Tax inspectors could go after sole traders because of vagueness of new law

The law that modifies the taxation of sole traders, which came into force on July 1, does not clarify what "dependent" activity means. Considering that the government ordinance is meant to supplement budget revenues, it could see tax inspectors go after those who were working as sole traders to avoid paying certain taxes.

Whilst so far sole traders, who carried out independent activities, paid a 16% tax, as well as a 5.5% health insurance contribution, and a contribution of at least 200 RON to the pension fund, starting July 1 they may have to pay contributions amounting to over 27% of their gross income. Why? Because fiscal inspectors can abuse the fact that the law is vague when it comes to specifying what at a dependent activity means, with sole traders to potentially be required to pay higher contributions, even retroactively.