New financial reforms planned by Romania's finance minister aimed at increasing revenue sources
Romania is set to implement a series of tax reforms aimed at boosting tax revenues and tightening fiscal discipline, as announced by the Romanian Finance Minister, Alexandru Nazare.
One of the key changes is the introduction of a new tax on expenses in four risk areas (management fee, consultancy, interest on loans, and intellectual property) for limited liability companies (SRLs), if these expenditures exceed 3% of the deductibilities. This new tax is expected to generate significant revenues for the budget, with estimates suggesting it could generate RON 1.3 billion (EUR 260 million) per year.
In addition, the new tax will replace the 1% minimum income tax currently charged to companies with revenues over EUR 50 million. This change is expected to generate RON 1.7-2.0 billion (EUR 340-400 million) compared to the current tax.
The tax authority (ANAF) will come under stricter supervision of the Finance Ministry to ensure the integrity of its personnel and the transparency of its activities. This move is part of an overall effort to improve the efficiency and accountability of the tax authority.
The first package of tax reforms, effective August 1, 2025, includes an increase in the dividend tax rate, VAT rates, and excise duties, but there is no finalized or effective tax specifically targeting multinational companies or parcels reported yet.
Regarding the proposed tax reforms targeted at multinational companies, the second package of reforms is still pending legislation expected by the end of August 2025. This package reportedly includes provisions targeting intra-group expenses that affect multinational and national groups, restrictions on financing companies under financial strain, and measures aimed at addressing profit shifting and fraud. However, Romanian tax experts have warned these provisions may have negative economic impacts, be ambiguous, or breach international agreements. This warning may delay the approval of these measures.
To ensure transparency, all B2C companies will be required to accept both cash and cards for transactions. Additionally, the restructuring of companies' debts to the budget will be carried out under tighter regulations, including tighter deadlines.
The status of the 462,000 "inactive taxpayers" will be settled, who owe some RON 3.5 billion (EUR 700 million) to the state. Furthermore, all Romanian limited liability companies will be required to have a capital of RON 8,000 (EUR 1,600), a change from the current RON 200 (EUR 40).
However, it's worth noting that extra-EU platforms can avoid this new tax on parcels by setting up firms in neighboring countries. Additionally, there is no clear, confirmed information on a new tax specifically on parcels (parcel deliveries) or detailed expected revenue figures from these proposed reforms in the available information.
Sources:
- Gov.ro
- Ziarul Financiar
- Romania-Insider
- BizLad
- Romania-Insider (Tax Experts' Warning)
- The Romania tax reforms, which involve changes in business Finance, also include politics, as the stricter supervision of the tax authority ANAF aims to improve the transparency of its activities and ensure the integrity of its personnel.
- The proposed tax reforms, under discussion in the general-news, encompass measures targeting multinational companies, such as provisions aimed at addressing profit shifting and fraud, and this could potentially have significant impacts on Romania's business landscape.
