Emergency Ordinance 156/2024: Romania’s Comprehensive Tax Reform Impact

Emergency Ordinance 156/2024 transforms Romania’s tax landscape. Analyze key changes affecting Romanian companies in 2025-2026.

Emergency Ordinance no. 156/2024 initiated Romania’s most comprehensive tax system modernization, addressing budget deficit concerns while supporting business environment development[1][2]. The legislation impacts virtually every aspect of corporate taxation.

Major Reform Components

Immediate Changes (August 2025):

• VAT rate increases from 19% to 21%
• Reduced VAT rates unified to 11% (from 5% and 9%)
• Banking turnover tax increases to 4%[
• Enhanced digital compliance requirements

2026 Implementation:

• Dividend tax increase to 16%
• Continued banking sector changes
• Full electronic invoicing mandate

Business Strategy Implications

Financial Planning Adjustments:

• Cash flow projections incorporating new tax rates
• Pricing strategy reviews for VAT increases
• Investment timing considerations for tax optimization
• System upgrade budgeting for digital compliance

Compliance Priority Matrix

1. Immediate (August 2025): VAT rate changes and banking taxes
2. Short-term (Q4 2025): Electronic invoicing preparation
3. Medium-term (January 2026): Dividend distribution planning
4. Ongoing: SAF-T and enhanced reporting systems

Strategic Recommendation: Engage experienced Romanian tax counsel for comprehensive compliance planning and optimization strategies tailored to your business structure.