On 27 October 2023, Romania published Law No. 296/2023 in the Official Gazette. The law includes fiscal and budgetary measures aimed at securing the long-term financial sustainability of Romania.

Starting from 1 November 2023, a standardized tax treatment applies to employees in the IT, construction, agriculture, and agri-food sectors. The key changes are:

• Tax exemption for gross salaries up to Lei 10,000, with amounts above the threshold subject to full taxation.
• 25% pension fund contribution, with a deduction for the private pension fund contribution (increasing to 4.75% in 2024).
• A 10% health insurance contribution.
• A 2.25% work insurance contribution, or a different rate for special conditions.

Starting from 1 January 2024, summary of Fiscal Changes is following:

a) Minimum Corporate Income Tax for Large Companies:

1. • A minimum tax of 1% on turnover is imposed on companies with a turnover exceeding EUR 50 million in the previous fiscal year.
   • If the minimum tax is negative, it is considered as zero.
   • The comparison is made based on the cumulated corporate tax after specific deductions but without external tax credits or tax exemptions on reinvested profit.
   • Rules are introduced for taxpayers using the annual system with advance payments and for members of fiscal groups.

b) Credit institutions in Romania and foreign credit institution branches are subject to an additional tax of 2% (until 31 December 2025) and 1% (starting 1 January 2026) on their turnover, in addition to regular profit tax.

c) Companies engaged in the oil and gas sectors with a turnover exceeding EUR 50 million in the previous year are required to pay an additional tax on their turnover.

These changes aim to increase tax revenue from large corporations, credit institutions, and significant players in the oil and gas industry and may have various implications for affected businesses.