Starting in 2026, the fiscal framework applicable to intragroup expenses has undergone a major change following the elimination of certain restrictions previously introduced by Law no. 239/2025. Initially, this law provided for a limitation of the deductibility of specific intragroup expenses to 1% of total expenses, applicable to corporate income tax payers that were not subject to the minimum turnover tax (IMCA).
The restrictions mainly targeted expenses related to intellectual property rights, management, and consultancy services, incurred in transactions with affiliated entities outside Romania. The stated objective was to combat base erosion and profit shifting (BEPS), but in practice the measure raised concerns regarding its compatibility with international tax standards.
In this context, Government Ordinance no. 6/2026 intervened to fully eliminate these limitations, following recommendations from the OECD, which expressed concerns about the rigidity and potential negative impact of the new rules. Consequently, Article 25¹ of the Fiscal Code was repealed, and the relevant expenses are once again subject to the general deductibility rule under Article 25 of the Fiscal Code.
Specifically, starting with Q1 2026 (or with fiscal year 2026 for taxpayers applying an annual reporting system), intragroup expenses for intellectual property, management, and consultancy are again fully deductible, provided that the general conditions are met: economic substance, necessity for business activities, and appropriate documentation, including from a transfer pricing perspective.
It is important to note that, prior to the repeal, the legislation also provided several exceptions to the 1% limitation, such as expenses capitalized in the value of fixed assets or expenses related to intellectual property registered in Romania. In addition, taxpayers holding an Advance Pricing Agreement (APA), as well as credit institutions, were excluded from the application of these restrictions.
The removal of the limitations on the deductibility of intragroup expenses brings Romanian tax legislation back in line with OECD practices and reduces both the tax and administrative burden on multinational groups. Nevertheless, audit risks remain, and robust documentation of intragroup transactions continues to be essential.