Tax changes introduced by the 2nd fiscal-budgetary package

On December 15, 2025, Law regarding the establishment of measures for the recovery and efficiency of public resources and for the amendment and completion of certain normative acts was published in the Official Gazette No. 1160.

In the following we have included a selection of the main changes brough to the Fiscal Code, which will entry into force starting with 1 January 2026.

Corporate income tax

A new article 251 is introduced regarding the Special Regime for taxpayers that record expenses with affiliated entities which are not incorporated/ establihed and do not have their place of effective management in Romania:

• Taxpayers, other than those provided under Article 15 and those who in the previous year record a turnover exceeding EUR 50 million, who, in relation to affiliated entities, record expenses related to intellectual property rights, management expenses and consultancy expenses, as they are presented in the official accounting reports prepared for the financial year 2024 / the financial year different from the calendar year starting in 2024, whose share in the total expenses of the same nature recorded with affiliated and non-affiliated entities, from the   same  accounting  reports,  is  over 1%, consider these expenses deductible, up to the limit of 1% of the total recorded expenses.
• Starting with the fiscal year 2027 / the modified fiscal year starting in 2027, the 1% ratio, as well as the expenses mentioned above, shall be determined based on the expenses reported in the tax return established by order of the Minister of Finance.
• Taxpayers established during a fiscal year, for the fiscal year of establishment, apply the provisions at the end of the calculated fiscal year, taking into account expenses related to property rights, management and consulting expenses as total expenses, as recorded in the accounting. These provisions are applicable to taxpayers established during the year 2025 / the modified fiscal year starting in 2025, for determining the fiscal result of the fiscal year 2026 / the modified fiscal year starting in 2026.
• The following expenses do not fall under the scope of these provisions: (i) expenses representing intellectual property, management, and consultancy incurred for the acquisition of registration in Romania of trademarks, designs, industrial models, copyrights, or other similar rights, and (ii) expenses that are capitalized in the value of tangible or intangible assets, in accordance with the applicable accounting regulations.
• In the case of a tax group, the provisions mentioned above are applied accordingly by the members, depending on the individual situation.
• The article does not apply to taxpayers who hold an advance pricing agreement or, starting with 2027, request the National Agency for Fiscal Administration (NAFA) to issue such an agreement for transactions with non-residents affiliated parties. In case the agreement is rejected, the CIT for the relevant amounts shall be recalculated retroactively, and any additional tax liabilities shall be assessed from the quarter/ year in which the deduction was originally made.
• In the case of credit institutions (Romanian legal entities and branches in Romania of foreign credit institutions), interest expenses recorded in relation to their affiliated entities are not taken into account.
• For the purposes of the above legislative provisions, affiliated entities are those defined according to the applicable accounting regulations.

At article 45, after paragraph 23, a new paragraph, para. (24), is introduced:

• Taxpayers who have reduced the value of assets under construction/ assets according to indicators I and A in Article 462 para. (2), are required to retain these assets in their patrimony for a period at least equal to half of their economic useful life, but not more than 5 years.
• In the event of non-compliance with this condition, the minimum tax on turnover for the respective amounts must be recalculated, and additional tax liabilities are imposed, with the obligation to submit an amended tax return.
• The following types of assets are not covered by these provisions: (i) assets transferred as part of reorganizations; (ii) assets disposed of in liquidation/bankruptcy proceedings; (iii) assets destroyed, lost, stolen, or defective and replaced; and (iv) assets removed from the estate as a result of fulfilling legal obligations.

Considering the above, we recommend companies to conduct a detailed analysis of the structure and nature of transactions with related parties and the impact of the new regulations. We believe it is essential to continue adhering to the transfer pricing regulations, as well as to evaluate the opportunity to enter into Advance Pricing Agreements, that can bring significant benefits in managing tax risks.

