Law No. 141/2025 on certain fiscal and budgetary measures was published in the Official Gazette No. 699 of July 25, 2025. This legal act introduces immediate and far-reaching changes affecting the economic environment and the work of accounting professionals. Starting August 1, 2025 – and partially from January 1, 2026 – a series of fiscal amendments will come into force, covering income taxation, social contributions, VAT regulations, and excise duty levels. 

Main fiscal measures

July 1st, 2025

The specific turnover tax owed by credit institutions is increased (from 2% to 4%)

Credit institutions - Romanian legal entities and branches in Romania of credit institutions - foreign legal entities owe, in addition to the profit tax, a specific turnover tax calculated by applying the following tax rates to the turnover:

August 1st, 2025

I. Income tax

1. Determination of income tax for some interest income

In the case of bonds issued by companies, legal entities resident in Romania, on capital markets outside Romania, income in the form of interest paid by the issuing company and recorded in the taxpayer's account during the fiscal year is taxed at a rate of 10% of their amount.

The tax on interest income is calculated by taxpayers based on the single declaration on income tax and social contributions due by natural persons (D 212).

Note: These provisions apply to the income paid by the issuing company and recorded in the taxpayer's account starting with August 1st, 2025.

2. Changes to the determination of taxable income from pensions (CASS is also deducted, where applicable)

The monthly taxable income from pensions is determined by deducting from the pension income the monthly non-taxable amount of 3,000 lei and, where applicable, the social health insurance contribution due according to the provisions of Title V — Mandatory social contributions.

Note: It applies starting with the income related to August 2025.

4. The scope of income from other sources is expanded

Included in the category of income from other sources (taxable at a rate of 10%), are income of any kind, in cash or in kind, received as a result of the surrender of ferrous and non-ferrous metals and their alloys, from personal assets, classified as waste according to the law.

Note: The changes in the field of gambling and income from other sources apply to income paid starting with August 1st, 2025.

II. Value added tax (starting from August 1st, 2025)

1. The standard rate is increased from 19% to 21%;

2. The reduced VAT rate is increased from 9% to 11%;

Therefore, the reduced rate of 11% is applied to the taxable amount for the following services and/or delivery of goods (examples):

- the delivery of medicines for human use;

- the delivery of the following goods: food, including beverages, intended for human and animal consumption, live animals and poultry of domestic species, except for alcoholic beverages, non-alcoholic beverages falling under CN code 2202, foods with added sugar, the total sugar content of which is at least 10 g/100 g of product (other than powdered milk for newborns, infants and young children), food supplements.

- water supply and sewerage services;

- delivery of school textbooks, books, newspapers and magazines, on physical and/or electronic media, except those which have, entirely or predominantly, video content or audio musical content and those intended exclusively or mainly for advertising;

- services consisting of allowing access to castles, museums, memorial houses, historical monuments, architectural and archaeological monuments, zoological and botanical gardens;

- restaurant and catering services, except for alcoholic beverages, as well as non-alcoholic beverages falling under CN code 2202.

Transitional provisions:

The natural person, individually or jointly with another natural person/s, may purchase a single home with a reduced VAT rate of 9% between August 1st, 2025, and July 31st, 2026, inclusive, if certain conditions are met:

- the dwelling has a usable area of maximum 120 sqm, excluding household annexes, and a value, including the land on which it is built, that does not exceed the amount of 600,000 lei, excluding value added tax

- the dwelling can be inhabited as such

- the natural person has not purchased another dwelling with a reduced VAT rate starting with January 1st, 2023

- the natural persons has concluded by August 1st, 2025, a legal act between the livings that has as its object the advance payment for the purchase of such a dwelling.

To benefit from the reduced rate of 9%, in addition to the conditions provided above, the natural person, individually or jointly with another natural person/s, for legal acts between living persons that have as their object the advance payment for the purchase of a dwelling, concluded between July 3rd and July 31st, 2025 inclusive, on the date of delivery of the dwelling must provide proof of payment of an advance of 20% of the value of the home excluding VAT, paid in full by July 31st, 2025, inclusive!

3. The reduced VAT rate of 5% is eliminated.

4. The VAT exemption for deliveries or services provided to hospitals through NGOs (construction, rehabilitation, modernization services of hospital units, provided to non-profit entities, supplies of medical equipment, apparatus, devices, articles, accessories and protective equipment, materials and consumables for sanitary use, normally intended for use in the field of healthcare) is no longer applicable. The VAT exemption for these operations, in force until August 1st, 2025, whose chargeable event occurred before August 1st, 2025, is applied by refund, according to a procedure established by order of the Minister of Finance, provided that the refund is requested no later than October 31st, 2025, inclusive. The amounts refunded from the state budget are used by non-profit entities or companies wholly owned by non-profit entities exclusively to finance the acquisition of goods and/or services intended for the same purposes.

III. CASS (health system contribution) – starting with August 1st, 2025

1. The obligation to pay CASS is introduced for pensions exceeding the ceiling of 3,000 lei (CASS is calculated by applying a 10% rate to the part exceeding this ceiling)

The monthly calculation basis for the social health insurance contribution, in the case of natural persons who earn income from pensions, is established by deducting from the pension income the monthly amount of 3,000 lei, for each pension right. Therefore, natural persons who are pensioners remain exempt from paying CASS, for pension income up to the amount of 3,000 lei per month inclusive.

Note: The provisions regarding the tax obligations on the social health insurance contribution due for pension income apply to income related to the period between August 1st, 2025, and December 31st, 2027.

2. Some exceptions regarding the obligation to pay CASS are eliminated

The following persons are no longer exempt from the obligation to pay the health contribution:

- husband, wife and parents without their own income, who are dependent on an insured person (co-insured);

- persons whose rights are established by special decree laws (e.g. politically persecuted persons, deported abroad, etc.).

3. Natural persons who earn income from pensions are exempt from paying CASS, for income from intellectual property rights (along with natural persons who earn income from salaries and similar to salaries, for income from intellectual property rights).

4. Patients with oncological diseases who are beneficiaries of national health programs are exempt from paying CASS, until the respective disease is cured.

5. Payment of the social health insurance contribution due by persons who opt for the payment of this contribution is made in 2 installments, as follows:

IV. Excise duties

Excise duties on alcohol, tobacco, fuels increase;

During the period August 1st, 2025 - March 31st, 2026 inclusive, the specific excise duty on cigarettes is 576.360 lei/1,000 cigarettes

 January 1st, 2026

1. Tax on dividends

Tax on dividends distributed to shareholders legal persons is increased from 10% to 16%.

Tax on dividends is increased from 10% to 16%, for dividends distributed to shareholders/associates natural persons.

 2. Tax on income obtained by non-residents

The tax on dividends distributed to non-resident shareholders/associates increases from 10% to 16%.

Note: The increased rate of 16% applies to income from dividends distributed starting with January 1st, 2026, respectively starting with the first day of the amended fiscal year starting in 2026 for taxpayers who have opted for a financial year different from the calendar year.

In the case of dividends distributed based on interim financial statements prepared during the year 2025/amended fiscal year beginning in 2025, the dividend tax rate is 10%, without recalculation of the tax on the respective dividends, after their regularization based on the annual financial statements for the financial year 2025/amended fiscal year beginning in 2025, approved according to the law. 

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