Royalties & Sports Activity Income Tax Calculator, 2026

How it is calculated

For royalties, a flat-rate expense deduction of 40% is automatically subtracted from gross income (Art. 72 Cod fiscal) — you can opt instead for the real-expense system with documented costs. The 10% tax applies to the remaining net income, which is effectively 6% of gross income. The flat-rate deduction isn't a payment: it's an automatically recognized expense that simply reduces the tax base.

For sports activity income (Art. 68^1 Cod fiscal — contracts concluded under the Physical Education and Sports Law 69/2000, with clubs, federations, for athletes, coaches, referees, doctors, or physiotherapists), there is no flat-rate deduction. The 10% tax applies to gross income, from which only the CASS withheld at source is subtracted — a larger base than for royalties, so an effective tax closer to 10% of gross, not 6%.

Social contributions — genuinely different between the two

CAS (pension, 25%) works the same way in both cases: it is owed only above 12 minimum wages per year (48,600 lei in 2026), on a base of 12 or 24 minimum wages.

CASS (health, 10%) differs a lot. For royalties, the income falls into the basket of passive income under Art. 155 letters c)-h), alongside rentals, dividends, interest, and investments — they are all added together, and CASS is paid as a fixed amount per bracket: 2,430 lei (above 6 minimum wages), 4,860 lei (above 12) or 9,720 lei (above 24 — the maximum cap). For sports activity income, CASS is completely different: 10% directly on gross income, capped at 72 minimum wages (291,600 lei in 2026) — three times the royalties cap — and it is owed even below 6 minimum wages, up to this minimum threshold, unless you are exempt.

Exemption for employees and pensioners

If you also have salary income in the same year, you are completely exempt from CAS and CASS on royalties (Art. 150, and Art. 154 para. (1) letter h¹ of the Cod fiscal, respectively). Pensioners and people insured under their own systems (lawyers, notaries) are exempt from CAS. The same exemption logic applies, in simplified form, to sports activity income as well — if you already have another source that pays CAS/CASS, check your exact situation before assuming you still owe anything.