The main provisions of the new economic recovery package

On 25 February 2026, the Government Emergence Ordinance No. 8 introducing new measures aimed at economic recovery, boosting productive investments and competitiveness, as well as for amending and supplementing certain fiscal‑budgetary legislation was published.

Among the most relevant measures introduced, 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 (as an alternative to the existing facilities for research development activities). The tax credit is deducted annually from the corporate income tax or the minimum turnover tax due, and if the tax credit is only partially used, the remaining amount becomes a tax receivable. The tax receivable resulting from the unused credit may be used over the following 4 consecutive years for refund or for offsetting other tax liabilities, with certain exceptions, the procedure for offsetting and refunding will be established by a NAFA order. For taxpayers subject to the minimum turnover tax or for those that are part of a tax group, special rules apply for calculation and consolidation, with the tax credit being aggregated at the level of the responsible legal entity. Additionally, revenues representing the difference of the tax credit for research development expenses that is offset or refunded will be treated as non taxable income when calculating corporate income tax. This new mechanism for granting a fiscal incentive for research development activities was developed in the spirit of 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 tax value in the first year of use, with the remaining amount depreciated over the remaining normal useful life) for new assets that are acquired/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, for taxpayers with a modified fiscal year, during the fiscal year starting in 2026). For assets under construction resulting from the acquisition/production of assets started up to 31 December 2025 inclusively (i.e., until the last day of the modified fiscal year ending in 2026), the measure will apply only to the value of the assets put into operation during 1 January 2026 – 31 December 2026 (respectively, during the modified fiscal year starting in 2026). For taxpayers that opted for a modified fiscal year, the law sets out specific rules regarding the period during which super‑accelerated depreciation may be applied.
• taxpayers applying the reinvested profit tax incentive cannot opt for accelerated or super‑accelerated depreciation for those respective assets. By way of exception, if the tax incentive is applied in 2026 (or in the modified fiscal year starting in 2026) for assets in sub‑group 2.1. Technological equipment, i.e., machinery, tools and work installations, as well as for computers and their peripheral equipment, taxpayers may opt for accelerated depreciation. For taxpayers with a modified fiscal year, the incentive applies only to the 2026 portion of the modified fiscal year, in accordance with the specific rules set out in the law.
• taxpayers who record tax reserves established as a result of applying the reinvested profit incentive starting with fiscal year 2026 (or the modified fiscal year beginning in 2026) may not use these amounts to increase share capital, for distribution, or to cover losses for a period of 5 years, starting from the year following the year in which the reserves were created. If this condition is not met, the amounts used become taxable as items similar to revenue. After the 5‑year period expires, the tax treatment depends on how the reserves are used:
  • if the reserves are used for distribution, 50% of their value becomes an income‑similar item and is taxed in the fiscal year in which the distribution takes place;
  • if they are used for share capital increases or for covering losses, the respective amounts are not taxed.

These provisions also apply to the reserves recorded in the accounting evidence as at 31 December 2025, or as at the last day of the modified fiscal year ending in 2026.

The amounts representing the reserves used will be taxed in the order in which they were recorded.

• the minimum entry value for fixed assets (used when calculating tax depreciation) is increased from 2,500 lei to 5,000 lei. The minimum threshold of 5,000 lei will be updated annually based on the inflation index, through a government decision. The remaining un-depreciated tax value of fixed assets with an entry value between 2,500 lei and 5,000 lei, existing in the taxpayers’ patrimony as at 31 December 2025 / the last day of the modified fiscal year ending in 2026, will be recovered over the remaining normal useful life.
• the introduction of a new tax incentive for taxpayers undergoing the process of admission or maintenance of their shares for trading on a regulated market or within a multilateral trading system, either in Romania or in states with which Romania has concluded a legal instrument for the exchange of information, consisting of an additional deduction in calculating the fiscal result of 50% of the expenses related to the listing process and the process of maintaining the listing recorded in the first fiscal year (or modified fiscal year) following the admission to trading;
• the standard filing deadline for the annual corporate income tax return on 25 June inclusively of the following year will be maintained (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 revenue threshold for classification as a micro‑enterprise is set at EUR 100,000 (this threshold being assessed by reference to the turnover defined according to accounting regulations, taking into account the revenues earned by the Romanian legal entity combined with the revenues of any related enterprises). In addition, when calculating turnover, revenues from the transfer of fixed assets / land recorded cumulatively from the beginning of the fiscal year will be added only if the micro‑enterprise transfers more than one asset from any sub‑group, in which case the cumulative revenues from the beginning of the fiscal year will be taken into account;
• the micro‑enterprise tax regime may be applied, by option, starting with the fiscal year following the one during which the conditions are met, and for applying the regime during the fiscal year 2026, the condition regarding the timely submission of annual financial statements will be considered fulfilled if the annual financial statements are submitted by 31 March 2026 inclusively;
• moreover, for newly established legal entities, the regime may also be applied by option if the conditions are met from the date of registration with the Trade Register— with the exception of the minimum requirement of 1 employee, which must be fulfilled within 90 days from the date of registration. An additional clarification is also introduced, according to which the condition regarding the existence of at least one employee is considered fulfilled even if the employee is on sick leave for temporary incapacity to work, as long as the cumulative duration of the leave does not exceed 30 days during the entire fiscal year;
• regarding the exit from the micro‑enterprise regime, it is specified that both micro‑enterprises that exceed the EUR 100,000 revenue threshold and those that fail to submit their annual financial statements on time for the previous financial year (where this obligation applies) will owe corporate income tax starting with the quarter in which these conditions are met.

