Published in the Official Gazette No. 699 of July 25, 2025, Law No. 141/2025 introduces a comprehensive package of fiscal and budgetary reforms aimed at enhancing budget revenue collection and aligning the Romanian tax system with current economic realities. The measures affect income taxation, social contributions, VAT, and excise duties, with gradual enforcement from July 1, August 1, 2025, and January 1, 2026.
Business Turnover Tax for Credit Institutions – From July 1, 2025
The turnover tax rate for credit institutions increased from 2% to 4%. Entities with a market share below 0.2% will continue to pay a reduced rate of 2%.
Measures Effective from August 1, 2025
Income Tax
- Interest on bonds issued abroad: A 10% tax will apply for individuals.
- Pensions: The taxable amount will be calculated by deducting a non-taxable 3,000 lei and CASS (if applicable).
- Gambling: Progressive taxation applies (4%, 20%, and 40% brackets).
- Other income: A 10% tax for selling ferrous/non-ferrous scrap metals from personal assets.
VAT
- Standard VAT rate increases from 19% to 21%.
- Reduced rate rises from 9% to 11%, applicable to essential goods/services like medicine, food, books, cultural access, etc.
- The 5% reduced VAT rate is eliminated.
- Reduced VAT on housing: A 9% VAT rate applies between August 1, 2025 and July 31, 2026, under strict conditions.
- VAT exemption for hospital-related NGO activities is removed.
Health Insurance Contribution (CASS)
- Pensions above 3,000 lei: A 10% CASS applies to the amount exceeding the threshold.
- Exemptions removed: Co-insured spouses/parents and certain protected categories now owe CASS.
- New exemptions introduced: Retirees earning from intellectual property and cancer patients.
- Optional CASS payment: Allowed in two instalments (25% + 75%).
Excise Duties
- Increased excise on alcohol, tobacco, and fuel. For instance, cigarette excise will be 576.360 lei per 1,000 cigarettes.
Measures Effective from January 1, 2026
- Dividend tax rises from 10% to 16% for all shareholders, including non-residents.
- Transitional provision: Interim dividends for 2025 remain taxed at 10%.