Interest Tax Regime
For individual customers who earned interest income, the bank calculated, withheld and paid to the State Budget the tax on interest, applying the rate of 10% or another tax rate provided by the Tax Code, in the case of non-resident customers.
In 2023, a number of changes have been made to the payment of the social security health contribution ("CASS") on non-wage income, including interest on bank deposits.
In this context, we come to your support and summarize below some information on this topic.
In the case of individuals, with certain exceptions, if the amount of interest income received combined with other 'non-wage' taxable income earned in 2023 exceeds 6 gross minimum wages per country (3.000*6=18.000 RON)then:
Non-wage income is all income received in addition to salary. According to the provisions of the Tax Code, the category of non-wage income includes, among others:
CASS calculation basis for non-wage income, obtained from 2023 onwards, is set according to the level of non-wage income taken into account for determining the CASS, as follows:
Example:
Since, in the above example, the extra wage income earned in 2023 cumulated from several categories of extra wage income, was between 6 and 12 gross minimum wages*, the CASS due will be 1,800 lei (Calculation basis - 6 gross minimum wages, CASS due - 10% x 6 x 3,000 lei = 1,800 lei;).
Thus, in addition to the taxes withheld at source by income payers for each category, namely tax on interest, tax on dividends and tax on the gain from the transfer of securities, the State Budget will be owed, until 25 May 2024 and CASS in the amount of 1,800 lei.
*The CASS calculation base for earned non-wage income is calculated differently depending on the level of income taken into account for the CASS calculation. For the year 2023, for the calculation of the thresholds established by law, the level of the minimum gross salary per country guaranteed in payment of 3,000 lei provided for in Government Decision no. 1,447/2022 for the establishment of the minimum gross salary per country guaranteed in payment is used.
In order to comply with its tax obligations, Banca Transilvania facilitates access to information on the total income received from interest on deposits and savings accounts in the previous tax year.
You can therefore request a document containing the interest received over the past year at any BT branch.
*Note: Banca Transilvania and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for information purposes only and is not intended to provide tax, legal or accounting advice. Further information can also be found on the ANAF website, or you can contact the tax authorities directly.