Tax Flash nr. 120

In the Official Gazette, Part I No. 699 of July 25, 2025, Law No. 141/2025 on fiscal and budgetary measures was published. Through the Law No. 141/2025 are introduced important amendments on the Fiscal Code and other normative acts:
Relevant amendments to Law No. 227/2015 on the Fiscal Code:

  1. TAX ON INCOME FROM DIVIDENDS
The tax rate for dividend income, as well as for gains obtained from holding securities in collective investment undertakings, increases from 10% to 16%. The rate change applies to dividends distributed starting January 1, 2026, for all beneficiaries (Romanian or foreign individuals, Romanian or foreign legal entities).
For dividends distributed during 2025, based on interim financial statements, the tax rate of 10% applies. This tax is not recalculated after the adjustment of dividends based on the annual financial statements for the 2025 financial year/modified tax year beginning in 2025.
  1. ADDITIONAL TAX FOR CREDIT INSTITUTIONS
The fiscal amendments refer to:
  • increase of the tax rate from 2% to 4% starting 1 July 2025. The increased rate to 4% applies to turnover achieved starting from July 1, 2025, with the exception of credit institutions with a market share of less than 0.2% of the total net assets of the banking sector;
  • introduction of new rules for the calculation of the additional tax. If during the period 1 July 2025 - 31 December 2025 inclusive, operations are carried out that determine the increase/decrease of the elements that were taken into account in the calculation of the turnover corresponding to the first semester, the turnover tax for this period is recalculated, by submitting a rectifying return. The errors found that are corrected on the basis of the retained earnings, for the elements of the turnover corresponding to previous fiscal years, are taken into account in the calculation of the turnover of the year for which the error is found, by submitting a rectifying return.
  1. INCOME TAX
  1. Tax on interest income
Interest earned by individuals who are tax residents in Romania from bonds issued by Romanian legal entities and traded on capital markets outside Romania will no longer be taxed by withholding tax by the payer. The tax will be calculated and paid by the individual by completing and submitting the single tax return. The tax rate remains 10%. 
This provision applies to income paid by the issuing company and recorded in the individual's account starting August 1, 2025.
  1. Tax on pension income
Given the introduction of the health insurance contribution for pension income (both from the public system – Pillar I, and from the private system – Pillars II and III) above the monthly ceiling of 3,000 lei, it should be noted that the CASS paid will be deducted when calculating the tax on pension income within the limits of taxable income. This provision applies starting with pension income for August 2025.
  1. Income from gambling
Tax thresholds and rates are changed as follows:
Gross income range -lei-  Tax – before August 1, 2025 Tax – after August 1, 2025
Up to 10.000 3% 4%
10.001 – 66.750 300 lei + 20% of the amount exceeding 10.000 400 lei + 20% of the amount exceeding10.000
Over 66.750 11.650 lei + 40% of the amount exceeding 66.750 11.750 lei + 40% of the amount exceeding 66.750

This provision applies to income paid starting August 1, 2025.
  1.  Tax on income from other sources
Income obtained from the sale of ferrous and non-ferrous metals and their alloys from personal assets is included in the category of income from other sources.
This provision will enter into force on August 1, 2025.
  1. HEALTH INSURANCE CONTRIBUTION
The provisions of the Tax Code relating to the status of insured persons without payment of contributions for the following categories of persons are repealed:
  • individuals dependent on an insured person, namely spouses/parents without their own income;
  • individuals whose gross pension income exceeds 3,000 lei/month;
  • certain individuals whose financial rights are established by law (e.g., individuals persecuted for political reasons by the communist dictatorship, veterans, disabled individuals, and war widows);
  • individuals receiving unemployment benefits or, where applicable, other social protection rights granted from the unemployment insurance budget, in accordance with the law, for these financial rights;
  • individuals on accommodation leave or parental leave;
  • individuals receiving the minimum inclusion income;
  • monastic personnel of recognized religions, registered with the Secretary of State for Religions;
  • patients included in national health programs established by the Ministry of Health, who receive medical services, related services, medicines, medical supplies, medical devices, and the like, as applicable, provided under the national health program of which they are beneficiaries, as well as the medical services on which their provision is based, until the respective condition is cured, with the exception of patients with oncological conditions.
Individuals may opt to pay health insurance contributions for their spouse/parents without their own income by submitting a Unique Declaration, with the contribution being determined by applying a rate of 10% to the value of 6 minimum gross salaries in force on January 1st of the year in which the option is exercised. The health insurance contribution payment is made in two installments, as follows:
  • 25% on the date of submission of the declaration exercising the option;
  • 75% by May 25th, inclusive, of the year following the year in which the option was exercised.

The new payment deadlines apply to all taxpayers who opt to pay health insurance contributions (CASS) after August 1st, 2025 (individuals who start an activity during the year, those who earn income below the threshold, etc.). For individuals who have opted to pay the health insurance contribution by July 31, 2025 (inclusive), the payment deadline remains the one in effect at the time the option was exercised, namely May 25, 2026.
Individuals who receive income from pensions will be exempt from paying the health insurance contribution on pension income starting January 1st, 2028.
All these changes come into effect starting August 1st, 2025. However, as a transitional provision, the insured status will cease as of September 1st, 2025, unless the co-insured person voluntarily acquires it (by submitting the Unique Declaration) by that date.
  1. VAT
Please find below the main changes, with effect from August 1, 2025:
  • Increase of the standard rate from 19% to 21%;
  • Elimination of the reduced rates of 5% and 9%;
  • Introduction of a single reduced rate of 11% for a narrower range of goods and services among those for which the two reduced rates currently apply (9% and 5%, respectively);
  • Elimination of tax exemptions for operations carried out by non-profit entities and companies wholly owned by them regarding construction, rehabilitation, modernization services of hospital units, as well as deliveries of medical equipment, etc. intended for use in the field of healthcare or for use by disabled persons.
  1. EXCISES
Amendments are being made to the level of excise duties, by increasing the excise duty for certain products starting with August 1, 2025.

Relevant amendments to Government Emergency Ordinance No. 158/2005 on sick leave and health insurance benefits
The amount of sick leave benefits for common illnesses is determined by applying a differentiated percentage, depending on the total number of sick leave days granted for each episode of illness, as follows:
  • by applying a percentage of 55% to the calculation basis for sick leave certificates issued for a period of up to 7 days of temporary incapacity for work;
  • by applying a percentage of 65% to the calculation basis established for sick leave certificates issued for a period of between 8 and 14 days of temporary incapacity for work;
  • by applying a percentage of 75% to the calculation basis for sick leave certificates issued for a period of more than 15 days of temporary incapacity for work;


The gross monthly amount of the temporary incapacity for work allowance for certain cardiovascular diseases remains at the current level of 75% of the calculation basis.

The new method of determining allowances will come into force on August 1st, 2025. However, for sick leave certificates issued during an episode of illness for which the initial sick leave certificates were issued before the date of entry into force of the Law, the legal provisions in force on the date of issue of the initial sick leave certificates shall apply.