Hello allow my to give some major updates on taxes in Romania. Tax changes in Romania from 1 August 2025 = Romania’s Law 141/2025: Fiscal Reform – Clear, Impactful, Strategic.
For businesses operating in Romania, the new Law 141/2025, enacted July 25/ 2025 (Monitorul Oficial no. 699), marks a major fiscal reset. It targets improved budget balance while streamlining tax structures across income, VAT, excise, and contributions. Here’s what to know—and how to prepare:
Please see below the main tax measures from Law.141/2025:
Income Tax
Income from other sources
→ Includes income (in cash or in kind) from the sale of ferrous/non-ferrous waste from personal assets
→ Tax rate: 10%
→ Applicable from August 1, 2025
Value Added Tax (VAT)
1. (Starting August 1, 2025)
Standard VAT rate increase
→ From 19% to 21%
2. Reduced VAT rate increase
→ From 9% to 11%
→ Applies to the taxable base for the following goods/services (examples):
• Human-use medicines
• Food and non-alcoholic beverages (with exceptions)
• Non-alcoholic beverages under CN code 2202
• Foods with added sugar containing at least 10 g sugar/100 g product (except infant milk powder)
• Live animals and poultry from domestic species
• Food supplements
• Water supply and sewerage services
• Textbooks, books, newspapers, and magazines (with exceptions)
• Access to museums, castles, memorial houses, monuments, botanical/zoological gardens
• Restaurant and catering services (with exceptions)
Health Insurance Contribution (CASS)
Removal of some CASS exemptions
→ The following will no longer be exempt:
• Spouses/parents without their own income, currently co-insured
• Persons with entitlements established by special decree-laws
January 1, 2026 Dividend Tax
→ Increases from 10% to 16% for:
• Dividends paid to legal persons
• Dividends paid to individuals
• Dividends paid to non-residents
Note:
→ The new 16% rate applies to dividends distributed starting January 1, 2026 (or from the first day of a modified fiscal year beginning in 2026)
→ For dividends distributed based on interim financial statements in 2025, the 10% tax rate still applies, without recalculation at regularization
Why It Matters
These measures reflect Romania’s efforts to increase revenue, reduce fiscal deficits, and align with European macroeconomic fiscal targets. The reform package touches regulators, financial institutions, businesses across industries, and private individuals alike.
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