As of July 2024, Romania has implemented a series of significant tax changes aimed at updating its fiscal framework. These changes include modifications to corporate taxes, VAT rates, income tax exemptions, and the introduction of special taxes on high-value assets.

Turnover and Corporate Tax

Romania introduced a minimum turnover tax, which affects both financial and non-financial companies:

• Non-financial companies are subject to a 1% tax on turnover.
• Financial institutions are taxed at a rate of 2%.

Microenterprises face new tax rates based on their annual turnover:

• A 1% tax rate applies to microenterprises with a turnover below RON 300,000, excluding certain sectors like IT and hospitality.
• A 3% tax rate applies to microenterprises with a turnover between RON 300,000 and RON 2.5 million, including those in IT, hospitality, legal, and medical services.

Income Tax and Social Contributions

Changes to income tax and social contributions include:

• The income tax exemption for IT employees is capped at RON 10,000 per month and is valid until December 31, 2028.
• Exemptions for employees in IT, construction, agriculture, and food industries now apply only to a single employer and contract.
• The health fund contribution rate is adjusted for contributions to Pillar II pensions.
• The health insurance contribution exemption for construction, agriculture, and food industry employees has been abolished.
• The tax rate on unidentified income sources has been increased from 16% to 70%.

VAT Adjustments

VAT changes include:

• The VAT rate for homes priced up to RON 600,000 and renewable energy installations has been increased from 5% to 9%.
• Contracts signed in 2023 with advances paid retain the 5% VAT rate for deliveries made in 2024.

Special Taxes on High-Value Assets

New special taxes are imposed on high-value assets:

• A 0.3% tax applies to residential properties valued over RON 2.5 million.
• A 0.3% tax applies to cars valued over RON 375,000, payable for five years starting from the delivery year.

Electronic Invoicing

Starting January 1, 2024, electronic invoicing (E-invoice) is mandatory for all goods and services delivered in Romania. Invoices must be transmitted within five working days of issuance. Penalties are enforced after a grace period ending on March 31, 2024.

Fines and Cash Transaction Limits

New regulations include increased fines for non-compliance with fiscal machine use and revised cash transaction limits:

• Cash receipts and payments between economic operators are limited to RON 1,000 per person and RON 2,000 per day.
• Cash payments to cash-and-carry stores are capped at RON 2,000 per day.
• The maximum cash register limit per location is set at RON 50,000.
• Cash transactions between individuals are capped at RON 10,000 per transaction until December 31, 2024, reducing to RON 5,000 from January 1, 2025.

These changes reflect Romania’s efforts to modernize its tax system, enhance compliance, and increase revenue collection while addressing specific industry needs and economic conditions​.