Emergency Ordinance Amending the Fiscal Code Regarding the Taxation of Pension Income

On March 13, 2025, the Romanian authorities published Emergency Ordinance No. 11/2025 in Official Gazette No. 225, introducing amendments to Law No. 227/2015 on the Fiscal Code. On the same day, Official Gazette No. 220 featured NAFA Order No. 299/2025, which approves the format, content, submission process, and administration of Form 112.

Furthermore, on March 19, 2025, Official Gazette No. 242 published Order No. 382/2025 issued by NAFA, approving the format and content of Form 397, titled "Informative Declaration on Alternative Transport Services Using Passenger Vehicles and Drivers Facilitated by Digital Platforms”

The most significant legislative changes are as follows:

Taxation of Pension Income

Prior to the amendment, pension income that included a non-contributory component was subject to a progressive tax regime, in accordance with Article 101 of the Fiscal Code. As a result of the changes (following Decision No. 724 of December 19, 2024, of the Constitutional Court of Romania regarding the admission of the exception of unconstitutionality of the provisions of Article 101 of Law No. 227/2015 on the Fiscal Code), the taxation regime has been standardized by eliminating the progressive rate and the distinction between contributory and non-contributory component of pension income. Currently, the tax on pension income is applied at a flat rate of 10%, calculated on the monthly taxable income after deducting the non-taxable monthly amount of RON 3,000 from the pension income.

These changes come into effect on the date of publication in the Official Gazette, starting from March 13, 2025.

Amendments to Form 112

• "Declaration Regarding the Payment Obligations for Social Contributions, Income Tax, and the Nominal Record of Insured Persons"

The update of Form D112 has been implemented to reflect the following legislative provisions:

• The non-taxable amount of RON 300 from the national minimum gross salary, which will remain applicable for the entirety of the year 2025.
• The elimination of sections related to the tax facilities previously granted to employees in the IT&C, construction, and agri-food sectors, following the repeal of the legal provisions effective from January 1, 2025.

These changes take effect upon publication in the Official Gazette, specifically from March 13, 2025.

The electronic version of Form 112 is available on the NAFA portal.

Order issued by NAFA on Establishing the Format and Content of Form 397

• “Informative Declaration on Alternative Transport Services Using Passenger Vehicles and Drivers Facilitated by Digital Platforms”

This form is intended for the reporting of income generated by drivers and alternative transportation operators utilizing digital platforms to provide passenger transport services.

In accordance with the provisions of this order, operators of digital platforms facilitating alternative transportation activities are required to submit Form 397, on a monthly basis, no later than the last calendar day of the month following the reporting period.

The electronic version of Form 397 will be made available on the National Agency for Fiscal Administration (NAFA) portal prior to the submission deadline, to facilitate taxpayer compliance.