In the Official Gazette, Part I, No. 805 of August 29, 2025, was published the Ordinance No. 21/2025 amending and supplementing Law No. 431/2023 on ensuring a minimum global level of taxation for multinational enterprise groups and large domestic groups
The main amendments and additions to the law are as follows:
• Transferable tradable tax credit
The concept of transferable tradable tax credit is introduced, with transferability and trading standards aligned with OECD rules, with the same tax regime as qualified refundable tax credits.
• Domestic excess profit
Under the rules for determining the domestic top up tax, when constituent entities in Romania do not apply the same accounting regulations or when their financial year differs from that used in the consolidated financial statements of the multinational group, the phrase "qualified domestic top up tax”" is replaced by the phrase "domestic excess profit" to correlate with the content of that paragraph.
• Calculation of the qualified domestic top-up tax
The formula for calculating the qualified domestic top-up tax is completed by including the additional domestic top-up tax (the tax amount is determined in accordance with the provisions of Article 33 for the respective financial year), as follows:
qualified domestic top-up tax = percentage of qualified domestic top-up tax x domestic excess profit + domestic top-up tax
• Computation currency
Groups that use a currency other than the local currency (RON) may choose to determine the top-up tax in the currency in which the consolidated financial statements are presented, for a period of five years.
• Adjusted covered taxes
Rules are established regarding carrying forward expenses corresponding to negative additional taxes, which is optional and allows for a reduction in the adjusted covered taxes for a jurisdiction, depending on the balance of additional negative tax expenses carried forward in each financial year, subsequent to the one for which they were recorded, where there are qualifying profits.
• Reporting and payment obligations
The reference to the Member State in the definition of the local entity designated to file the informative statement is removed, and it is specified that the tax authority competent to receive this return is the one from Romania.
If there are several constituent entities in Romania that are part of the same group, for the first year of application (2024), the notification opting for the declaration and payment of the domestic top-up tax by a single designated entity shall be submitted within a maximum of 12 months from the last day of the reporting financial year (instead of 6 months as previously established).