Law No. 141/2025, recently published in the Official Gazette, brings significant changes in the areas of social contributions, VAT and taxes, excise duties, with a direct impact on both the business environment and individuals. These measures aim to increase budget revenues and fiscal consolidation, but come with an additional financial burden for taxpayers. Below is a structured presentation of the main changes.

1.Tax

– Additional tax for banks: credit institutions – Romanian legal entities and Romanian branches of foreign credit institutions – will pay a specific turnover tax:

• 2% for the period January 1 – June 30, 2025,
• 4% for the period July 1 – December 31, 2025,
• 4% permanent from 2026

– Tax on dividends: increases from 10% to 16% for dividends distributed to legal entities, individuals and non-residents, applicable from January 1, 2026. For dividends received on the basis of interim financial statements from 2025, the tax remains at 10%, with no recalculation on regularization

– Tax on pensions: the non-taxable ceiling is set at 3,000 lei per month, with a 10% tax on the portion above this ceiling.

– Tax on interest income: for bonds issued by Romanian companies on foreign markets, interest income is taxed at 10%.

-Tax of 10% will be due for a new category included among the categories of taxable income: income (in cash or in kind) from the disposal of ferrous/non-ferrous waste from personal assets

-Tax on gambling winnings:
– up to 10,000 lei inclusive – 4%;
– between 10.000 and 66.750 lei – 400 lei + 20% for what exceeds 10.000 lei;
– over 66.750 lei – 11.750 lei + 40% for what exceeds 66.750 lei.

2.Social Health Insurance Contribution (CASS)

-New categories of CASS taxpayers are introduced: recipients of accommodation allowance (adoption), child-raising allowance, those with rights granted by special laws, people receiving social assistance (minimum inclusion income), unemployment benefit or other social protection rights.

-Pensioners: for pension incomes exceeding the ceiling of 3,000 lei per month, CASS is due.

-The possibility of co-insurance for dependants of employees (spouse, spouse, adult children, parents) is abolished. Co-insured status ceases on September 1, 2025, unless they opt for co-insurance under the new rules.

-There is the possibility of voluntary CASS insurance with payment in two installments: 25% when filing the declaration and 75% by May 25 of the following year.

3.VAT and excise duties

– The standard VAT rate increases from 19% to 21%,

– The reduced rate rises from 9% to 11%.

-The 5% fee is completely abolished.

-VAT exemption for supplies and services to hospitals through NGOs is abolished.

-Until July 31, 2026, a reduced rate of 9% for a single residence, if the conditions are cumulatively met:

• a useful surface area of max. 120 square meters (without outbuildings);
• up to 600.000 lei (VAT excluded);
• purchased by individuals, individually or jointly, who have entered into legal acts between July 3 and July 31, 2025 for the payment of a down payment of at least 20% paid by August 1, 2025.
• The reduced rate has not been applied for housing purchased from 01.01.2023
• It is habitable as such.

Excise duty increases on alcohol, tobacco and fuel. Annex with the new values here.

4.Other changes

-Temporary incapacity benefits are reduced for common illnesses and off-the-job accidents as follows:
– 55% of the calculation basis – up to 7 days,
– 65% of the calculation basis – 8-14 days,
– 75% of the calculation basis – more than 15 days.
-For incapacity due to cardiovascular disease, the benefit is 75%.

-Increase in the price of the rovinieta: from September 1, 2025. For example, for a personal car, it will rise to €50/year, and the fines for not having a rovinieta will increase: from 500 to 1,000 lei.

– Changes are introduced in the area of salaries of staff paid from public funds and in the education system, aimed at streamlining expenditure and optimizing the structure of institutions.

5.Conclusion

Law 141/2025 marks a profound change in Romania’s fiscal-budgetary policy, with a direct impact on the economic and social environment. The tax increases and the broadening of the taxpayer base are aimed at strengthening the state budget, but these measures will require a rapid adaptation on the part of both companies and individuals.

If you want to read more about this year’s legislative changes, you can find other articles on our blog.