The Government adopted in December a series of tax amendments applicable from 2025, aimed at making the use of digital tax administration systems more flexible and combating tax evasion. The regulations concern the use of the national RO e-Factura system and the taxation of legal entities.
“Following consultations with representatives of the business community, we adopted a series of measures that bring greater clarity, transparency and efficiency to the tax system. In the area of digitalization, the adjustments made to the RO e-Factura, RO e-TVA and e-Transport systems will provide taxpayers with greater flexibility. We are also introducing stricter regulations regarding excise duty guarantees, as well as the obligation to pre-declare transactions involving excise goods, following control actions carried out by the General Anti-Fraud Directorate, which identified practices causing significant losses to the state budget,” said Finance Minister Marcel Boloș.
The amendments concerning the use of the national RO e-Factura system provide for the following:
- Providing the CNP for individuals is optional: a framework is being established whereby identification through the Personal Numeric Code (CNP) for individuals is optional. Thus, if the taxpayer does not wish to provide an identification code, the invoice will automatically include a code consisting of 13 zeros;
- Limiting mandatory transactions: The obligation to use the RO e-Factura system will be limited to transactions for which, from a VAT perspective, the place of supply or provision is in Romania.
- Removal of exemptions for simplified invoices: The RO e-Factura system will also be mandatory for simplified invoices, with the exception of fiscal receipts;
- CPV codes on invoices for public procurement: Invoices issued under public procurement, sectoral procurement or concession contracts will have to include the corresponding CPV codes from the public procurement nomenclature;
- The provisions concerning the use of the RO e-Factura system for invoices issued for holiday vouchers to their holders are repealed, given that all B2C invoices will be reported in the system starting from January 1, 2025.
Regarding the national RO e-TVA system, the provisions concerning taxpayers’ obligation to submit the results of the checks carried out on the discrepancies communicated by the National Agency for Fiscal Administration (ANAF) through the “RO e-TVA Compliance Notification”, as well as the related sanction for failure to comply with this obligation, are postponed until July 1, 2025.
Regarding e-Transport, the entry into force of the national e-Transport system for authorized economic operators is postponed until March 31, 2025.
Amendments to the Tax Code
Regarding corporate income tax, taxpayers subject to specific turnover taxes (credit institutions and legal entities operating in the oil sector) are exempt from the minimum turnover tax.
Regarding income tax for micro-enterprises, in order to support the development of domestic agriculture, tax-exempt income has been established to encourage the consolidation of land plots where no balancing payment is made and the activities carried out are intended for agriculture, respectively when no gain is obtained from the consolidation.
Regarding income tax, the following measures have been established:
- Regulation of the rules for calculating and declaring income tax in the case of income from the leasing of assets, paid by legal entities or other entities required to keep accounting records, where the income is paid exclusively in kind, as well as in the case of amounts representing a security deposit used to pay the rent established under the contract.
In these situations, the obligations to determine the annual net income and to calculate, declare and pay the tax rest with the owner, usufructuary or other legal holder, by filing the Single Tax Return regarding income tax and social contributions owed by individuals, by May 25 inclusive of the year following the year in which the income was earned.
The measure takes into account the fact that, in these situations, the income payer is unable to withhold the income tax at source.
- Establishment of transitional provisions clarifying the applicable tax regime, as well as the obligations to declare, calculate and pay income tax in the case of income from the leasing of assets, other than income from agricultural leases and from the tourist rental of rooms located in privately owned homes, paid by legal entities or other entities required to keep accounting records, where the rent corresponding to a contractual period subsequent to January 1, 2024, was paid in advance by December 31, 2023 inclusive.
The measure aims to ensure the uniform application of the tax regime in this situation.
- Regulation/clarification of the taxation of income obtained from the transfer of ownership rights or components of ownership rights.
The method for declaring and determining tax on income obtained from the transfer of components of ownership rights subject to a suspensive condition, following the authentication of the transfer deed, has been regulated. Thus, it is proposed that the individual receiving the income or the income payer, where the income is paid by legal entities or other entities required to keep accounting records, calculate and declare the income tax due, with the necessary rules for its calculation, declaration and payment being established.
The measure takes into account requests made by the tax authorities and the National Union of Public Notaries of Romania concerning the need to ensure sufficient and unambiguous tax rules.
- It is clarified that pension income obtained from abroad is subject to taxation by applying a 10% tax rate to the monthly taxable income, determined by deducting the monthly non-taxable amount of RON 3,000 from the pension income.
