The Ministry of Finance has proposed legislative amendments to the Pillar Two global minimum tax and corporate income tax in the Fiscal Code.
Romania’s Ministry of Finance has recently introduced two legislative amendments: one proposes changes to the Pillar Two global minimum tax, and the other to the direct taxes outlined in the Fiscal Code (Law No. 227/2015).
The draft ordinance amending and supplementing Law No. 431/2023 implements the Pillar Two global minimum tax under Council Directive (EU) 2022/2523 of 14 December 2022. Romania’s government published Law No. 431 of 29 December 2023 in the Official Gazette on 5 January 2024.
The draft law, issued on 14 August 2025, proposes amendments to the direct taxes outlined in the Fiscal Code (Law No. 227/2015), with a focus on corporate income tax. These changes are expected to take effect on 1 January 2026.
The key provisions of the two legislative amendments are:
Draft ordinance amending and supplementing Law No. 431/2023
The draft ordinance includes refined definitions for transferable tax credits, clearer rules for pension service entities, adjustments to excess profit and tax rate calculations, and flexibility in currency use and deferred tax treatment.
Additionally, the ordinance streamlines administrative procedures, introduces optional carry-forward of negative top-up tax values, and aims to enhance compliance and reduce ambiguity in Romania’s tax framework.
Profit tax/Minimum turnover tax
The proposed amendments repeal the minimum turnover tax. However, for fixed assets deducted under this tax until 31 December 2025, taxpayers must still retain them for at least half of their economic useful life (up to 5 years), with certain exceptions. If this retention period is not met, taxpayers must recalculate the minimum turnover tax, amend and file their tax returns, and may face late payment penalties from the quarter/year when the deduction was claimed.
Special regime for affiliated entities
The proposed draft introduces a special regime for affiliated entities. The special regime disallows profit tax deductions for intellectual property, management/consulting, and interest expenses paid to affiliates if such expenses exceed 3% of total similar expenses. In this case, standard profit tax deductibility cannot be applied.
If accounting data is insufficient for comparison, 2024 records are used. As of 2027, the 3% threshold is based on the prior year’s data, applying to each fiscal group member, except banks and credit institutions, which are exempt from interest on affiliate transactions.
Investment income
The amendments increase the withholding tax on income from securities and derivatives by specialised intermediaries: from 1% to 2% for holdings exceeding 365 days, and from 3% to 4% for securities/derivatives holdings under 365 days.
