The Romanian Government has recently adopted Emergency Ordinance No. 21/2025, amending the rules on the global minimum tax. The changes, effective as of September 1, 2025, aim to align Romanian tax legislation with international standards and to clarify several technical aspects.
What is the global minimum tax?
Introduced in Romania in 2024, this measure ensures that large multinational and national companies pay at least a 15% tax on profits, regardless of applicable tax incentives or reduced tax rates.
Key amendments under EO 21/2025
- Tax credits – the regime of transferable and tradable tax credits was clarified, with explicit rules for issuance, purchase, and use. Their tax treatment is aligned with that of qualified refundable tax credits.
- Top-up tax – the term “national excess profit” was introduced for better consistency with international practice, applicable to groups with different accounting rules or fiscal years.
- Tax protection – rules were simplified and extended to cover not only accounting standards but also consistency and governance principles.
- Calculation formula – a new element was added: the “additional national top-up tax”.
- Companies using another functional currency – revised rules apply to entities operating in currencies other than the Romanian leu.
- Financial statements – companies may present deferred taxes either in explanatory notes or under IFRS.
- Capital reductions – specific fiscal rules were introduced for reductions of equity linked to financial instruments issued in the insurance sector.
- Loss carryforward – groups may now, optionally, carry forward negative tax expenses (tax losses), with clear rules for transfers or disposals of group entities.
- Simplifications and technical adjustments – clarifications on the calculation of tax rates for investment groups, removal of redundant references, and confirmation of the 18-month deadline for filing tax returns and notifications.