/2025: 'plafonul pentru calculul contributiei de asigurari sociale de sanatate (CASS) a fost majorat de la 60 la 72 de salarii minime pe economie', applicable to income realized starting in fiscal year 2025 (accessed 2026-08-16). Supports 1 documented value used in this guide.
- Agentia Nationala de Administrare Fiscala (ANAF), Directia Generala Regionala a Finantelor Publice Brasov — ANAF (DGRFP Brasov) amendment table, OUG 128/2024: Codul Fiscal Art. 148(1) as amended -- CAS due once annual net income '... a caror valoare anuala cumulata este cel putin egala cu 12 salarii minime brute pe tara'; Art. 148(2)(a) as amended sets the mandatory-minimum base at '12 salarii minime brute pe tara' for income in [12x, 24x) SMB (accessed 2026-08-16). Supports 2 documented values used in this guide.