Taxes paid by advocates
Social Insurance Contribution
Within 10 working days from registering the organisation form (Advocate’s Office or Associated Office), the advocate is obliged to register at the territorial subdivision of the National Social Insurance House where they have their legal address.
Advocates pay statutory social insurance contributions in a fixed annual amount.
For the year 2024, the mandatory state social insurance contributions is of 27,772 lei. The contribution is paid monthly, in the amount of 1/12 of the annual sum.
The monthly contribution amounts to 2,314.33 lei for the months of January to November, and 2,314.37 lei for December.
The contribution is paid monthly, no later than the 25th day of the following month. Pensioners, people with disabilities and other categories specified in points 1.1-1.5 of Annex No. 1 to Law No. 489/1999 are exempted from this payment.
Advocates are exempted from paying these contributions during medical leave, confirmed by a medical leave certificate.
Advocates are obliged to declare the monthly payment of mandatory state social insurance contributions by submitting form IPC 21 to the State Tax Service. Advocates who are exempted from paying these contributions are also exempted from the reporting obligation.
Public Health Insurance
Within one month from the date of obtaining the license, the advocate is obliged to register at the territorial agency of the National Health Insurance Company.
Advocates pay a full mandatory health insurance payment in a fixed amount by March 31 of the fiscal year.
For the year 2024, the mandatory health insurance payment for advocates is set at 4,056 lei.
Income Tax
Advocates are obligated to pay income tax on the taxable income earned from their professional activities.
The total amount of income tax is set at 12% of the annual taxable income.
Payment of the income tax is made in quarterly instalments, by the 25th day of the month following the quarter. The annual income tax declaration must be submitted by March 25 of the following year.
The following revenue is not taxable:
• ordinary and necessary expenses related exclusively to professional activities, in accordance with Chapter 3 of the Fiscal Code
• exemptions and other deductions, in accordance with Chapter 4 of the Fiscal Code
The advocate has the right to credit the income tax paid in a foreign state from the income earned from practicing law. In this case, the advocate must provide supporting documents for the payment/withholding of income tax in the foreign state, certified by the competent authorities of that state. The documents must be translated into Romanian, except for documents issued in English or Russian.