Personal income tax

In the area of income tax and social contributions, among the most important amendments, we mention:

a. New income included in the definition of income from independent activities

• Income obtained from providing accommodation services, as well as from short-term rentals of more than 7 rooms located in privately owned properties/residences are considered income from independent activities.
• The method for determining the annual net income from providing accommodation services is provided, by deducting from the gross income the expenses determined by applying a deductible expense quota of 30% on the gross income. The annual income tax will be determined by applying a rate of 10% on the annual net income and will be established by the annual tax return submitted by the taxpayer.
• To determine the net income from providing  accommodation services, the taxpayers will only complete the part related to income from the Tax Record Register and are not required to keep accounting records.
• Taxpayers are required to complete and keep the Accommodation capacity occupancy form.

b. A new method for establishing the minimum level of income norms for income from independent activities

• The minimum level of income norms is established by reference to the level of 12 national minimum gross salaries guaranteed for payment in force on January 1 of the year in which the income is derived (instead of the national minimum gross salary guaranteed for payment in force at the time of establishing the norm) multiplied by 12.

c. Amendments regarding rental income

• Rental income also includes income obtained by the owner, usufructuary, or other legal holder from short-term rental of between 1 and 7 rooms inclusively, located in privately owned properties/residences, regardless of the number of properties/residences in which they are located, during a fiscal year. Thus, for this income to qualify as rental income, the maximum number of rooms is increased from a maximum of 5 to a maximum of 7.
• Short-term rental by owners, usufructuaries, or other legal holders, of rooms located in privately owned properties/residences represents the uninterrupted rental of a room to the same person for periods of up to 30 days in a calendar year.
• A new method for determining the annual net income from short-term rental (previously called “rental for tourism purposes”) of rooms located in privately owned properties/residences is established, namely by deducting from the gross income the expenses determined by applying a deductible expense rate of 30% on the gross income, which eliminates taxation based on the annual income norm.
• For determining the net income from short-term rental of rooms located in privately owned properties/residences, taxpayers will only complete the part related to income from the Tax Record Register and are not required to keep accounting records.
• Taxpayers are required to complete and keep the Accommodation capacity occupancy form.
• Starting from the fiscal year in which the number of rooms rented out on short-term, located in  privately owned properties/residences exceeds 7 rooms, the income derived represents income from independent activities and will be subject to taxation according to the new rules established for independent activities (applicable to income derived from providing accommodation services), as mentioned above.

d. Increase in tax rates on income obtained from the transfer of securities and from transactions involving derivative financial instruments, for transfers/transactions carried out through Romanian intermediaries

• For securities and derivative instruments held/traded for a period ≥ 365 days, the tax rate increases from 1% to 3%.
• For those held/traded < 365 days, the tax rate increases from 3% to 6%.

e. Increase in the income tax rate on the annual net taxable gain from the transfer of securities, from any other operations with financial instruments, including derivative financial instruments, as well as from the transfer of investment gold, which are not carried out through Romanian intermediaries

• For gains from such operations, which are not carried out through Romanian intermediaries, the income tax rate increases from 10% to 16%.

f. Increase in the income tax rate for income from the transfer of virtual currency

• The income tax rate for gain derived from the transfer of virtual currency increases from 10% to 16%.

g. Increase in the maximum annual calculation base for establishing the health insurance contribution in the case of income from independent activities

• The maximum annual calculation base for establishing the health insurance contribution in the case of income from independent activities is increased, from the level of 60 national minimum gross salaries to the one of 72 national minimum gross salaries.

h. Transitional provisions for certain income obtained in the year 2025

• For income from independent activities obtained in 2025 from rental activities for tourism purposes, for which the net income was determined in real system or based on income norms, the tax obligations are those in force in the year in which the income was derived. The carried-forward loss which was not offset, as well as the tax loss recorded in the fiscal year 2025 represents a final loss for the taxpayer.
• For rental income obtained in the year 2025, from the rental for tourism purposes, by owners of rooms located in  privately owned properties/residences, other than those classified as tourist reception structures under specific legislation, for which the determination of net income was based on income norms, as well as in cases where the determination of net income was carried out in real system, according to the provisions of Chapter II - Income from independent activities,  the tax obligations are those in force in the year in which the income was derived. The tax loss recorded in the fiscal year 2025 represents a final loss for the taxpayer.
• For income from independent activities derived in the fiscal year 2025, the tax obligations regarding the health insurance contribution are those in force at the date the income was derived.

i. Luxury tax

• The level of the luxury tax increases from 0.3% to 0.9%.

