New taxes in Romania: overview of changes
New taxes in Romania aim to increase budget revenues and reduce the public deficit. The relevant initiatives were presented by the country’s finance minister.
The changes affect several areas, including:
– taxation of multinational companies;
– duties on income from land located outside the EU;
– an increase in the mandatory minimum share capital for limited liability companies.
Additionally, the ministry is considering introducing a tax on affiliated persons. This tax would replace the minimum income tax currently used in the country. Currently, businesses with an annual turnover of more than €50 million are subject to a 1% tax. The new mechanism would limit the deduction of expenses for transactions with affiliated structures outside the country.
The following categories apply:
– management fees;
– payments for the use of intellectual property;
– intra-group interest;
– consulting services.
Only 3% of these expenses are deductible. The standard income tax rate of 16% applies to other categories.
Minister Alexandru Nazare states that the new tax system will transform the way transnational companies operate. The previous rate limited business growth and reduced investment inflows. The new tax targets specific regions through which companies export their profits.
The rules for affiliated persons will take effect in 2026. The calculation is based on the 2024 mechanism. Forecasts predict that the new rate will generate 1.7-2 billion lei in budget revenues. For comparison, the 1% income tax generated 1.2 billion lei.
Other innovations
Furthermore, the ministry plans to introduce a new delivery tax. A 25-lei fee will be charged for each parcel worth up to €150. This duty will apply to goods purchased on online platforms outside the EU. Forecasts predict that this innovation will generate 1.3 billion lei in budget revenues.
The ministry has also revised the authorized capital amount for limited liability companies. It will now be 8,000 lei. The previous minimum was 200 lei, but it was abolished in 2020. The updated rules will take effect in 2026, with a two-year transition period. Setting a lower limit on authorized capital allows the state to recover some of the capital in the event of a company’s liquidation.
These measures aim to support Romania’s state budget. According to forecasts, the deficit will be 8.6% of the gross domestic product (GDP) in 2025 and decrease to 8.4% in 2026.
