Introduction
On December 31, 2024, Emergency Ordinance no. 156/2024 was published in the Official Gazette, bringing notable changes to Romania's fiscal framework for 2025. These measures aim to enhance budgetary stability and introduce updates to taxation policies affecting businesses and individuals.
Key Fiscal Updates
The ordinance increases the tax on dividend income from 8% to 10%, effective for payments made from dividends distributed after January 1, 2025. Special provisions allow companies with non-calendar fiscal years to apply the new rate at the start of their fiscal year in 2025. Dividends distributed based on interim financial statements for 2024 will remain taxed at the 8% rate.
For micro-enterprises, the income threshold decreases to €250,000 in 2025 and will further reduce to €100,000 from 2026. Additionally, businesses earning revenue from consulting and management are no longer limited by the 20% cap to qualify as micro-enterprises, simplifying eligibility criteria.
Tax exemptions previously granted to employees in IT, construction, agriculture, and food sectors will no longer apply starting in January 2025. The minimum gross salary will rise to 4,050 lei per month, with employees earning below 4,300 lei benefiting from a 300 lei exemption on social contributions and income tax.
The ordinance also reinstates the 1% construction tax, applicable to certain buildings. This tax will be calculated based on the value of assets recorded as of December 31 of the preceding year and paid in two installments, by June 30 and October 31.
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.
