Calculate the net income after taxes, social contributions and determine the total tax cost. We help you understand how self-employment taxation works in Romania. Enter the amount of the annual gross revenue and the tool will automatically perform the calculations.

Self-employment tax calculator - 2024

Calculate the net annual income, after deducting the applicable taxes.

As a self-employed person, you need to submit an annual tax return (declaration) for reporting and paying your taxes (health insurance contribution, pension fund contribution and income tax) on your annual earnings. The deadline for the annual tax return is May 25th of the following year.

Paying self-employment taxes

Self-employment taxes are the income tax and the mandatory social contributions that individuals working independently must pay to the Romanian state budget.

In Romania, freelancers are responsible for managing their own tax obligations. Unlike employees whose taxes are automatically deducted by employers, self-employed individuals must calculate, report, and pay their taxes independently. These taxes include:

Income tax (“Impozit pe venit”), which applies to profits earned from self-employment (10% flat)
Social security contribution (CAS), which supports the public pension system (25%, applied to certain income thresholds)
Health insurance contribution (CASS), which is funding access to public healthcare services (10%, applied to certain income thresholds)

These contributions are not only legal obligations but also ensure long-term benefits, such as retirement pensions and access to the public healthcare system. It is important to manage your self-employment taxes accurately, so you can stay compliant with Romanian tax laws, avoid penalties, and plan your finances effectively.

Complexities of self-employment tax calculation

Freelancers and small business owners in Romania often face a multitude of regulations, taxes and compliance deadlines, not to mention the possibility of tax law changes that can catch you off guard. Thus, calculating self-employment taxes in Romania can be a challenging task. Tax rules change very frequently, and they often include multiple thresholds, brackets, and exemptions that vary depending on each specific situation.

Our self-employment tax calculator is regularly updated to stay aligned with the latest Romanian legislation, keeping your estimates as accurate as possible.

Still, no online tool can replace the guidance of a professional tax consultant who understands the complexities of the Romanian tax law. So, think of this calculator as an excellent first step rather than the ultimate solution.

A self-employed person must also register to the Romanian Registry of Commerce to be able to carry out the economic activities in Romania. The registration application requires submission of certain documents proving the person is qualified for rendering those economic activities. It also requires documents attesting the self-employed person’s business address in Romania.

Important

The self-employment tax calculator is designed to offer general guidance on calculating taxes for self-employed individuals in Romania. It implements tax calculation rules as per the current Romanian tax law provisions applicable to self-employment income. However, these calculators may not cover all specific rules relevant to various deductions and tax exemptions that can be claimed by self-employed persons. Consequently, this tax calculator should be utilized solely for general information purposes.