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October 18, 2021

Gov’t keen to force copyright owners to contribute twice to pension fund

According to a proposal included in the unitary pension law (which has to be approved by Government in February) the employees will be deducted 31 per cent of their copyright or of the revenues obtained further to the conclusion of the civil conventions as contributions to the pension budget. More exactly, the 31.3 per cent contribution will be borne as follows: 20.8 per cent by the employer and 10.5 per cent by the employees.

Unable to expand the taxation to companies that work illegally, the government had the brilliant idea to burden once again the honest tax payers by forcing the copyright owners to pay for two pensions.

The most affected by this measure are the journalists and artists, many of them being paid only subject to author contract. “It is a provision included in the draft pension law, which refers to CAS (Contribution to Social Insurance) payment for those paid through copyright and civil contracts, in order to benefit from pension. This contribution will go up to the level of five average salaries,” the minister of labour, Mihai Seitan, said.

The finance minister Sebastian Vladescu says that the introduction of the payment of the CAS in the case of the copyright contracts and of the civil conventions is actually a lawful measure. “I deem it normal that a revenue received as a salary would be subject to taxation. In principle I agree,” Vladescu said. The Labour Ministry also stressed in a press release that the draft of the Law regarding the unitary public pension system was discussed with the representatives of the unions and employers’ associations, the IMF, the World Bank, the European Commission, the organizations of the pensioners and the Legislative Council. “We should mention that this provision is not applicable to the persons who, on the date when the Law regarding the unitary public pension system went into effect, were pensioners,” also reads the press release.

Vice premier Marko Bela, president of UDMR, disagrees with the introduction of CAS for the copyright and conventions. Moreover Marko Bela declares that he was not aware of this intention.

The intention to introduce the new CAS contribution triggered the discontentment of journalists and artists, as they already pay for a pension contribution from their salaries, therefore if the new tax will be introduced they will contribute twice to the pension system. Moreover the copyright is taxed with 16 per cent currently, and a introduction of 31 per cent additional CAS contribution will considerably diminish their salaries.

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