The need for these clarifications was determined by the measures concerning the taxation of pension income introduced through Law No. 282/2023 amending and supplementing certain normative acts in the field of service pensions and Law No. 227/2015 regarding the Tax Code, as subsequently amended and supplemented, and aims to facilitate taxpayers’ compliance with their tax obligations when earning such income.
Other tax measures expected in 2025
The Government also proposes measures to combat tax evasion in the field of excise goods, given that control actions carried out by the tax authorities identified cases where certain economic operators conducting activities involving excise goods evaded the payment of tax obligations to the state budget, namely:
- the introduction of obligations to declare transactions and guarantee excise duties (120%) for registered consignees and economic operators registered with the competent authority for the wholesale distribution and sale without storage of excise goods that present a high fiscal risk according to criteria established by joint order of the President of ANAF and the Romanian Customs Authority (AVR), and which hold and release for consumption excise goods from a tax warehouse belonging to a third party;
- the introduction of an obligation for registered consignees and economic operators registered with the competent authority for the wholesale distribution and sale without storage of excise goods that present a high fiscal risk and which hold and release for consumption excise goods from a tax warehouse owned by a third party, to notify the competent authority at least 3 calendar days before the quantity of excise goods stated in the declaration on their own responsibility is exhausted. Failure to submit the declaration on own responsibility and failure to guarantee the payment of excise duties are to be classified as criminal offenses;
- the introduction of a provision addressing situations in which these economic operators are no longer considered to present a high fiscal risk, namely when the competent authority determines that, during 36 consecutive months from the date of submission of the first declaration on own responsibility, the economic operator has not recorded outstanding tax obligations to the consolidated general budget of the type administered by the National Agency for Fiscal Administration;
- the introduction of exceptions to the general rules regarding the revocation of the registered consignee authorization. Thus, at the proposal of the control authorities, the competent authority revokes the authorization of a registered consignee presenting a high fiscal risk within a maximum of 3 calendar days from the date of receiving the revocation proposal, if the holder:
- a) fails to comply with the provisions concerning the 120% guarantee, submission of the declaration on own responsibility, as well as notification of the competent authority at least 3 calendar days before the quantity of excise goods stated in the declaration on own responsibility is exhausted;
- b) exceeds the quantity of excise goods stated in the declaration on own responsibility.
- the introduction of revocation provisions similar to those introduced for registered consignees presenting a high fiscal risk, also in the case of economic operators registered with the competent authority for the wholesale distribution and sale without storage of alcoholic beverages, processed tobacco and energy products that present a high fiscal risk and which hold and release for consumption excise goods from a tax warehouse belonging to a third party;
- ensuring similar treatment for economic operators producing natural gas for their own use to that applicable to operators in the electricity sector;
- including failure to comply with the obligation to make advance payment of excise duties for newly authorized operators (regulated by Government Emergency Ordinance No. 123/2024) within the scope of criminal offenses;
- introducing provisions regarding the revocation of the registered consignee authorization in cases of failure to comply with the obligation to make advance payment of excise duties.
What do these changes mean for companies?
The tax amendments adopted for 2025 have significant implications for companies, affecting both the way they manage tax compliance and their internal costs and processes.
The RO e-Factura system provides greater flexibility, allowing the identification of individuals through their CNP to be optional, simplifying the process of issuing invoices to individual customers who prefer anonymity.
In addition, limiting the mandatory application to transactions subject to Romanian VAT reduces the administrative burden for cross-border transactions or transactions involving tax exemptions. Companies supplying goods and services to the state will need to integrate CPV codes into their invoices, which will require investments in compatible IT systems. Furthermore, the removal of exemptions for holiday vouchers requires greater transparency in commercial relationships with final consumers.
The postponement of the implementation of the e-Transport system allows economic operators time until March 31, 2025, to comply with the requirements concerning the declaration and monitoring of goods transportation. This reduces the pressure associated with the rapid implementation of the new systems.
Regarding the impact of the general tax amendments, the introduction of exemptions for banks and companies in the oil sector provides them with a competitive advantage.
Through tax incentives for companies consolidating agricultural land without realizing a gain, investments in the agricultural sector are encouraged.
Companies must prioritize compliance with the new regulations, invest in efficient digital solutions and implement internal tax control mechanisms. Rapid adaptation to these changes will reduce tax risks and provide opportunities to benefit from the tax incentives offered under the new regulations.
