Romania To Introduce Pension, Healthcare Contributions For Copyright Income – Labor Min

Seitan said the draft will expand the taxation pool to include current non-contributors.

According to the minister, under the upcoming law, income from copyright, civil conventions and individual professional authorizations will be taxed for pension, healthcare and unemployment contributions, like all regular salaries.

The minister said that people whose work card lists two jobs will have to pay social contributions for both of them.

On May 19, "Cartel Alfa" union federation leader Bogdan Hossu said that, instead of freezing pensions, Romania's Government should increase the tax on copyright and individual professional authorization incomes to 30%.

Famous Romanian actors including Maia Morgenstern and former Culture Minister Ion Caramitru protested against the 30% tax on copyright, saying that the measure might increase tax evasion.

On January 19, Seitan said that copyright and civil convention beneficiaries should pay their own social contributions, either amounting to 30.8% of the minimum wage or 30.8% of five gross wages.

According to the unitary pension draft law, people who earn at least four average gross wages per year, including copyright, collaboration contract and civil convention beneficiaries, will be required to contribute to the public pension system.

Last week, Seitan said Romania will draw up a special law to regulate copyright, civil conventions and individual professional authorizations. The labor minister said the special law will set a 5% health insurance contribution and a 5% contribution to the pension fund for income gained from copyright and civil conventions.

A document recently drawn up by the Finance Ministry shows that the Government estimates to collect extra revenues totaling 76 million lei (EUR1= RON4.1792) in 2010 by collecting social security contributions for income gained from copyright and by reducing deductible quotas from 40% to 25%.

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