Romania's Fiscal Code in 2026: What Has Changed

Legal position as at: 24 October 2026

Romania's Fiscal Code (Law no. 227/2015) has been amended repeatedly since mid-2025. The main package was Law no. 141/2025, published on 25 July 2025, which raised VAT from 1 August 2025 and the dividend tax from 1 January 2026. It was followed by Government Emergency Ordinance (GEO) no. 89/2025, which reshaped the micro-enterprise regime from 1 January 2026, Law no. 239/2025, which changed local taxes, and GEO no. 8/2026, which adjusted the micro-enterprise conditions again in February 2026. Below are the rates and rules in force on 24 October 2026, with the provision that sets each of them.

At a glance

VAT: 21% and 11%

Since 1 August 2025, the standard VAT rate is 21% (Article 291(1) of the Fiscal Code, as amended by Law 141/2025). Before that date it was 19%.

The former reduced rates of 9% and 5% were replaced by a single reduced rate of 11% (Article 291(2)). The 11% rate covers, among others, medicines for human use, food and non-alcoholic beverages (with exclusions for alcoholic drinks, certain sweetened drinks, food with at least 10 g of added sugar per 100 g and food supplements), water supply and sewerage, school books, books, newspapers and magazines, access to museums and monuments, firewood, hotel accommodation, and restaurant and catering services (excluding alcoholic drinks and certain sweetened drinks). The list was extended on 18 October 2026 to include certain sugar-based feed for bees.

What it means in practice:

• check that invoicing software applies the right rate to each product code, since the exclusions within the food category are detailed;
• for contracts with prices stated "VAT included", check who bears the 2 percentage point increase;
• where a supply straddles a rate change, the rules on the chargeable event decide which rate applies.

Dividend tax: 16% from 2026

The dividend tax rose from 10% to 16% for dividends distributed from 1 January 2026, or from the first day of a modified financial year beginning in 2026 (Article 43(2) of the Fiscal Code and Article VII(1)(a) of Law 141/2025). The same 16% rate applies to dividends paid to individuals, as a final tax withheld by the paying company (Article 97(7)).

Two points matter for planning:

• Interim dividends from 2025. Dividends distributed on the basis of interim financial statements drawn up during 2025 kept the 10% rate, without recalculation when the annual 2025 accounts were approved (Article VII(2) of Law 141/2025).
• The participation exemption remains. Dividends paid between Romanian companies are exempt where the recipient has held at least 10% of the shares for an uninterrupted year at the date of payment and both companies meet the conditions in Article 43(4), including that they pay profit tax.

The tax must be declared and paid by the 25th of the month following payment. For dividends approved but not paid by the end of the year, the tax is due by 25 January of the following year (Article 43(3)), subject to the exceptions in that paragraph.

For non-resident shareholders, the domestic rate may be reduced under a double tax treaty or eliminated under the EU Parent-Subsidiary rules, where the conditions are met and documented.

Micro-enterprises: one rate, a lower ceiling

The micro-enterprise regime is optional (Article 48(1)) and, since 1 January 2026, works as follows:

• One rate of 1% of taxable revenue (Article 51(1), as amended by GEO 89/2025). The former 3% rate, which applied to certain activities and to higher revenues, was repealed.
• A revenue ceiling of EUR 100,000. To qualify, the company must not have exceeded the lei equivalent of EUR 100,000 in revenue at 31 December of the previous year, using the exchange rate at the close of that financial year (Article 47(1)(c), as last amended by GEO 8/2026). Revenue of linked enterprises is added up where a shareholder or company holds more than 25% (Article 47(1^1)).
• Exceeding the ceiling during the year. A micro-enterprise whose revenue exceeds EUR 100,000 during the year pays profit tax from the quarter in which the ceiling was exceeded (Article 52(1)). Under GEO 8/2026, this calculation applies from the first quarter of 2026.
• Other conditions remain. The company must have at least one employee (Article 47(1)(g); a full-time employment contract, combined part-time contracts adding up to a full-time equivalent, or a management or mandate contract paid at least at the gross minimum wage, under Article 51(4)); shareholders holding more than 25% may designate only one company to apply the regime (Article 47(1)(h)); the annual financial statements must have been filed on time (Article 47(1)(i)); and certain sectors are excluded, such as banking, insurance, capital markets, gambling and oil and gas exploration (Article 47(3)).

Companies that no longer qualify pay profit tax at the standard rate. A group with several companies held by the same shareholders should check the linked-enterprise rules before relying on the regime in any of them.

Health contribution (CASS): what changed for individuals

The CASS rate is 10% (Article 156). The changes concern the base:

• Independent activities. For individuals with income from independent activities, the annual base is the net income, capped at 72 gross minimum monthly wages (Article 170(1)).
• Investment and other income. For dividends, interest, rental and other income listed in Article 155(1)(c) to (h), CASS is due if the total reaches at least 6 gross minimum wages, at a flat base of 6, 12 or 24 minimum wages depending on the band (Article 170(2) and (3)).
• Pensions. Since 1 August 2025, pension income above 3,000 lei per month is subject to CASS. The base is the pension minus 3,000 lei, for each pension entitlement (Article 157^6, introduced by Law 141/2025). Pensions up to 3,000 lei per month remain exempt (Article 154(1)(h^2)).

The gross minimum wage, which drives these bases, was raised to 4,325 lei from 1 July 2026 by Government Decision no. 146/2026; until then it was 4,050 lei. Which value applies to a given year's contribution is set by the Fiscal Code rules on the reference minimum wage, and it should be checked in each declaration.

Local taxes on buildings

Law 239/2025 amended the local tax rules from 1 January 2026. The rate of building tax set by each local council for 2026 may not be lower than the rate it set for 2025 (Article 457(1^1) for residential buildings of individuals and Article 458(2) for non-residential buildings of individuals). For residential buildings owned by individuals, the rate remains within a band of 0.08% to 0.2% of the taxable value, and for non-residential buildings between 0.2% and 1.3%. Law 239/2025, as amended by GEO 78/2025, also provides further changes to the building tax for legal entities from 1 January 2027.

Because local councils set the actual rates, the amount payable depends on the municipality. Owners of several properties should check each local council's decision for the year.

What to do now

Companies:

Individuals:

When to get legal advice

Before a dividend distribution, before choosing or leaving the micro-enterprise regime, when restructuring a group, or when ANAF questions how a rate was applied. Tax rules have changed several times in a short period, and transitional provisions decide many cases. Our practice advises companies and individuals on the legal side of these changes and can coordinate with their accountants and tax advisers.

This article is general information on the law as at the date stated above and does not replace advice on a specific case. Write to us at