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

• a 3% tax bonification is granted to taxpayers that are subject to corporate income tax (regardless of the declaration and payment system) / or micro enterprise income tax, calculated on the tax due for fiscal year 2025 (or for the modified fiscal year starting in 2025);
• the central tax authority will verify ex officio whether the conditions for granting the bonifications are met and will issue a decision, without requiring any request from the taxpayer (after the deadline for filing the annual corporate income tax return or, in the case of micro enterprises, after the deadline for submitting the Q4 micro enterprise income tax return);
• the bonification is granted by the tax authority only if the taxpayer meets all of the following conditions:
  • has submitted all tax returns required according to its tax vector, without omissions or delays;
  • has fully and timely settled the corporate income tax / micro enterprise income tax obligations for 2025 (or the modified fiscal year starting in 2025);
  • does not record any other outstanding tax/budgetary liability at the legal deadline for filing the annual corporate income tax return for 2025 / the modified fiscal year starting in 2025, or the deadline for the Q4 micro enterprise income tax return for 2025.
• if, after the tax bonification is granted, the taxpayer files a rectifying return that reduces the tax due, NAFA will adjust the tax bonification accordingly and issue a new decision, reducing the initially granted amount. However, if the taxpayer files a rectifying return / receives an assessment decision that results in an additional tax liability greater than 3%, NAFA will cancel the initially granted tax bonification —the same applies if, according to the rectifying return, no tax liability remains. A new decision will be issued, and the tax bonification amount will be added back to the taxpayer’s fiscal record.
• amounts that are subject to the tax bonification are not refunded, but are used exclusively to offset the taxpayer’s fiscal obligations. However, if the statute of limitation for requesting a refund expires for the obligations covered by the tax bonification and they have not been offset against other budgetary liabilities, the amounts will be refunded.

Income tax and social charges

Income from independent activities

• For income derived from independent activities determined based on accounting records (real system):
  • in the category of expenses with limited deductibility, in addition to the contributions to facultative pension funds/schemes administered by authorized entities established in EU Member States or belonging to the European Economic Area, the scope is extended to include those administered by authorized entities established in a state adhering to the liberalization codes of the Organization for Economic Co-operation and Development (OECD);
  • are introduced, in 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), administered by authorized entities established in Member States of the European Union or belonging to the European Economic Area, or by authorized entities established in a state adhering to the liberalization codes of the OECD, paid for the taxpayer’s personal benefit, regardless of whether the activity is carried out individually or within an association, within the limit of the equivalent in RON of EUR 400 per year for each individual;
    • contributions to pan-European personal pension products pursuant to Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019, paid for the taxpayer’s personal benefit, regardless of whether the activity is carried out individually or within an association, within the limit of the equivalent in RON of EUR 400 per year for each individual;
    • 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, irrespective if 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.

The provisions regarding income from independent activities mentioned above:

• enter into force on 1 March 2026 and apply as follows:
  • the ones regarding contributions to facultative pension funds, occupational pension funds, and pan-European personal pension products (PEPPs) apply starting with income related to the year 2026, with the following considerations:
  • for contributions to facultative pensions, in 2026, when verifying the 400 euro annual cap, amounts paid during the period 1 January – 28 February 2026 are also taken into account;
  • in case of contributions to occupational pensions and pan-European personal pension products, the rules apply for contributions paid starting with 1 March 2026;
• the provision regarding the limited deductibility of amounts paid for acquiring shares, bonds, and/or units issued by undertakings for collective investment in transferable securities applies starting with income related to the year 2026, for amounts paid and settled starting with 1 March 2026.

