Law No. 141/2025 on some fiscal-budgetary measures

Jul 28, 2025

The takeaway

Law no. 141/2025 brings important amendments to the Fiscal Code and introduces measures to ensure compliance with the commitments assumed by Romania regarding the budget deficit target.

The main amendments and additions to the Fiscal Code and the Government Emergency Ordinance no. 158/2005 regarding leave and allowances for social health insurance are presented below.

In detail

The Tax Code has been amended and supplemented.

Title II – Corporate Income Tax

Tax on Dividends

The tax on dividends will be increased from 10% to 16% for dividends distributed as of 1 January 2026 or the first day of the amended fiscal year beginning in 2026. For dividends distributed based on interim financial statements prepared during 2025 or the amended fiscal year beginning in 2025, the rate of 10% is maintained.

Additional tax for credit institutions

The tax increases:

To 4% starting 1 July 2025(from 2% until 30 June 2025);

The increased rate to 4% applies to turnover achieved as of 1July 2025 (it remains at 2% for turnover achieved until 30 June 2025, except for credit institutions with a market share of less than 0.2% of total net assets of the banking sector.

New rules have been introduced for calculating the additional tax:

If during the period from 1 July 2025 to 31 December 2025 inclusive, elements included in the calculation of the turnover corresponding to the first semester are determined to have changed, the turnover tax for this period is recalculated by submitting a corrective declaration. For elements of the turnover corresponding to previous fiscal years, identified errors in the carried forward result are corrected in the turnover calculation for the year for which the error was found by submitting a corrective declaration.

Title IV – Income Tax

Non-taxable income/Income from other sources

Excluded from the category of non-taxable income is income received in cash or in kind from the sale of waste ferrous and non-ferrous metals and their alloys from personal assets. This income is included in the category of income from other sources for which payers are obliged to withhold income tax at source.

Dividend income tax

The tax on income from distributed dividends and gains obtained from shares in collective investment undertakings will increase from 10% to 16% as of 1 January 2026.

Tax on certain interest income

An obligation has been introduced for individuals to calculate, declare via the single declaration and pay tax on interest from bonds issued by companies, which are legal entities resident in Romania, on foreign capital markets. This measure applies to income disbursed by the issuing company and recorded in the accounts of individuals as of 1 August 2025, irrespective of the bond issuance date.

Pension income tax

Monthly taxable income from pensions is determined by deducting the non-taxable amount of RON 3,000 and, where applicable, the social health insurance contribution (CASS) due from the pension income. These rules are also applicable to pension income obtained from abroad.

Tax on gambling income

The tax rate applicable to gambling income of up to RON 10,000 has been increased from 3% to 4%.

TITLE V – Mandatory social contributions

The obligation to pay a 10% CASS has been introduced for the part of pension income exceeding the monthly amount of RON 3,000. The measure applies to income for the period from 1 August 2025 to 31 December 2027.

The following insured people are excluded from the category of individuals exempt from paying CASS: spouses and parents without their own income who are dependent on an insured person; people who benefit from unemployment benefit or from other social protection rights granted from the unemployment insurance budget; people on accommodation leave and those on parental leave; individuals who benefit from social assistance; monastic staff of recognized religions.

Individuals who earn income for which CASS is due may opt for the payment of the contribution for dependents. CASS is determined by applying a 10% rate to the calculation base of six monthly national minimum salaries, in force as of 1 January of the year in which the option is exercised. The option can be exercised at any time during the year by submitting the Single Declaration on income tax and social contributions owed by individuals. Payment is made in two installments: 25% of the CASS due, on the date of submission of the single declaration, and the other 75% by 25 May of the year following that in which the option was exercised.

TITLE VII – Value Added Tax (VAT)

Starting 1 August 2025:

The standard VAT rate increases from 19% to 21%.

The reduced rate of 9% increases to 11% for the following supplies of goods/services:

Delivery of medicines for human use.

Delivery of the following goods: food and beverages intended for human and animal consumption, live animals and birds of domestic species, the CN codes of which are established by methodological rules, except for the following categories:

1. Alcoholic beverages.

2. Non-alcoholic beverages falling under CN code 2202.

3. Foods with added sugar, the total sugar content of which is at least 10g/100g of product, other than powdered milk for newborns, infants and young children.

