Romanian Banking Turnover Tax Doubles: Credit Institution Compliance Guide

Romanian banks face turnover tax increases to 4% starting July 2025. Understand exemptions and compliance requirements for credit institutions.

Romanian credit institutions experienced significant supplementary turnover tax increases as part of the country’s comprehensive tax reform. The changes create substantial financial impact for banking sector operations.

New Tax Rates Structure

Current Implementation (July 1, 2025 - December 31, 2025):

  • Standard rate: 4% (increased from 2%)
  • Small institution rate: 2% (unchanged for qualifying entities)

2026 Rates (January 1, 2026 - December 31, 2026):

  • Standard rate: 4% (increased from 1%)
  • Small institution rate: 2% (for qualifying entities)

Exemption Criteria

Credit institutions with market share below 0.2% of total net assets in Romanian banking sector maintain the 2% rate throughout the entire period.

Compliance Requirements

  • Calculate market share percentage for exemption eligibility
  • Adjust financial projections for increased tax burden
  • Review pricing strategies to maintain profitability margins

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