TAX CHANGES IN ROMANIA FROM 01.01.2026

MODE FOR MICROENTEPRISES

New Conditions and a Flat Rate. From January 1, 2026, Romania will maintain a preferential tax regime for microenterprises, with a rate of 1% of the turnover of companies with annual revenues of up to €100,000 (or the equivalent in RON).Regardless of the type of activity, its application is directly dependent on the fulfillment of personnel requirements.
To apply the 1% of turnover rate, a company must:

1. have an annual turnover of no more than 100,000 euros (or the equivalent in RON);
2. hire at least one employee within 30 calendar days of company registration in Romania.

The employee may be an EU citizen, and the law allows this condition to be considered fulfilled if:

• they are officially registered as an employee (and not simply a shareholder/manager without an employment contract);
• they receive remuneration;
• they pay social security contributions in Romania.

In this case, social security contributions average approximately 370 euros per month.
Therefore, a company without a traditional full-time employee can retain the 1% rate if the director is officially registered and enrolled in the Romanian social security system.

The simplified tax system has been abolished. The previously existing 3% rate for microenterprises has been abolished effective January 1, 2026. Only the 1% rate remains, simplifying the system but reducing potential benefits for high expenses. Important: The 16% corporate income tax (CIT) remains in effect for companies whose turnover exceeds €100,000 in the financial year or which do not have at least one employee.

Dividend tax. Effective January 1, 2026, the dividend tax rate has been increased from 10% to 16%. This change applies to both legal entities and individual shareholders and participants. The new rate applies to dividends distributed beginning January 1, 2026. For dividends accrued in 2025 based on interim reports, the 10% rate will remain. This significantly impacts the profit distribution strategy of companies with large shareholders or dividend policies.

OTHER CORPORATE REQUIREMENTS AND STARNDARTS

New requirements for companies and “corporate hygiene”

From January 1, additional rules were introduced aimed at increasing business transparency and responsibility. Companies are required to register tax departments with employees and comply with electronic reporting (e-Factură / e-TVA) with the new rules. The criteria for financial discipline have been strengthened: for example, a company may be declared inactive by ANAF if it fails to submit annual reports on time or does not have a bank account in Romania, which leads to the risk of liquidation under the law. New rules on loan agreements between companies and participants/shareholders, as well as on transfer prices and security for obligations. Practical effect: compliance with “corporate hygiene” becomes critical as ANAF gains the right to more strictly classify companies as inactive and require liquidation if non-compliance.

Value added tax (VAT). Although the VAT change occurred on August 1, 2025, it directly affects the calculation of the tax burden of companies in 2026: the standard VAT rate has been increased from 19% to 21%. A single reduced rate of 11% has been introduced for a number of goods/services (for example, food, medicine, books). This increase in VAT affects non-operating expenses of companies and prices of final goods/services from the beginning of 2026.

SAF-T (D406): KEY FOCUS OF TAX CONTROL

The introduction of SAF-T reporting (declaration D406), which is becoming one of the central tools of tax control in Romania, deserves special attention. SAF-T is a standardized electronic file that is transmitted to the tax authorities (ANAF) and contains detailed information about accounting records; accounts; operations; VAT and contractors. In 2026:

• the range of companies required to file D406 is expanding;
• control over the quality of data is being strengthened, and not just over the fact of reporting.

Errors in SAF-T, inconsistencies in accounting data, or formal reporting may result in inquiries from ANAF; inspections; financial sanctions.
Therefore, correct setup of accounting and IT systems for SAF-T becomes not just a formality, but a mandatory element of the company’s tax security.

CONCLUSION: WHATt COMPANIES SHOULD PAY ATTENTION TO IN 2026

In 2026, the Romanian tax system places less emphasis on increasing rates and more on structural requirements and transparency:

• the presence of an employee is the key to the 1% rate;
• an increase in the tax on dividends increases the overall tax burden;
• SAF-T (D406) requires high quality accounting data;
• formal accounting no longer works – details and correctness are important.

RECOMMENDATIONS FOR COMPANIES

• Plan profit distribution taking into account the increase in dividend tax
• Review the cost structure for services and consulting with non-resident affiliates – limiting deductions may increase the tax base.
• Assess the micro-enterprise’s eligibility for optimal use of the 1% rate.
• Ensure a full set of accounting, tax and reporting requirements (bank accounts, timely reporting) to avoid the status of an “inactive” company.
• Analyze the impact of increasing VAT and turnover fees on profit and liquidity.

IF YOU NEED TAX ADVICE, ANALYSIS OF CHANGES SINCE 01/01/2026 OR ARE LOOKING FOR RELIABLE ACCOUNTING SERVICES FOR YOUR COMPANY IN ROMANIA, WE WILL BE HAPPY TO HELP.

We undertake full accounting and tax services for companies in Romania:

• maintaining current accounting records;
• preparation and submission of financial statements;
• filing tax returns, including SAF-T (D406);
• support of interaction with ANAF.

Contact us for professional accounting support and tax support – we will help you set up your accounting correctly and without risks.

Contact us at the contacts below to receive individual advice and professional support for your business in Romania.