Romania Implements Fiscal Changes Effective March 1, 2026

On March 1, 2026, Romania enacted significant fiscal amendments through Government Emergency Ordinance No. 8/2026 (OUG 8/2026), introducing measures aimed at clarifying tax calculations, reducing interpretational inconsistencies, tightening compliance, and providing targeted investment incentives.

Key Fiscal Amendments

• Minimum Turnover Tax (IMCA): The ordinance clarifies the comparative mechanism between corporate income tax and IMCA, limiting certain deductions and defining the formula more strictly. This reform increases predictability but reduces optimization flexibility for companies near minimum tax thresholds.
• VAT at Collection – Extended Applicability: More small and medium-sized enterprises meeting eligibility thresholds may apply the VAT-at-collection system, meaning VAT becomes payable only upon invoice collection rather than issuance. This measure improves liquidity, particularly for businesses with extended payment terms or in sectors with delayed receivables.
• Capital Market Incentives: Companies listed or preparing to list on regulated markets can benefit from a 50% additional tax deduction on eligible listing and market-maintenance expenses. This measure encourages capital market participation and enhances tax efficiency for companies seeking financing through regulated markets.

Implications for Businesses

These fiscal changes are designed to enhance transparency and compliance within Romania's tax system while providing incentives for business growth and investment. Companies are advised to reassess their tax strategies and ensure compliance with the new regulations to optimize their fiscal positions.

In summary, the implementation of OUG 8/2026 marks a significant step in Romania's ongoing efforts to refine its fiscal policies, balancing the need for increased revenue with the promotion of economic development and investment.