On March 30, 2023, the Minister of Finance issued a general interpretation on the taxation of overdue social and health insurance premiums paid by an employer (ref. DD3.8203.1.2023).

According to this interpretation, outstanding social and health insurance premiums paid by the employer from its funds for current and former employees and contractors do not constitute their taxable income. At the same time, the employer will not be able to include in its tax expenses the overdue contributions paid from its funds to the extent that they should have been financed from the income of the employee, former employee, contractor or former contractor.

The above tax consequences on the part of employees and the employer apply to both social security and health insurance contributions.

The issuance of a general interpretation means that the Director of the national chamber of Revenue will refuse to issue individual interpretations regarding the same factual situation or future event. It also means that the Director of the national chamber of Revenue should declare ex officio the expiration of individual interpretations that are inconsistent with the general interpretation.