New taxes starting January 1, 2025

Published on: 01 January 2025.

The year 2025 brings several tax changes to the Romanian business sector, some of which are less than favorable.

Surprisingly for the rest of the world, but sadly not shocking by Romanian standards, these amendments were proposed and adopted by the Romanian Government in less than one day, without proper discussions or consultations with representatives of the business sector.

Starting with January 1, 2025:

• The dividend tax increases from 8% to 10%.

• All tax benefits previously available to employees in the agriculture, construction, and IT sectors are eliminated.

• A special 1% tax on the book value of buildings and other infrastructure assets is introduced for companies operating in energy, agriculture, communication, and other industrial sectors.

• The 3% turnover tax will no longer apply to Romanian companies with annual incomes exceeding EUR 250,000. Starting in 2026, this threshold will be further reduced to EUR 100,000.

The good news: Management and consultancy activities are now compatible with companies benefiting from the turnover tax.