4. Food supplements defined by Law 56/2021:

Water supply and sewage services.

Delivery of water for irrigation in agriculture.

The delivery of fertilizers and pesticides in agriculture, including chemical ones, seeds and other agricultural products intended for sowing or planting, as well as the provision of services of the type normally used in agricultural production, provided for by joint order of the Minister of Finance and the Minister of Agriculture and Rural Development.

The delivery of housing as part of social policy intended to be used as nursing homes and retirement homes, children’s homes and recovery and rehabilitation centers for disabled minors.

Accommodation within the hotel sector or those with a similar function, including the rental of land arranged for camping.

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

The reduced rate of 5% increased to 11% for:

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

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

the delivery of firewood to individuals and legal entities, under the conditions provided by law;

the delivery of thermal energy intended for categories of consumers in the cold season is specifically regulated by law.

The reduced rate of 9% has been increased to 21% for:

the delivery of veterinary medicines;

the delivery of plants and ingredients used in food preparation, seeds and food for bee;

the delivery of housing with a maximum useful area of 120 m² and whose value does not exceed RON 600,000. During the period 1 August 2025 to 31 July 2026, the reduced rate of 9% may be maintained for the delivery of housing that meets the following criteria:

The contract must be valid until 1 August 2025 and provides for the payment of an advance (for contracts concluded between 3 July and 31 July 2025, this advance must be 20%).

The housing must be delivered by 31 July 2026 and can be inhabited as such.

The person must not have purchased other housing with a reduced rate as of 1 January 2023.

Information about the conclusion of these contracts will also be entered in the ‘Register of housing purchases with reduced VAT rate’ by notaries public.

services consisting of allowing access to sporting events, fairs, amusement parks and recreational parks whose activities are classified under CAEN codes 9321 and 9329, fairs, exhibitions, cinemas and cultural events, other than those exempt from tax;

delivery and installation of photovoltaic panels, solar thermal panels, heat pumps and other high-efficiency, low-emission heating systems, including installation kits, including all necessary components purchased separately, intended for residences or for central or local public administration buildings, but not for commercial companies;

for construction, rehabilitation or modernization services of state hospital units, as well as for deliveries of medical equipment intended for these units and provided through non-governmental organizations, carried out until 1 August 2025, provided that the VAT refund is requested by 31 October 2025.

Title VIII – Excise duties and other special taxes

Harmonized excise duties will be increased in two stages:

for alcohol and alcoholic beverages by 10% from 1 August 2025 and by 10% from 1 January 2026;

for processed tobacco by 3% from 1 August 2025 and by 3% from 1 January 2026;

for gasoline and diesel by 10% from 1 August 2025 and by 10% from 1 January 2026.

The excise duty level for gasoline and diesel applicable will no longer be linked with the consumer price index in 2026.

Excise duties will be introduced on still wines, apple and pear cider, and mead as of 1 August 2025. On 1 January 2026, the level of excise duties on these products will be increased by 10%.

The specific excise tax on cigarettes will be increased to RON 576.36/1,000 cigarettes for the period 1 August 2025 to 31 March 2026, representing a 3% increase from the rate applicable as of 1 April 2025.

Similarly, non-harmonized excise duties will be increased in two stages:

for liquids containing nicotine by 20% from 1 August 2025 and by 20% from 1 January 2026;

for products intended for inhalation (including those containing tobacco) by 3% from 1 August 2025 and by 3% from 1 January 2026;

for non-alcoholic beverages with added sugar by 10% from 1 August 2025 and by 10% from 1 January 2026.

The non-harmonized excise duty on nicotine products not containing tobacco and intended for oral consumption will be increased by 5% from 1 January 2026.

Government Emergency Ordinance No. 158/2005 on leave and social health insurance benefits has been amended and supplemented

The gross monthly allowance for temporary work incapacity caused by common illnesses or accidents unrelated to work is determined for each episode of illness by applying the following percentages to the calculation base determined according to the law: