Taxation and social contributions for income from social media posts

Income from independent activities

In the case of individuals earning income from independent activities, income obtained from social media posts is considered taxable income. This includes both cash income and income in kind, such as products, services or travel. If you carry out independent activities and obtain income from them in Romania, that income is taxable. Taxable income includes both cash income (financial remuneration) and income in kind (products, services, travel, etc.). Carrying out an independent activity requires meeting at least 4 of the criteria set out in the Codul Fiscal (Fiscal Code), such as freedom to choose the place and manner of carrying out the activity, freedom to carry out the activity for several clients, assumption of the risks inherent to the activity, use of one's own assets and intellectual capacity or physical performance, as well as membership of a professional body responsible for representing, regulating and supervising the profession carried out. Income obtained from independent activities carried out in Romania is deemed to be obtained from Romania, regardless of whether it is received from Romania or from abroad. The net annual income may be determined either on the basis of income norms applicable at the place where the activity is carried out, or under the real system, based on accounting data.

Tax on income from independent activities

Taxpayers earning income from independent activities are required to estimate their net annual income for the current fiscal year by submitting the Declarația unică privind impozitul pe venit și contribuțiile sociale datorate de persoanele fizice (Single Declaration on income tax and social contributions due by individuals). Where net annual income is determined on the basis of income norms, the annual tax due is established by applying a 10% rate to the adjusted annual income norm. Payment of the annual tax due is made to the state budget by 25 May of the year following the year in which the income was earned. Where income is determined under the real system, the tax is established by applying a 10% rate to the estimated net annual income considered taxable income. Payment is made to the state budget by 25 May inclusive of the year following the year in which the income was earned.

Payment of the health social insurance contribution

Taxpayers who carry out independent activities and obtain income in Romania are required to pay the health social insurance contribution if the income estimated for the current fiscal year is at least equal to 6 gross national minimum wages. Falling within the annual threshold is determined by aggregating income from independent activities, intellectual property rights, income from association with a legal entity, income from the transfer of use of assets, income from agricultural, forestry and fish farming activities, income from investments and income from other sources. The annual basis for calculating the health social insurance contribution depends on the level of income earned:

• for income between 6 and 12 gross national minimum wages, the calculation basis is 6 gross national minimum wages in force at the deadline for submitting the single declaration;
• for income between 12 and 24 gross national minimum wages, the calculation basis is 12 gross national minimum wages in force at the deadline for submitting the single declaration;
• for income exceeding 24 gross national minimum wages, the calculation basis is 24 gross national minimum wages in force at the deadline for submitting the single declaration.

Taxpayers who fall within the annual income threshold and are required to pay the health social insurance contribution must complete and submit the Declarația unică privind impozitul pe venit și contribuțiile sociale datorate de persoanele fizice (Single Declaration on income tax and social contributions due by individuals) - Chapter II, Data on tax on estimated income/income norm to be earned in Romania and social contributions due, by the statutory filing deadline.

Situations where the activity is not carried out on a continuous basis

Where the activity carried out is not continuous in nature, it is important to know that income earned by individuals from posts made on various social media platforms, which thereby advertise various companies/brands, is subject to the provisions of Chapter X, "Income from other sources", of Title IV, "Income Tax", of the Codul Fiscal (Fiscal Code).

With regard to tax on income earned from other sources, it is calculated by withholding at source at the time the income is paid by the income payer, by applying a 10% rate to the gross income, thereby constituting final tax. The tax must be paid to the state budget by the 25th of the month following the month in which it was withheld.

It is important to note that taxpayers earning income from other sources owe the health social insurance contribution if they estimate that, for the current year, the cumulative value of such income is at least equal to 6 gross national minimum wages in force at the deadline for submitting the Declarația unică privind impozitul pe venit și contribuțiile sociale datorate de persoanele fizice (Single Declaration on income tax and social contributions due by individuals).

If you have any questions regarding the calculation of income tax on income from advertisements posted on social media, our tax specialists we remain at your disposal to help you achieve the correct results. Analysing and managing income tax can be a complicated task, but it is important to ensure that you comply with all fiscal provisions. If you would like to find out more about our services and how we can help you manage your taxes, please do not hesitate to contact us aici. We are always ready to provide assistance with any fiscal matter you may have.