Tax NewsFlash - January 2025

Dear Readers,

Effective from 1 January 2025, legislative changes raise the rates of social tax and certain social payments.

From 1 January 2025, rates for the following taxes and payments increased as follows:

• Social tax: from 9.5% to 11%;
• Social contributions: from 3.5% to 5%;
• Employer’s obligatory pension contributions: from 1.5% to 2.5%;
• Unified payroll tax: from 21.5% to 23.8%.

Additionally, starting from 1 January 2025, tax agents are required to calculate and pay social contributions on income paid to individuals under civil law contracts. The procedure for calculating and paying social contributions on civil law contracts income is similar to the procedure for employment income.