Romania's Ministry of Finance has issued a draft order requiring entities under Law 431/2023 to disclose deferred tax calculations based on IAS 12 principles in explanatory notes, while offering an optional transition to IFRS-compliant regulations (OMFP 2844/2016) starting with the 2025 financial year, with formal adoption required from 2026 for those who opt in.
Romania’s Ministry of Finance has issued a draft order on 9 February 2026 detailing how constituent entities subject to Law 431/2023 should account for deferred tax under the Minimum Taxation Directive (2022/2523).
Entities applying Romanian accounting regulations (OMFP 1802/2014)
This draft ministerial order establishes specific accounting guidelines for Romanian entities subject to the global minimum tax framework under Law 431/2023. It requires organisations that follow national reporting standards to disclose deferred tax calculations in their explanatory notes, based on IAS 12 principles, without recording them in the formal ledger.
Instead, they must present the information in the explanatory notes to their annual financial statements.
The deferred tax corresponding to the current financial year’s result must be presented separately from the deferred tax related to retained earnings. The calculation is based on the difference between the carrying amount of balance sheet items (determined by OMFP 1802/2014) and their tax base.
Transition to IFRS-compliant regulations (OMFP 2844/2016)
The draft Order provides an option for constitutive entities to transition to the accounting regulations compliant with International Financial Reporting Standards (IFRS), approved by OMFP no. 2.844/2016.
Entities may opt to transition starting with the 2025 financial year if they deem they have the capacity to apply these regulations. While they can prepare 2025 statements under these rules, they must organise and conduct their formal accounting in accordance with OMFP 2844/2016, starting with the 2026 financial year.
For this transition, entities must apply IFRS principles, specifically including IFRS 1 “First-time Adoption of International Financial Reporting Standards”.
Once an entity chooses to apply OMFP 2844/2016 for deferred tax purposes under Law 431/2023, it must ensure continuity in applying these regulations for the duration of the law’s application.
If an entity is no longer subject to Law 431/2023, it stops applying the special deferred tax presentation rules starting with the financial year in which its status changed. Such entities can then choose to continue with OMFP 2844/2016 or return to OMFP 1802/2014.
These provisions generally apply to the 2025 annual financial statements. For entities with a financial year that differs from the calendar year, the rules apply from the start of the first financial year that begins after 1 January 2025.