Salary income

• With respect to salary income:
  • in the category of non-taxable income (within the monthly ceiling of up to 33% of the basic salary), for both income tax and social contributions purposes, in addition to contributions to facultative pension funds/schemes administered by authorized entities established in Member States of the European Union or belonging to the European Economic Area, the scope is extended to include those administered by authorized entities established in a state adhering to the liberalization codes of the OECD;
  • are introduced in the category of non-taxable income (within the monthly ceiling of up to 33% of the basic salary), for both income tax and social contribution purposes, contributions to an occupational pension fund under Law no. 1/2020, as well as contributions to occupational pension schemes classified as such in accordance with the occupational pension legislation by FSA, administered by authorized entities established in Member States of the European Union or belonging to the European Economic Area, or by authorized entities established in a state adhering to the OECD liberalization codes, when borne by the employer for their own employees, within the limit of EUR 400 per year for each individual.
• Similar to contributions to a facultative pension fund, amounts representing contributions to an occupational pension fund, borne by the employer for their own employees under the conditions of the Fiscal Code, are considered income related to the months corresponding to the period for which the payment was made, based on supporting documentation.
• Regarding the determination of salary income tax at the employee’s basic function location:
  • in addition to contributions to facultative pension funds/ schemes administered by authorized entities established in Member States of the European Union or belonging to the European Economic Area, deductions may also be applied for contributions made to such facultative pension funds/ schemes administered by authorized entities established in a state adhering to the OECD liberalization codes;
  • the possibility of deducting the following is also introduced:
    • contributions to occupational pension funds under Law no. 1/2020 and to occupational pension schemes classified as such in accordance with the occupational pension legislation by  FSA, administered by authorized entities established in Member States of the European Union or belonging to the European Economic Area, or by authorized entities established in a state adhering to the OECD liberalization codes, borne by employees, within the annual cap representing the equivalent in RON of EUR 400;
    • contributions to pan-European personal pension products pursuant to Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019, borne by employees, within the annual cap representing the equivalent in RON of EUR 400;
    • 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, within the annual cap representing the equivalent in RON of EUR 400, excluding related transaction costs.

The provisions regarding income from salaries mentioned above:

• enter into force on 1 March 2026 and apply starting with income related to March 2026, with the following considerations:
  • in the case of contributions to facultative pensions, in 2026, when verifying the 400 euro annual cap, amounts paid during the period 1 January – 28 February 2026 are also taken into account;
  • in the case of contributions to occupational pensions and pan-European personal pension products, the rules apply for contributions paid starting with 1 March 2026;
  • the provision regarding the deductibility, for salary income tax purposes, of amounts borne by employees for acquiring shares, bonds, and/or units issued by undertakings for collective investment in transferable securities applies starting with income related to March 2026, for such shares, bonds, and/or units paid and settled starting with 1 March 2026.

Discount on income tax

• A discount of 3% is introduced 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 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 current Emergency Ordinance, 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 legislation are met. Any amounts overpaid will be refunded or offset in accordance with the Fiscal Procedural Code.

Value Added Tax

From a VAT perspective, the Ordinance increases the threshold applicable for the cash accounting VAT scheme, as regulated under Law No. 227/2015 on the Fiscal Code.

Accordingly, the current threshold of RON 4,500,000 will be increased as follows:

1. For the period 1 March – 31 December 2026, the threshold will be set at RON 5,000,000;
2. As of 1 January 2027, the threshold will undergo a further adjustment and will be increased to RON 5,500,000.

It should be noted that:

• Taxable persons applying the cash accounting VAT scheme who exceed, during January 2026, the turnover threshold of RON 4,500,000 but remain below the threshold of RON 5,000,000 will not be deregistered from the Register of Taxable Persons Applying the Cash Accounting VAT Scheme.
• Taxable persons applying the cash accounting VAT scheme who exceed, during February 2026, the threshold of RON 4,500,000 but remain below the threshold of RON 5,000,000 will not be required to submit to the competent tax authorities the notification regarding the turnover achieved for changing the system and will likewise not be deregistered from the Register of Taxable Persons Applying the Cash Accounting VAT Scheme.

New non-reimbursable funding programmes for investments

The Government is introducing a comprehensive package of nine 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 nine facilities are structured according to the specific needs of the priority sectors. Thus, there will be dedicated schemes for:

1. strategic investments over EUR 200 million
2. manufacturing industries with trade deficits
3. valorisation of mineral resources, especially strategic and critical raw materials
4. research and high‑tech development
5. the defence industry
6. increasing regional competitiveness
7. newly established companies with capital from the diaspora
8. investments for the development of Romanian tourism
9. investments that contribute to accelerating innovation in entrepreneurship and the digital transition

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.