On July 25, 2025, Romanian Law No. 141/2025 On Certain Fiscal-Budgetary Measures (“Law 141/2025”) was published in the Romanian Official Gazette, Part I and entered into force on July 28, 2025.

Law 141/2025 introduces significant amendments to Law No. 227/2015 On the Romanian Fiscal Code, to Law No. 95/2006 On Health Reform, and to Government Ordinance No. 158/2005 On Leaves and Social Health Insurance Allowances.

Please find below the key fiscal changes enacted by Law 141/2025 which came into force on August 1, 2025.

      I.Dividend tax

For dividends distributed on January 1, 2026 and beyond, the dividend tax rate increases from 10% to 16% for all taxpayers obtaining income from dividends. In the case of dividends distributed based on interim financial statements prepared for the year 2025, the dividend tax rate is 10%.

     II. Interest income tax

For bonds issued by Romanian legal entities, on foreign capital markets, the interest paid by the issuing legal entity and registered in the issuer’s accounting records during the fiscal year is subject to a tax of 10%. The interest income taxed at 10% is calculated and declared directly by the taxpayer and reported through the single declaration form.

      III. Additional turnover tax

The turnover tax applicable to credit institutions, including banks, is modified as follows:

  • for the period July 1, 2025 – December 31, 2025: 4%, increased from 2%;
  • for the period January 1, 2026 – December 31, 2026: 4%, increased from 1%.

      IV. Changes to VAT rates

Two new VAT thresholds are introduced, namely:

  • A new standard VAT rate of 21%, increased from 19%;
  • A new reduced VAT rate of 11%, applicable only in certain cases expressly determined under the Romanian Fiscal Code, replacing the current 5% and 9% VAT rates.

According to Law 141/2025, the 11% VAT rate is levied on specific cases, including, as follows:

  • the supply of medicines for human use;
  • the supply of food and beverages without sugar or alcohol;
  • the supply of drinking water and sewage;
  • the supply of irrigation water used in agriculture;
  • the supply of fertilizers and pesticides used in agriculture;
  • the supply of school textbooks, books, and newspapers;
  • services giving access to castles, museums, monuments;
  • the supply of thermal energy to the population;
  • hotel accommodation and camping;
  • restaurant and catering services, excluding alcoholic beverages or sugary juices

       V. Excise duties

As per Annex 1 of Title VIII of the Romanian Fiscal Code “Excise duties and other special taxes”, excise duties on several categories of products such as on fuel, alcohol, tobacco, and non-alcoholic beverages with added sugar are increased. The level of excise duties will further increase as of 2026.

    VI. Gambling income taxation

The tax rates for gambling income are increased, as follows:

  • for gross gambling income of up to RON 10,000 (approximately EUR 2,000): 4% tax rate;
  • for gross gambling income between RON 10,000-66,750 (approximately EUR 2,000-13,350): 20% tax rate for amounts exceeding RON 10,000;
  • for gross gambling income exceeding RON 66,750 (approximately EUR 13,350): 40% tax rate for amounts exceeding RON 66,750.

   VII. Medical leave allowance

In regards to social security contributions, the monthly gross amount of the allowance for medical leave granted for common illness or accidents outside of work will be established for each sick leave episode, as follows:

  •    for sick leave medical certificates with a duration of at most 7 days: 55% of the base calculation;
  •   for sick leave medical certificates with a duration of 8-14 days: 65% of the base calculation;
  •   for sick leave medical certificates with a duration exceeding 15 days: 75% of the base calculation.

However, for cardiovascular diseases, the granted monthly gross amount of the allowance for medical leave is 75% of the base calculation, irrespective of its actual duration.

 VIII. Health insurance contribution

The following categories are no longer exempt from paying the health insurance contribution:

  • Co-insured individuals who do not earn any income. However, individuals who are already paying the health insurance contribution have the possibility to pay the health contribution for the dependent thereto (i.e., spouse or parent without income) at the equivalent of 10% of 6 gross minimum gross wages, in force on January 1 of each year, for each co-insured individual for whom the option was exercised (i.e., for the year 2025, the amount of the contribution payable for each co-insured individual is RON 2,430 – approximately EUR 486). As of September 1, 2025, currently co-insured individuals will no longer be insured in the health insurance system, unless the above-mentioned payment mechanism is opted for;
  • Individuals under a special protection regime pursuant to laws providing for the protection and preservation of their rights, for sums received under such special laws;
  • Patients with conditions included in national health programmes established by the Ministry of Health, until the condition is cured, except for patients with oncological conditions, under Law 293/2022 On Preventing and Combating Cancer;
  • Individuals on accommodation leave under Law No. 273/2004 On the Adoption Procedure, as well as individuals receiving child-raising allowance under Government Ordinance 111/2010 On Parental Leave;
  • Individuals receiving unemployment benefits or other social protection rights, as the case may be, from the unemployment budget;
  • Individuals receiving social aid under Law No. 416/2001 On the Minimum Guaranteed Income;
  • Individuals receiving minimum income support under Law No. 196/2016 On Minimum Inclusion Income;
  • Individuals who are pensioners, for the part of the monthly pension income exceeding RON 3,000 (approximately EUR 600), applicable only for the pension income received between August 1, 2025 and December 31, 2027.

We remain at your disposal to provide more information and/or related legal assistance connected to this topic.

 

 

 

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