For most individuals earning income outside of employment, the unified tax return (Declarația unică) is the central fiscal document of the year in Romania. Whether it concerns a sole trader (PFA) invoicing consultancy services, a landlord renting out an apartment, or an investor receiving dividends, the Romanian state consolidates into a single form the reporting of income, the calculation of income tax, and the determination of social contributions.
Although the idea of a single form sounds like simplification, in practice the unified return hides several mechanisms that cause confusion and, often, incorrect payments: the difference between realized and estimated income, the thresholds that trigger the pension contribution (CAS) and the health contribution (CASS), and potential bonuses for early payment.
For foreign investors — from Germany, Austria, Italy, the Netherlands and beyond — this topic is especially relevant. Anyone earning rental income, dividends from a Romanian company, or self-employment income as an individual in Romania must declare it correctly, while also considering the double taxation treaties between Romania and their home country. One principle first: tax rates and thresholds (tied to the minimum wage) change frequently. We explain the mechanisms in an evergreen way and flag values to confirm for the relevant year. For your specific situation, our tax advisory services provide a verified calculation.
What the unified return is and who must file it
The unified return on income tax and social contributions owed by individuals (form 212) is the document through which an individual declares income to the Romanian tax authority (ANAF) and establishes the amounts due. It replaced several separate forms to centralize reporting.
In general, individuals must file if they earn income from categories such as:
- Independent activities — PFA, sole proprietorship, liberal professions (lawyers, doctors, architects, consultants), under the real system or, where permitted, on an income quota;
- Use of property — rental income from real estate or movable goods;
- Investments — dividends, interest, gains from securities and crypto-assets;
- Agriculture, forestry and fishing;
- Other sources and foreign income earned by Romanian tax residents.
Sole traders file practically every year, both for realized income and, in certain cases, for estimated income.
What is declared: realized vs. estimated income
The unified return works on two time horizons:
- Realized income from the previous year — the basis for the final calculation of tax and contributions (the reconciliation).
- Estimated income for the current year — relevant mainly for independent activities taxed under the real system.
For PFA under the real system, income tax applies to net income = revenue collected − deductible business expenses. Accurate tracking of deductible expenses lowers the taxable base legally. For PFA on an income quota, the base is the quota set by ANAF for the activity, regardless of actual income.
Income tax, CAS and CASS: the three components
The final amount on the unified return results from three separate elements with different rules. Confusing them explains why many pay too much or too little.
| Component | Meaning | Calculation base (principle) |
|---|---|---|
| Income tax | Flat rate on net income / quota | Annual net income or income quota |
| CAS (pension) | Contribution to the public pension system | Owed once thresholds in minimum wages are exceeded |
| CASS (health) | Health insurance contribution | Owed above thresholds, with upper and lower limits |
CAS — the pension contribution
CAS is generally owed by persons with income from independent activities if the annual net income exceeds a threshold expressed as a multiple of the minimum wage (typically in tiers, e.g. 12 or 24 minimum wages). Below that threshold, CAS is not mandatory but may be paid voluntarily to accrue pension entitlement. The chosen calculation base cannot be lower than the threshold reached.
CASS — the health contribution
CASS causes the most errors, because the rules on minimum and maximum base have changed several times in recent years. As a principle, CASS is owed once a threshold expressed in minimum wages is exceeded, with a base that may be capped. In certain cases CASS is owed even below the threshold, if the person has no other insured status.
Because tiers, thresholds and rates change year to year, verify the values in force for the reference year before calculating.
Deadlines, payment and bonuses
The unified return usually has a statutory annual filing deadline (historically around 25 May of the following year), filed online through the Virtual Private Space (SPV).
| Stage | Action | Note |
|---|---|---|
| Filing | Declaring realized (and where applicable estimated) income | Annual statutory deadline — confirm the date for the current year |
| Payment | Paying tax, CAS and CASS | In installments or in full, depending on the rules |
| Reconciliation | Adjusting estimated vs. realized | The following year |
In some years legislation provided bonuses — reductions for online filing and/or full early payment. These are not permanent; check whether they apply in the current year.
Relevance for foreign investors
For investors from Germany, Austria, Italy or the Netherlands, it is essential that income earned in Romania (rents, dividends, self-employment) is declared correctly and that double taxation treaties are applied. For reporting to a parent company or filing in the home country, clean documentation of taxes and contributions paid in Romania is indispensable. We help you align both jurisdictions.
Conclusion
The unified return is not a mere formality but the moment when it is actually determined what you owe the Romanian state as an individual or sole trader. Understanding the three components — tax, CAS, CASS — and the relevant thresholds makes the difference between a correct and an incorrect calculation. Because the rules change frequently, the support of a CECCAR-member accountant brings certainty and, often, savings.
Do you need a verified calculation or help filing the unified return? Contact the Conta Fiscal team and we will help you declare correctly and on time.
Frequently asked questions
Who must file the unified tax return in Romania?
Individuals earning income from independent activities (PFA, liberal professions), rentals, investments (dividends, interest, capital gains), agriculture, or foreign income. Sole traders file practically every year.
What is the difference between CAS and CASS?
CAS is the pension contribution (public pension system), while CASS is the health insurance contribution. They are separate contributions with different thresholds and calculation bases; one does not replace the other.
When is the unified return due?
There is a statutory annual deadline for online filing, historically around 25 May of the following year. Verify the exact deadline in force for the relevant reporting year, as it can change.
How is Romanian-source income treated in an investor's home country?
Romanian tax residents also declare foreign income in the unified return. For investors from Germany or Austria, double taxation treaties prevent the same income from being taxed twice.
What are the bonuses on the unified return?
Reductions of the amount due granted in certain years for online filing and/or full early payment. They are not permanent and vary annually, so applicability must be checked for the current year.
Does a sole trader with low income still pay contributions?
It depends on the thresholds. Below the threshold expressed in minimum wages, CAS is not mandatory (it may be optional for pension credit), while CASS follows its own rules. Without other insured status, CASS may still be owed.