PFA Taxes in Romania

Do you wish to register as a self-employed individual? Our lawyers in Romania answer some of the popular questions about the taxation regime for this business form.

What is the current PFA taxation system in Romania?

Due to the big differences between social contributions paid by employees and those who are authorized self-employed persons (PFA), the Ministry of Finances suggested a change in the tax system for PFA.

An employee pays social contributions based on their income, while PFA that usually make a lot more money, can pay them according to tthe  minimum gross salary of 4,050 RON/month in force on 1 January 2026 (4,325 RON/month from 1 July 2026).

So, the differences can be overwhelming.

According to the law in place, at the moment, an employee that earns 5.000 RON per month gross salary, will pay contributions of 1,750 RON per month (25% CAS and 10% CASS), plus 10% income tax, while a PFA with the same earnings can pay less per month.

Our Romanian lawyers can give you more updated information and assist you with this calculation.

Despite the fact that the Romanian state wants to encourage entrepreneurship, applying this system of taxes can lead to significant differences between the income of a PFA that opted for the minimum limit of contributions payment and an employee.

The PFA taxes and contributions applicable in 2026 are presented below.

Working with our Romanian law firm is reccomended for those professionals who are just starting out as well as those who wish to be up to date with these changes.

2026 PFA taxes

In 2026, the PFA is subject to the following taxes and contributions:

• Social security contributions:

CAS (the pension): starting with 2023, a limit of 24 minimum gross salaries applies to PFAs with a net income of at least 97,200 RON in 2026 (24 x 4,050 RON). In this case, the contribution is calculated according to the net income:

• Less than 12 minimum gross salaries, the pension contribution is not mandatory.
• Between 12 and 24 minimum gross salaries, the contribution is calculated relative to the limit of 12 salaries (48,600 RON in 2026) and the amount is 12,150 RON/year (25% x 48,600 RON), i.e. 1,012.50 RON/month.
• Over 24 minimum gross salaries, the contribution is calculated relative to the limit of 24 salaries (97,200 RON in 2026) and the amount is 24,300 RON/year (25% x 97,200 RON), i.e. 2,025 RON/month.

CASS (health contribution): In 2026, the health contribution is 10% of the net income, with a minimum base of 6 minimum gross salaries (24,300 RON) and a maximum base of 72 minimum gross salaries (291,600 RON), therefore the contribution is as follows:

• Less than 6 minimum gross salaries: CASS is calculated on the minimum base of 6 salaries (24,300 RON), i.e. 2,430 RON/year (202.50 RON/month).
• Between 6 and 72 minimum gross salaries: CASS is 10% of the actual net income.
• Over 72 minimum gross salaries: CASS is calculated on the maximum base of 72 salaries (291,600 RON), i.e. 29,160 RON/year (2,430 RON/month).

• The income norm:

Since 2023, the income norm can be used only up to a gross annual income of 25.000 EUR and PFAs whose income exceeds this limit must determine their net income in the real system from the following year and pay the taxes based on it.

For example, if your PFA records a gross annual income above the 25.000 EUR limit in one year, from the following year you will have to determine the net annual income in the real system.

• The income tax: remains the same, with a value of 10% of the net income.

We remind entrepreneurs that the calculations above use the gross minimum salary of 4,050 RON/month in force on 1 January 2026, which is the value used for PFA contributions in 2026 (from 1 July 2026 the minimum salary is 4,325 RON/month).

You can contact our tax lawyers in Romania for more information about these changes and how they will influence your business.

Are there advantages to opening a PFA instead of an SRL in Romania?

Based on this modifications, taking into account the taxes paid by a PFA and those paid by a SRL, most small entrepreneurs are wondering which is the most suitable option.

When it comes to the income taxes, microenterprises pay a single rate of 1% of their revenue (since 1 January 2026; at least one employee is required), while a PFA pays 10% x income + CASS + CAS.

Still, after we draw the line, a PFA is the one with more fiscal advantages compared to the SRL:

• The money they earn can be spent any time
• The fiscal debt is smaller than in the case of the owner being employed at his own microenterprise

Therefore, the law needs a fast modification regarding the minimal limit that gives PFA’s an advantage regarding fiscal contributions, but it severely disadvantages employees.

The experts at our Romanian law firm can provide more details as needed.

Because the CAS and CASS thresholds and bases are expressed in minimum gross salaries, they change whenever the minimum wage increases.   Since 2023, the income norm threshold has been reduced from EUR 100,000 to EUR 25,000. As seen above, the CAS and the CASS contributions have changed as well.

The team of experts at our law firm in Romania can give you more details on the taxation and the reporting requirements for the PFA. Contact us for more details.

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