The main proposals in the new economic recovery package

On 5 February 2026, a draft legislative act was published, proposing the introduction of new measures aimed at economic recovery, boosting productive investments and competitiveness, as well as for amending and supplementing certain fiscal‑budgetary legislation.

Among the most relevant measures proposed, we would like to mention the following:

Corporate income tax

• the introduction of a new mechanism for granting a tax incentive for research‑development expenses, in the form of a tax credit amounting to 10% of eligible expenses – a mechanism in line with Law 431/2023 on ensuring a global minimum level of taxation for multinational enterprise groups and large domestic groups;
• the introduction of the super‑accelerated depreciation method (65% of the fiscal value in the first year of use) for investments in new assets, purchased/produced and put into operation, from sub‑groups 2.1. Technological equipment, machinery, tools and work installations, and 2.4. Animals and plantations, during the period 1 January – 31 December 2026 (or the modified fiscal year starting in 2026);
• for taxpayers applying the reinvested profits tax incentive, by way of exception from the general rule, the option to apply the accelerated depreciation method is introduced to the extent that the exemption applies in 2026 (the modified fiscal year beginning in 2026) for assets under subgroup 2.1. Technological equipment, namely machinery, tools and work installations, as well as for computers and their peripheral equipment;
• the proposal to update the minimum entry value of fixed assets for tangibles (used in calculating fiscal depreciation) from 2,500 lei to 5,000 lei;
• the introduction of a new tax incentive for taxpayers in the process of admitting/maintaining their shares for trading on a regulated market, consisting of an additional deduction of 50% of the expenses incurred with this process;
• for taxpayers recording fiscal reserves set-up as a result of applying the reinvested profits tax incentive starting with fiscal year 2026 (the modified fiscal year starting in 2026), new provisions are introduced regarding the taxation of such reserves, where they are used for share capital increases, distribution or for covering losses before the expiry of the 5 years period or after this period;
• the permanent application of the standard filing deadline for the annual corporate income tax return on 25 June inclusive of the following year (including for non-profit organizations, religious entities, and taxpayers who obtain the majority of their income from cereal, technical crop and potato cultivation, fruit growing, and viticulture – for whom the current filing deadline is 25 February of the following year).

Microenterprise income tax

• the proposal to set the revenue threshold for classification as a micro‑enterprise at
  EUR 100,000 (this threshold being verified by reference to the turnover as defined under accounting regulations). For determining whether a taxpayer remains under the micro‑enterprise regime or exits this regime, the turnover calculation will also include revenues from the transfer of fixed assets/land recorded cumulatively from the beginning of the fiscal year, only in situations where the micro‑enterprise transfers more than one asset from any subgroup;
• the option for a company to return to the micro‑enterprise income tax system is introduced, provided that the relevant conditions are met, even if the company has previously been classified as a micro‑enterprise.
• for newly established micro‑enterprises, the requirement to have at least one employee is proposed to be fulfilled within 90 days from the date of registration (instead of 30 days, as provided under the current rules). Additionally, the condition regarding the existence of an employee will be considered fulfilled even when the employee is on leave for temporary incapacity for work, provided that the cumulative duration of the leave does not exceed 30 days during the entire fiscal year.

Tax bonification applied to the annual corporate income tax / micro-enterprise income tax

• it is proposed to grant a tax bonification to taxpayers liable to pay corporate income tax (regardless of the declaration and payment system) / or micro‑enterprise income tax, amounting to 3% of the respective tax for fiscal year 2025 (or the modified fiscal year beginning in 2025);
• the central tax authority will ascertain ex officio the fulfilment of the conditions for granting the tax bonification by issuing a decision (after the deadline for filing the annual corporate income tax return / the return for the fourth quarter for micro‑enterprise income tax);
• the bonification is granted by the tax authority subject to the taxpayer meeting the following conditions:
  • has all tax returns filed in accordance with its fiscal registration (tax vector);
    
  • has fully and timely settled the liabilities related to the annual corporate income tax / micro‑enterprise income tax;
  • does not record any other outstanding tax or budgetary liabilities as at the legal deadline for filing the returns by which the annual corporate income tax for the year 2025 / the modified fiscal year starting in 2025 is declared, or, as applicable, the micro‑enterprise income tax for the fourth quarter of the 2025 fiscal year is declared.

Income tax and social charges

Income from independent activities

• For income derived from independent activities determined based on accounting records (real system), it is proposed to include the following within the category of expenses with limited deductibility:
  • contributions to occupational pension funds under Law no. 1/2020 on occupational pensions, as well as contributions to occupational pension schemes qualified as such under the relevant occupational pension legislation by the Financial Supervisory Authority (FSA), which have been made (in addition to the authorized entities already provided by the Fiscal Code) to entities authorized in a state adhering to OECD’s codes of liberalization; also included are contributions to Pan‑European personal pension products related to Romanian accounts or sub‑accounts, under the same conditions and subject to the same annual cumulative limit already applicable to contributions to facultative pension funds/schemes;
  • amounts paid for the taxpayer’s personal benefit for the acquisition of shares, bonds and/or units issued by undertakings for collective investment in tradable securities (Exchange Traded Fund – ETF), as defined by the relevant legislation, through entities listed under art. 96^1 para. (1) of the Fiscal Code, whether the activity is conducted individually or within an association, up to the RON equivalent of EUR 400 per year per person, excluding related transaction costs.

