July 2025 – On 25 July 2025, the Romanian Parliament adopted Law 141/2025 regulating a series of important fiscal changes that will enter into force starting August 2025, as summarised below.
⇒ Increase of the dividend tax from 10% to 16% for all taxpayers obtaining income from dividends, i.e., companies, individuals, and non-residents. The increased tax applies to dividends distributed starting 1 January 2026. Certain transitory rules will apply to dividends distributed based on interim financial statements prepared during 2025 (or a modified fiscal year starting in 2025).
⇒ Increase of the supplementary turnover tax for credit institutions (including banks) as follows:
- from 2% to 4% for the period 1 July 2025 – 31 December 2025;
- from 1% to 4% for the period 1 January 2026 – 31 December 2026.
Credit institutions—Romanian legal entities and Romanian branches of foreign credit institutions—holding a market share of less than 0.2% of the total net assets of the Romanian banking sector, will continue to apply a 2% turnover tax for the entire period 1 July 2025–31 December 2026.
⇒ The income tax for gambling income will increase.
⇒ The standard VAT rate will increase from 19% to 21%.
⇒ The 9% reduced VAT rate will increase to 11%. Additionally, the list of supplies for which this reduced rate applies will be updated as follows:
- removal – certain qualifying dwellings (i.e., under 120 sqm / RON 600,000) supplied to private individuals (transitory rules will apply);
- removal – veterinary medicinal products;
- removal – food supplements, sweet bread, biscuits, and bee feed;
- introduction – supplies previously subject to the 5% VAT rate (e.g., school books; granting access to castles, museums, zoos and botanical gardens; firewood and thermic energy during the cold season);
- removal – photovoltaic panels, solar thermal panels, heat pumps, and other high-efficiency heating systems supplied to private consumers or to public bodies;
- removal – services consisting in granting access to fairs, amusement parks, cinemas, recreational parks, and sporting events.
Removal of the reduced rate of 5% starting 1 August 2025 – starting this date, the reduced VAT rate of 11% will apply to all supplies that previously fell under the 5% VAT rate.
⇒ Increase in excise duties on alcohol, cigarettes, and energy products (petrol, diesel, gas) starting 1 August 2025.
⇒ The following categories of individuals will need to pay health insurance contributions (optionally or mandatorily) to be insured in the public healthcare system (the list is not exhaustive):
- Optional – the spouse and parents without their own income who are dependents of an insured person; otherwise, they are uninsured.
- Optional – non-oncological patients with diseases included in the national health programs established by the Ministry of Health (certain transitory rules apply); otherwise, they are uninsured.
- Mandatory – pensioners with pensions above RON 3,000 (this rule applies until 31 December 2027);
- Mandatory – persons who are on parental leave;
- Mandatory – individuals receiving unemployment benefits.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
