TAX THRESHOLDS AND CHANGES FOR 2026 (ROMANIA)
The year 2026 is characterized by a large-scale wave of legislative reforms in Romania, significantly impacting the tax system, the business environment, taxpayers, and local public administration authorities.
The new regulations stem from the fiscal package adopted at the end of 2025, as well as from other
legislative acts aimed at:
- Budget consolidation;
- Increasing tax collection efficiency;
- Aligning national legislation with European standards.
TAX REFORM AND BUDGETARY CONSOLIDATION
One of the most important legislative packages entering into force in 2026 is Package 2 of Tax Measures, which introduces substantial amendments to:
- The Tax Code;
- The Tax Procedure Code.
1. Key Changes
1.1. Increase in the dividend tax
- The tax rate is increased from 10% to 16%
applicable to both individuals and legal entities for income obtained starting 1 January 2026.
1.2. Higher taxation of investment income
- Increased taxation applies to:
- capital gains;
- income derived from cryptocurrency investments, with adjusted rates compared to previous levels.
1.3. Expansion of the local tax base
- Adjustments are introduced to local taxes on:
- buildings;
- land;
- vehicles.
These changes may result in higher local tax liabilities.
- Stricter tax compliance and sanctions
Enhanced compliance requirements and stricter sanctioning mechanisms are introduced for failure to comply with the new regulations.
These measures were approved by the competent authorities in the context of reducing the budget deficit and improving tax revenue collection.
2. Taxation Regime for Microenterprises and Large Companies
Starting in 2026, significant changes are introduced to the taxation of commercial companies.
2.1. Microenterprise Taxation
- Abolition of the 3% tax rate
The single tax rate of 1% on gross turnover is maintained for companies with an annual turnover of up to EUR 100 000.
- Current simplified taxation scheme
The existing scheme applies as follows:
- 1% tax on gross turnover;
- annual threshold of EUR 100 000.
- Removal of activity-type restrictions
As of January 2026, there are no restrictions on the types of activities eligible for the simplified taxation scheme.
2.2. Conditions for Maintaining Microenterprise Status
(unchanged)
- Limitation on ownership of microenterprises
The assessment is based on direct ownership:
- if the participation of the same shareholder in a second and/or third company exceeds 25%,
such companies lose microenterprise status;
- in this case, the 16% corporate income tax applies.
- Timely submission of financial statements
A company cannot maintain microenterprise status if financial statements are not filed on time.
This is a compliance measure, not an abuse.
- Consideration of related enterprises when calculating the threshold
If a microenterprise is in special relationships with other Romanian legal entities, classified
as “related enterprises” under Law No. 346 / 2004, the:
- turnover threshold must be verified based on the aggregate income of all related enterprises.
- Employment requirement
At least one full-time employee (8 hours per day) is required.
2.3. Reduction and Elimination of Certain Taxes
- Minimum Turnover Tax (IMCA)
- reduced from 1% to 0.5% starting in 2026;
- full elimination planned for 2027.
- Phased elimination of additional taxes
By 2027, the following taxes will be phased out:
- tax on special constructions;
- dditional turnover tax in the oil and natural gas sectors.
These measures aim to simplify the tax framework and stimulate investment in the economy.
3. New Requirements for Companies and Tax Compliance
From 2026, the applicable legislation introduces the following requirements for commercial companies:
- Minimum share capital for SRL
Set at RON 500 for new registrations.
- Bank accounts and financial reporting Companies are required to:
- maintain a payment bank account in Romania;
- keep this account throughout the entire period of activity;
- comply with enhanced financial reporting obligations.
- Expanded grounds for fiscal inactivity status
Failure to comply with reporting obligations may lead to:
- legal consequences;
- operational restrictions;
- tax-related sanctions.
These provisions aim to increase tax transparency and protect creditors and the overall business environment.
CONSULTATIONS
For details related to:
- specific business activities;
- individual company structures;
- taxation specifics in Romania.
Please contact us, and we will prepare and deliver a consultation tailored to your individual request.
Contact us for more information about these services:
Phone: +40 733 255 999 +40 724 282 227 (Telegram / WhatsApp)
E-mail: info@larinconsult.com | larin.office@gmail.com