The amendments enter into force and apply as follows:

• Those regarding the income obtained from providing accommodation services and from short-term rentals – will enter into force on the 1st of the month following the publication of the law in the Official Gazette (i.e., starting January 1, 2026) and will apply starting with the income for the year 2026;
• Those regarding gains from the transfer of securities and from transactions with derivative financial instruments carried out through Romanian intermediaries - will enter into force on 1 January 2026 and will apply to transfers/transactions performed starting 1 January 2026;
• Those regarding the gains from the transfer of securities and from transactions with derivative financial instruments and investment gold that are not carried out through Romanian intermediaries - will enter into force on 1 January 2026 and will apply starting with the income related to the year 2026;
• Those regarding income from virtual currency transfers – will enter into force on 1 January 2026 and will apply to gains obtained starting 1 January 2026;
• Those regarding the maximum annual calculation base for establishing the health insurance contribution in the case of income from independent activities - will enter into force on 1 January 202 and will apply to income related to year 2026.
• Those regarding the luxury tax - will enter into force on 1 January 2026

Local taxes

In the area of local taxes, among the most important changes we mention:

a. Building tax

• Certain exemptions are eliminated (e.g., for buildings owned by foundations established by will; for buildings of an institution or units operating under the coordination of certain ministries), and at the same time new  exemptions are introduced (e.g., for new buildings constructed as part of investment projects in the manufacturing/ warehousing/ logistics industry for a period of 2 years, in compliance with state aid legislation).
• For residential buildings owned by individuals, the taxable value per square meter is increased, and the reductions are eliminated.
• For legal entities, the provisions regarding residential buildings and mixed-use buildings are removed, leaving only those pertaining to non-residential buildings.

b. Land tax

• Certain exceptions are removed and added, in correlation with those for the building tax.
• The taxable value per hectare is increased with regard to land located in both extravilan and intravilan, recorded in the agricultural register under a category of use other than land with buildings.

c. Vehicle tax

• Certain exemptions are eliminated (e.g., for vehicles used exclusively for emergency interventions; for passenger river vessels, boats and small boats used for transporting individuals residing in certain regions of the country, as provided by law; for vehicles of institutions or units operating under the coordination of certain ministries, etc.). Additionally, new situations are introduced in which local councils and the General Council of the Municipality of Bucharest can decide to grant an exemption or reduction of the vehicle tax.
• For registered vehicles, the method of calculating the tax is changed, so it is calculated based on engine capacity and pollution standards, by multiplying each 200 cm³ group or fraction thereof by the corresponding amount provided by law. The relevant ministries will collaborate for the exchange of data regarding the pollution standard.
• In the case of hybrid vehicles with CO2 emissions of 50g/km or less, the tax is reduced by up to 30%, according to the decision of the local council/General Council of the Municipality of Bucharest.
• In the case of electrically powered vehicles, the vehicle tax amounts to 40 lei per year.

d. Other common provisions – Local taxes

• The percentage of the additional rate for local taxes and fees is increased, which can be up to 100% compared to the maximum levels established by law.
• Local councils and the General Council of the Municipality of Bucharest may grant exemptions or reductions in the payment of local taxes and fees for a period of up to 2 years, based on cost-benefit analyses and predefined criteria, and the total amount of these exemptions or reductions is limited to 5% of the revenues collected from local taxes and fees.

At the same time, this Law adds amendments to the Companies Law no. 31/1990, which we summarize as follows:

• Additional restrictions are introduced regarding the distribution of dividends and financial relations with shareholders or affiliated persons, aimed at protecting the capital of companies. Thus, companies that grant interim dividends cannot provide loans to shareholders or other affiliated persons until these are regularized, and the repayment of loans is prohibited when the net asset falls below half of the subscribed share capital. Non-compliance with these rules attracts joint liability for budgetary obligations and significant contraventional sanctions.
• Stricter conditions are established for the distribution of dividends in the presence of carried forward losses or a net asset diminished to less than half of the value of the subscribed share capital, requiring the coverage of losses and the restoration of capital before any distribution. Companies that, based on interim financial statements, have a net asset value diminished to less than half of the subscribed share capital cannot make interim dividend distributions from the profit of the current financial year unless they have restored the net asset to the minimum value provided by law.
• The sanctioning regime regarding the obligation to restore the net asset is strengthened, and, where applicable, the conversion of loans granted by shareholders into share capital, including for limited liability companies. Clear deadlines, substantial fines, and control competencies for the National Agency for Fiscal Administration (NAFA) are provided, applicable starting from 2027, as well as a series of exceptions for professional investors, investment funds, public or European financing, and certain investments in small and medium-sized enterprises.

For more information regarding the above, the EY team is at your disposal.