Increased pensions will be taxed. What are the amounts withheld by the state

2023-04-19 21:02:00

The average pension reached 2,004 lei in March 2023, according to data from the National Public Pension House (CNPP).

From 1 January 2022, the contribution for social health insurance (CASS) is as follows:

– natural persons who have the status of pensioners are exempted from paying the social health insurance contribution, for income from pensions, income from intellectual property rights.

– for pensions up to 4000 lei, CASS is borne from the state budget.

The income tax is 10% and is withheld from the monthly pension that exceeds the non-taxable amount of 2000 lei.

Duties and taxes

Example 1: In 2022, a Romanian pensioner has a gross pension of 1313 lei.

– does not owe CASS

– tax: it is not withheld from the pensioner, as the amount of the pension is below the ceiling of 2000 lei

Example 2: In 2022, a Romanian pensioner has a gross pension of 2323 lei.

– does not owe CASS

– tax: 32 lei

2323-2000 (tax ceiling) = 323 lei

323 lei x 10% = 32 lei

– net pension: 2291 lei (2323 lei – 32 lei tax)

Example 3: In 2022, a Romanian pensioner has a gross pension of 4343 lei.

– CASS: 34 lei

4343-4000 (CASS ceiling) = 343 lei

343 lei x 10% = 34 lei

– tax: lei

4343-34 (CASS) = 4309 lei

4309 – 2000 (tax ceiling) = 2309

2309 lei x 10% = 231 lei

– net pension: 4078 lei (4343 lei – 34 lei CASS – 231 lei tax), according to adevarul.ro.

There are approximately 4.6 million pensioners in Romania.

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