Emergency Ordinance “trenuleț” on certain fiscal-budgetary measures in the field of public expenses for the justification of general consolidated budget for the year 2025

Recently, the draft of the Emergency Ordinance “trenuleț” was adopted by the Romanian Government, amending and updating Law 227/2015 of the Fisal code. By the time of publishing this tax alert, it has not been published in the Romania Official’s Journal. The tax alert has been prepared on the basis of the draft normative act available on the website of the Ministry of Finance.

Among the most notable new provisions brought by the draft of the Emergency Ordinance, we mention:

Dividend tax

• The dividend tax rate is increased from 8% to 10% for dividends distributed from January 1, 2025. The provisions apply to Romanian legal entities as well as individuals and non-residents.
• Clarifications are made for dividends distributed on the basis of interim financial statements prepared during 2024, the dividend tax rate being 8%, without recalculation of the tax on those dividends after their regularization on the basis of the annual financial statements for the financial year 2024, approved according to the law.

Micro-enterprises

• The threshold for micro-enterprises is reduced from 500,000 euro to 250,000 euro, respectively to 100,000 euro starting with 1 January 2026.
• For the fiscal year 2025, the limit of realized revenues, representing the equivalent in RON of 250,000 euro respectively the equivalent in RON of 100,000 euro as from January 1, 2026, is tested on the basis of the revenues realized by the Romanian legal entity on December 31, 2024, respectively on December 31, 2025. The condition relating to the share of consultancy and/or management income in the total income, as of December 31, 2024, does not apply for the calculation of the limit of 250,000 euro.

Contruction tax

• From 1 January 2025, the construction tax is reintroduced. This is calculated by applying a rate of 1.5% to the value of the buildings existing in the taxpayer's patrimony on 31 December of the previous year, less the value of the buildings for which building tax is due. This also applies to the value of buildings in industrial, scientific and technological parks which, according to the law, are not exempted from the payment of building tax.
• Taxpayers who have opted for a modified tax year will apply this tax starting with the modified tax year beginning in 2025.

Salary income tax and social charges

• New budget measures are introduced with respect to the employees within the public sector.
• The tax incentives granted to employees working in the IT sector, as well as construction, agriculture, food industry are withdrawn starting with the salary income related to January 2025.
• During the period from January 1 to December 31, 2025, for employees who perform activities based on an individual employment contract, employed full-time at the place where the main job function is located, income tax and social charges are not due for the amount of 300 lei/month, representing salary and salary-equivalent income, if certain conditions are cumulatively met.

For more information, the EY team is at your disposal