According to the Law 177/18.07.2017, in the understanding of the income tax, the insurance health voluntary premiums, and the medical services provided as subscription-based services, according to the Law no. 95/2006, republished, with the subsequent changes and additions, paid by the employer for the company’s employees, so that at year level the equivalent on lei of the amount of 400 Euro is not surpassed, are nontaxable. Thus are introduced in the category of nontaxable incomes the medical services provided on the basis of a subscription paid by the employer for the company’s employees, in the limit of the amount of 400 Euro / year/ employee.

               Important: The medical services provided as a subscription under the limit of 400 Euro / year/ employee were not included in the category of the incomes exempted from the payment of the social insurance contributions! Currently in the monthly calculation basis for the contributions of social insurance are not included the following:  „the contributions to a optional pensions fund according to the Law no. 204/2006, …., as well as the insurance health optional premiums, according to the law no. 95/2006, republished, paid by the employer for the company’s employees, so that at year level the amounts mentioned by art. 76 alin. (4) lett. ș) and t) for nontaxable incomes (400 euro / an) are nor surpassed ”.

               In consequence, our opinion is that for the medical services provided as subscription services the social contributions paid by the employer and the employee are still owed, even if they are under the lawful ceiling of 400 euro/year / employee.

This info is issued by ECOVIS Romania as an informing letter over the most important evolutions/changes in the legal and tax fields, and in the investment environment in Romania as well. The information, the analysis and the comments mentioned above are of generic nature and it is not the intention or the imperative of the issuer to be used as a substitute for professional consulting dedicated to individual cases. For advice concerning your specific situation, please contact us  directly.

© ECOVIS Romania SRL – 2017