Fiscal Legislative Changes 2025: The year 2025 brings significant tax changes that affect both individuals and companies. The changes in tax legislation aim to align with current economic requirements, simplify administrative processes and increase transparency. This article provides you with an overview of the main tax legislative changes in 2025 and their impact on taxpayers.

1. Income Tax and Social Contributions

1.1. Updated Income Tax Thresholds

In 2025, the thresholds for income taxation were updated to reflect rising inflation and economic developments:

  • Monthly incomes below 3,500 lei are tax exempt, increasing from 3,000 lei in 2024.
  • Income exceeding this threshold is taxed progressively, with rates ranging between 10% and 25%, depending on the income brackets.

1.2. Modified Social Contributions

  • The health contribution (CASS) remains at 10%, but now also applies to certain categories of previously exempt income, such as dividends below the minimum ceiling.
  • The pension contribution (CAS) was maintained at 25%, with the possibility for authorized individuals to contribute additionally to obtain extended retirement benefits.

2. Changes for Microenterprises

Tax legislation for microenterprises has undergone important changes:

  • The maximum ceiling for classification as a micro-enterprise has been reduced to 300,000 euros in annual turnover, compared to 500,000 euros previously.
  • The obligation is introduced that at least 80% of the microenterprise's income must come from specific economic activities declared in the main object of activity.

Tax Rate

  • The income tax for microenterprises remains at 1%, but on condition that at least one full-time employee is employed. In the absence of one, the rate increases to 3%.

3. VAT: Essential Changes

3.1. VAT Registration Thresholds

  • The VAT registration threshold has been reduced to 80,000 lei, compared to 100,000 lei previously, which means that more small businesses will be required to collect and pay VAT.

3.2. VAT Regime for Goods and Services

  • The application of the reduced rate of 5% for educational and medical services provided by private entities is extended.
  • The standard VAT rate remains 19%, but the authorities have introduced an additional obligation for detailed invoice reporting through the e-Invoice system.

4. Digitalization and Automation of Tax Processes

The year 2025 marks an acceleration of the digitalization of tax processes:

  • The e-Invoice system becomes mandatory for all transactions between legal entities, eliminating invoices issued on paper.
  • PLACING The RO e-Transport system for real-time monitoring of high tax risk goods transports.
  • The Single Declaration benefits from a simplified format, with automatic completion of sections based on data previously reported by employers or third parties.

5. Taxation of Dividends

In 2025, the tax on DIVIDENDS increased from 5% to 8%, a measure intended to align the Romanian tax regime with that of other European states. Taxpayers should be aware of:

  • Exceeding the ceiling of 36,000 lei annually, which also entails the obligation to pay the health contribution (CASS).
  • Declaration and payment of dividend tax by the 25th of the month following the distribution.

6. Changes for Authorized Natural Persons (ANP)

6.1. Thresholds and Contributions

  • The income ceiling for taxation in the real system was reduced to 50,000 lei.
  • PFAs that exceed this ceiling are required to register as VAT payers and keep double-entry accounting records.

6.2. Taxation on Income from Independent Activities

  • Income from self-employment is taxed progressively, with rates of 10%, 15% and 20%, depending on the total value of annual income.

7. New Obligations for Employers

Employers must comply with additional rules:

  • Declaration D112 includes new fields for reporting employee benefits, such as bonuses and premiums.
  • Introducing the obligation to provide employees with access to meal vouchers in electronic format, gradually eliminating paper versions.

8. Increased Penalties for Non-Compliance with Tax Obligations

Fines for late tax payments or for failing to declare income correctly have been increased. For example:

  • Failure to declare VAT now attracts a minimum fine of 10,000 lei.
  • Companies that do not implement the e-Invoice system risk having their tax code suspended.

9. Building and Property Tax

In 2025, the building tax is adjusted to better reflect the market value of properties:

  • Residential buildings are taxed at 0.2% of the market value, and non-residential ones at 0.5%.
  • The valuation of buildings must be updated every 5 years to avoid the application of maximum tax rates.

10. Support for Green Companies

Companies that invest in environmentally friendly technologies benefit from extensive tax deductions:

  • Accelerated depreciation for equipment that reduces energy consumption.
  • 50% reductions for corporate tax in the first three years of operation of the investment.

Conclusion

The tax legislative changes in 2025 bring both challenges and opportunities for taxpayers. Whether you are an entrepreneur, PFA or individual, it is essential to stay up to date with the new regulations to avoid penalties and benefit from the available tax facilities.

If you need assistance understanding and implementing these changes, our team at Accounting One from Brașov is here to help you. Contact us for personalized accounting and tax consulting services!