We provide you with a summary of the main legislative changes affecting the tax sphere, published  in August 2025 and effective as of September 1, 2025. 

Ordinance No. 22/2025 amending and supplementing Law No. 227/2015 regarding the Fiscal  Code 

(M. Of. No. 806 of 29.08.2025) 

The Ordinance transposes Directive (EU) 2020/285 into domestic law, introducing new rules regarding  the special VAT regime for small businesses. The main amendments concern: 

• The increase of the annual turnover threshold for the application of the special VAT exemption  regime for small enterprises from RON 300,000 to RON 395,000. Taxable persons applying  the special VAT exemption regime whose turnover exceeds the exemption threshold must  apply for VAT registration, in accordance with art. 316, no later than the date on which the  threshold is exceeded.  
• The introduction of new provisions governing the by default/voluntary VAT registration in the  event of exceeding the exemption threshold. At the same time, transitional provisions are  introduced for entities registered for VAT purposes as a result of them exceeding the  exemption threshold of RON 300,000 previously applicable, e.g. before the entry into force of  the new rules. 
• The implementation of the legislative framework allowing taxable persons established in  Romania to request the application of the special VAT exemption regime for small enterprises  in other EU Member States, together with regulations permitting taxable persons established  in other Member States to request the application of the special exemption regime in  Romania. 
• The transposition of the provisions found in Directive (EU) 2022/542, amending the rules that  govern the place of supply for those activities/events that involve virtual presence/that are  broadcasted on the internet or that are made available by any other virtual means. 
• e-VAT: The obligation of taxable persons registered for VAT purposes to submit, by electronic  means and within 20 days of receiving the notification, the results of the checks performed  on the differences communicated through the “RO e-VAT compliance notification,” in response  to this notification, as well as the application of any related penalties (i.e., administrative  offence and/or treatment of the failure to do so as an indicator of potential tax risk) will be  suspended until December 31, 2025.

Ordinance No. 21/2025 amending and supplementing Law No. 431/2023 on ensuring a minimum  global level of taxation for multinational enterprise groups and large domestic groups (M. Of. No. 85 of 29.08.2025) 

The Ordinance ensures the alignment of Romanian legislation with international rules for the global  minimum taxation of large enterprise groups, following observations received during the provisional  self-assessment process of national regulations implementing the Model Rules (transitional  qualification mechanism based on self-certification), established by the OECD as a transitional  process. Below, we are listing the following major changes: 

• The term “transferable tax credit” is introduced, which can be used by the credit holder to  reduce their tax liability covered in accordance with the legislation of the jurisdiction that  governed this tax credit, including the transferability and tradability attributes of this credit. 
• The phrase “qualified domestic top-up tax” is replaced by the phrase “domestic excess profit”  if the constituent entities located in Romania do not apply the same accounting regulations  or if the fiscal year used by the constituent entities in Romania differs from the fiscal year  used as a reference in the consolidated financial statements of the multinational group. 
• The formula used to compute the qualified domestic top-up tax is supplemented by the  inclusion of an additional domestic top-up tax, which is the tax determined in accordance  with the tax rules applicable to the domestic top-up tax for the respective financial year. 
• The tax rules applicable to operations performed to decrease the equity of a constituent entity  are supplemented in the case of insurance investment entities. 
• New rules are introduced for the optional carryforward of negative expenses related to top up taxes, as well as for cases where a multinational group or a large national group transfers (fully)/reacquires/establishes one or multiple constituent entities in a certain jurisdiction. 
• The regulations for excluding the profits arising from those activities with economic  substance are reformulated, in the sense that this exclusion will be performed only if it is not  exercised independently.  
• The method of computing the effective tax rate and the top-up tax percentage in cases where  several investment entities are located in Romania is reformulated. 

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For additional details regarding the above, you can contact any member of the Taxhouse team or you can send us an e-mail at office@taxhouse.ro.