In July 2025, Law No. 141/2025 on various fiscal and budgetary measures was officially published in the Official Gazette (No. 699). This new legislation introduces a range of significant tax amendments aimed at reshaping the fiscal landscape. In this article we discuss changes in Income tax.
Income Tax
Starting with 2026, the dividend tax will be increased from 10% to 16%. This amendment will apply exclusively to dividends distributed starting with 2026. In the case of dividends distributed based on interim financial statements prepared during 2025/amended fiscal year starting in 2025, the dividend tax rate is 10%, without recalculation of the tax on the respective dividends, after their regularization based on the annual financial statements for the 2025/amended fiscal year starting in 2025, approved according to the law. Therefore, if dividends are distributed during 2025 based on interim statements (quarter I, III or III), then the 10% rate will apply and this will also apply to the annual adjustment based on the annual financial statements.
From August 1, 2025, the tax regime for income obtained from the sale of waste is modified. Only income from the sale of waste originating from personal assets, other than ferrous and non-ferrous metals (and their alloys), will remain non-taxable. This can be income of any kind, either in cash or in kind. Income obtained from the sale of waste from ferrous and non-ferrous metals, as well as their alloys, even if they originate from personal assets, will now be considered income from other sources. This will be taxed according to Article 114 of the Tax Code. Income tax is calculated by withholding at source at the time of granting income by income payers, by applying a rate of 10% on gross income.
Interest obtained from bonds issued by companies resident in Romania on capital markets outside Romania will be taxed at a rate of 10%. This rate applies to the amount of interest paid by the issuing company and recorded in the taxpayer's account during the fiscal year. Tax on income in the form of interest is calculated by taxpayers based on the single declaration and is applied to income paid by the issuing company and recorded in the taxpayer's account starting from August 1, 2025, regardless of the date of issuance of the corporate bonds.
From August 1, 2025, to establish the calculation base for the pension income tax, the following procedure will be followed:
- The non-taxable part of 3,000 lei is deducted from the total monthly pension income.
- Then, the CASS calculated for the part exceeding the non-taxable amount (3,000 lei) will also be deducted.
The remaining difference will represent the calculation base for the pension income tax.
The tax on gambling income, which is withheld at source, has been modified. The most important change is for amounts up to 10,000 lei, where the tax increases from 3% to 4% and applies from August 1, 2025. The upper thresholds and tax rates will be as follows:
- For income between 10,000 lei and 66,750 lei, the tax is equal to 400 lei plus 20% of the amount exceeding 10,000 lei.
- For income over 66,750 lei, the tax is equal to 11,750 lei plus 40% of the amount exceeding 66,750 lei.
The tax due in the case of income obtained as a result of participating in gambling games characteristic of casinos, poker clubs, slot machines and lottery tickets, with a value higher than the non-taxable threshold of 66,750 lei, is determined by applying the above scale to each gross income received by a participant, and the amount of 11,750 lei is deducted from the result obtained.