Salary income

• With respect to salary income, it is proposed to include, the following income, in the category of non‑taxable income (that is subject to the monthly limitation of 33% of the monthly base salary), both for income tax and social security purposes:
  • contributions to occupational pension funds under Law no. 1/2020 and contributions to occupational pension schemes qualified as such in accordance with the occupational pension legislation by FSA, administered (in addition to the authorized entities already provided by the Fiscal Code) by entities authorized in a state adhering to OECD’s codes of liberalization, under the same conditions and within the same annual cumulative limit already applicable to facultative pension funds/schemes.
• Regarding the determination of salary income tax at the employee’s basic function location, it is proposed to allow the deduction of:
  • contributions to occupational pension funds under Law no. 1/2020 and contributions to occupational pension schemes qualified in accordance with the occupational pension legislation by FSA, administered (in addition to the authorized entities already provided by the Fiscal Code) by entities authorized in a state adhering to OECD codes of liberalization, as well as contributions to Pan‑European personal pension products related to Romanian accounts or sub‑accounts, under the same conditions and within the same annual cumulative limit already applicable to facultative pension funds/schemes;
  • amounts borne by employees for the acquisition of shares, bonds and/or units issued by undertakings for collective investment in tradable securities (Exchange Traded Fund - ETF), as defined by the relevant legislation, through entities listed under art. 96^1 para. (1) of the Fiscal Code, provided that the RON equivalent of EUR 400 per year is not exceeded, excluding related transaction costs.

Discount on income tax

• A discount of 3% is proposed for individuals with respect to the income tax due on income earned in 2025, for which the Annual Tax Return (Form 212) must be filed, provided the following conditions are cumulatively met:
  • The income tax, social security (pension) contribution and health fund contribution due for 2025 - including the health fund contribution due under art. 180 para. (2) of the Fiscal Code — are fully settled through payment and/or offset by 15 April 2026 inclusively;
  • the Annual Tax Return is filed by 15 April 2026 inclusively.
• The discount is to be calculated by the individual taxpayer and reported separately in the Annual Tax Return, subject to subsequent verification. The payable income tax is established by deducting the value of the discount.
• If individual taxpayers have submitted the Annual Tax Return for income earned in 2025 without applying the discount, they may still benefit from it by submitting an adjusted Annual Tax Return by 15 April 2026 inclusively, provided all legal conditions for benefiting from the discount are met.
• Payments already made, representing the income tax for 2025 — performed whether before or after the entry into force of the currently proposed law, but no later than 15 April 2026 inclusively — will be taken into account for benefiting from the discount, provided all conditions set out in the draft law are met. Any amounts overpaid will be refunded or offset in accordance with the Fiscal Procedural Code.

Value Added Tax

The turnover threshold applicable to the cash accounting VAT system is amended, increasing from the current value of RON 4,500,000 to:

• RON 5,000,000, for the period from 1 March to 31 December 2026;
• RON 5,500,000, starting from 1 January 2027.

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.

New non-reimbursable funding programmes for investments

The Government is introducing a comprehensive package of seven financing facilities dedicated to investment projects.

The new programs include both state aid schemes and financial instruments managed by the Ministry of Finance and the Investment and Development Bank (IDB).

The seven facilities are structured according to the specific needs of the priority sectors. Thus, there will be dedicated schemes for:

a) strategic investments over EUR 200 million

b) manufacturing industries with trade deficits

c) valorisation of mineral resources, especially strategic and critical raw materials

d) research and high‑tech development

e) the defence industry

f) increasing regional competitiveness

g) newly established companies with capital from the diaspora

The minimum investment thresholds start at EUR 1 million for research–development projects and go up to EUR 15 million for investments in strategic raw materials, while some schemes also include maximum permitted investment caps.

The budgets allocated to this package are significant and distributed as follows: EUR 1.05 billion for each of the schemes dedicated to the manufacturing industry, critical raw materials, and high‑tech technologies; EUR 200 mil. for the defense industry program; EUR 500 mil. for the competitiveness and regional convergence scheme; EUR 100 mil. for the de minimis scheme dedicated to diaspora‑owned companies.

These allocations are expected to be accessible during the period 2026–2032.

Through these measures, the Government aims to stimulate investments in sectors critical to Romania’s development, reduce the trade deficit in key industries, encourage innovation and the adoption of advanced technologies, and support the creation of highly skilled jobs. At the same time, the package contributes to mobilizing private capital towards strategic projects and enhancing the economy’s long‑term resilience. The new facilities represent an important step toward modernizing the Romanian economy and aligning with European best practices in industrial policy.

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