Recently, at Costaș, Negru & Asociații, we successfully managed the situation of an athlete against whom ANAF (the National Agency for Fiscal Administration) had initiated enforcement proceedings for an alleged social security contribution owed by natural persons.
In fact, back in 2019, the athlete had entered into a sports activity contract with a Municipal Sports Club, as a participant in sports activities, for the period from July 2019 to June 2025.
Thus, in 2019, the athlete performed sports activities for the respective Club and was remunerated with the net amount stipulated in the contract, whereas the club was the entity under the obligation to pay and remit, on behalf of the athlete, all taxes and duties provided for by Law no. 227/2015 on the Fiscal Code, as subsequently amended and supplemented.
Nevertheless, in October 2025, the athlete was notified of the decision ex officio establishing the social security contribution and health insurance contribution for natural persons for the year 2020. Subsequently, in November, AJFP Arad (the Arad County Public Finance Administration) served the athlete with an enforcement notice and an enforceable title for non-payment of the social security contribution corresponding to the single tax return for the year 2020.
The enforcement proceedings initiated by AJFP Arad in the case at hand were completely unlawful, a fact confirmed by the court of law, which upheld the challenge to enforcement filed by our firm. Our client, in his capacity as an athlete, was under no obligation to pay CAS (social security contribution) or CASS (health insurance contribution), nor was he under an obligation to file a single tax return.
To emphasize these aspects, it is necessary to review the legal provisions in tax matters applicable in the year 2019. According to the provisions of the 2019 Fiscal Code, natural persons earning income under sports activity contracts DID NOT owe CAS or CASS.
Thus, Article 681 provided as follows:
Article 681 Establishment of tax on income from independent activities generated under sports activity contracts, according to the law.
(1) Taxpayers who earn income under sports activity contracts concluded pursuant to the Law on Physical Education and Sports no. 69/2000, as subsequently amended and supplemented, owe income tax, which shall be final.
(2) Income payers, legal entities, or other entities required to maintain accounting records are also required to calculate, withhold, and pay the tax corresponding to the amounts paid and withheld at source.
(3) The tax shall be calculated by applying a 10% rate to the gross income and shall be withheld at source by the income payers provided for in paragraph (2) at the time the income is paid.
Therefore, as far as income tax is concerned, it falls upon the income payer. Consequently, AJFP Arad could not seek recourse against the natural person generating the income, given that the amount had been withheld at source by the income payer.
Regarding the method of establishing, declaring, and paying the social security contribution for income derived from sports activity contracts, these are expressly provided for by Article 151 of the Fiscal Code:
(3) Natural persons provided for in Article 148, paragraph (1), except for those generating income from intellectual property rights or under sports activity contracts, for which the tax is withheld at source by the income payer, shall file the single return on income tax and social security contributions (…)
(5) For natural persons generating income from intellectual property rights or income under sports activity contracts, for which the tax is withheld at source, obtained from a single income payer, and where the estimated net or gross level, as applicable, of such income for the current year is at least equal to 12 gross national minimum wages in force in the year for which the contribution is due, the income payer is required to calculate, withhold, and pay the social security contribution and to file the return referred to in Article 147, paragraph (1). The return shall be filed no later than the 25th day inclusive of the month following that for which the income is paid. The contract concluded between the parties shall designate the income payer responsible for calculating, withholding, and paying the contribution through withholding at source, as well as the selected income for which the contribution is owed in the current year. The level of the contribution calculated and withheld at each payment by the income payer shall be that established by the parties, up to the amount of the contribution corresponding to the selected income specified in the contract.
(…)
(8) Natural persons provided for in paragraphs (5) and (6) shall not file the return provided for in paragraph (3).
Consequently, our client, in his capacity as a natural person earning income from a sports activity contract, was under no obligation to file a single tax return, nor was he under an obligation to directly pay social security or health insurance contributions. This obligation rested with the club, pursuant to both the invoked legal provisions and the sports activity contract entered into.
Under such circumstances, the enforcement proceedings were manifestly unlawful, as they were not directed against the person bearing the payment obligation, namely the person required to file the income tax return.
Currently, the regulations are largely similar, with minor adjustments regarding the thresholds for the contribution calculation base.
The client was represented before the courts by Dr. Cosmin Flavius Costaș, attorney-at-law from the Arad Bar, by attorney Andrei Fătu from de Cluj Bar and by attorney Diana Amelia Jehaliuc, also from the Arad Bar.
Costaș, Negru &Asociații is a civil law firm with offices in Cluj-Napoca, Bucharest and Arad, which provides assistance, legal representation and consultancy in several areas of practice through a team composed of 16 lawyers and consultants. Details regarding legal services and the composition of the team can be found on the website https://www.costas-negru.ro.All rights for the materials published on the company’s website and through social networks belong to Costaș, Negru &Asociații, their reproduction being permitted only for information purposes and with correct and complete citation of the source.
