Changes on How Social Contributions Must be Registered by Companies

Written by: Bridgewest

Starting with January 2018, companies must observe the new social contributions and need to comply in accordance with the applicable legislation for businesses in Romania and the recent provisions. Among these, the social insurance contributions, the work insurers contribution, and the social health contribution are part of the new structure of obligations payable by companies. To properly understand the new legal responsibilities and the tax structure for companies, our accountants in Romania can offer support an information.

New accounting rules for companies in Romania

This year started with several improvements of the Romanian Fiscal Code which observe the payment of social contributions as a company with establishments and activities in this country. In this direction, besides submitting the annual financial reports, companies must consider the following obligations:
•   form 4315 - Social insurance contribution;
•   form 4316 - Work insurers contribution;
•   form  646 - Social health contribution;
•   expenditures on social insurance for work contribution.
The above-mentioned contributions must be introduced to the annual reports and statements by companies in Romania and also by NGOs (non-governmental organizations) in the country. Because the new changes will affect the operations of companies in Romania, it is best to avoid any penalties in this sense and ask for assistance and guidelines from our team of accountants in Romania. Our advisors can also perform audits in Romania for any type of business you might have.

Which are the mandatory social contributions in Romania?

We mention foreigners that for opening companies in Romania, they must understand and consider the social contributions they need to pay for their employees. Among them, there are a few which, according to the law, they enter the obligations of employees, except the cases in which the employer agrees to pay such contributions. Please consider the following mandatory social contributions for employees in Romania:
•    pension contributions for normal working conditions (25%, paid by the employee to the authorities);
•    pension contributions for special working conditions for which the employer pays extra 4%.
•    pension contributions for hard working conditions for which the employer pays extra 8%;
•    social health contribution (10% paid by the employer);
•    work insurers contribution (2.25% paid by the employer).
All companies must observe and comply with the new rules regarding the social contributions. For complete support in this sense, please feel free to contact our accounting firm in Romania.