The Official Gazette no. 1334 of December 31, 2024, GEO no. 156/2024 was published, regarding various fiscal-budgetary measures in the field of public expenditures to substantiate the general consolidated budget for 2025, to amend and supplement some normative acts, as well as to extend some deadlines.
The ordinance provides for the following tax changes which may have great impact on all types of private companies:
1. The dividend tax increases from 8% to 10% for dividends distributed starting January 1, 2025. Thus, whoever wishes to benefit from the 8% tax rate must distribute the retained earnings (from the annual financial statements) or the current earnings (from the interim financial statements up to the third quarter of 2024) by December 31, 2024. If dividends are paid to individual resident in Romania in 2024, then they will owe health insurance if the cumulative income exceeds 6 minimum salaries by applying the 10% rate to 6, 12 or 24 minimum salaries (the applicable minimum salary for 2024 is 3,300 lei). From January 1, 2025, the health insurance related to dividends received is related to the minimum wage of 4,050 lei (the minimum wage applicable on January 1 of the respective year).
Attention! If dividends are distributed by December 31, 2024, but are not paid, then the tax will be due through declaration 100 for December with the declaration and payment deadline of January 25, 2025.
2. In case of dividends distributed based on interim financial statements prepared during 2024, the tax rate on dividends is 8%, without recalculating the tax on the respective dividends, after their regularization based on the annual financial statements for the 2024 financial year, approved according to the law.
3. From January 1, 2025, the income threshold for micro-enterprises will decrease from 500,000 euros to 250,000 euros, and respectively to 100,000 euros starting with January 1, 2026. Therefore, if a micro-enterprise registered on December 31, 2024 has a taxable base between 250,000 euros and 500,000 euros, then it must mandatorily apply the profit tax from January 1, 2025. The verification of the inclusion in the 250,000 euro threshold is carried out based on the income generated by the Romanian legal entity on December 31, 2024. The income generated by related enterprises (entities in which
the associate/shareholder directly/indirectly holds more than 25% of the shares) must also be taken into account when establishing the taxable base.
4. The condition regarding consulting and/or management income to be a maximum of 20% of total income (taxable base) has been eliminated. Therefore, from January 1, 2025, companies providing consulting/management services will be able to opt to apply the micro-tax if they cumulatively meet the other conditions set out in art. 47 paragraph (1) of the Fiscal Code (total income below 250,000 euros, the share capital is not owned by the state, is not in dissolution, has at least one employee, the associate/shareholder with over 25% owns a single micro-enterprise and has submitted the annual financial statements on time).
5. From January 1, 2025, the 3% rate will be applied to the income tax of micro-enterprises and for the main or secondary activities corresponding to the CAEN codes: 6210 - Custom software development activities (customer-oriented software), 6290 - Other information technology service activities, 5611 - Restaurants, 5612 - Mobile food service activities, 5622 - Other food service activities n. c. a..”.
6. Individuals who earn income from salaries and similar renumeration resulting from activities concerning the development of computer programs, activities in the construction sector, or activities in the agricultural sector and the food industry, will no longer benefit from the income tax exemption and reduce the pension contribution by 4.75% (i.e. 20.25% was due instead of 25%) for gross monthly incomes of up to 10,000 lei inclusive. It should be noted that the employee could submit to the employer, in writing, the option to pay the pension contribution due to the privately managed pension fund (4.75%), so the employer has to withhold the pension contribution in full at 25%.
7. From January 1, 2025, the construction tax is introduced, which is calculated by applying a rate of 1% to the value of the existing constructions in the taxpayers' patrimony on December 31 of the previous year, from which the value of the buildings for which the building tax is due is deducted. These provisions also apply to the value of buildings in industrial, scientific and technological parks that, according to the law, do not benefit from the exemption of paying the building tax. In the case of constructions of the public/private domain of the state or of administrative-territorial units, the tax is owed by the taxpayers who have them under administration/concession/use for free/rent.
The expense of the calculated tax is a deductible expense when determining the fiscal result. The construction tax is paid by June 30 and October 31.
8. Starting with January 1, 2025, in the case of employees who carry out activities under an individual employment contract, employed full-time, at the place where the basic position is located, no income tax (10%) is due and the amount of 300 lei/month is not included in the monthly calculation basis for mandatory social contributions (health, pension and employment work insurance contribution), representing income from salaries and similar salaries, if the following conditions are cumulatively met:
- the monthly gross basic salary established according to the individual employment contract, without including bonuses and other additions, is equal
to the level of the minimum gross salary per country guaranteed in payment established by Government decision – 4,050 lei; - the gross income derived from salaries and similar salaries, without including
the value of meal vouchers, holiday vouchers, respectively food allowance, as the case may be, granted according to the law, based on the same individual employment contract, for the same month, does not exceed the level of 4,300 lei inclusive.
Attention! The condition is not considered to be met if, in the period between the date
of entry into force of this GEO and December 31, 2025, the level of the monthly gross basic salary established according to the individual employment contract is reduced, without including bonuses and other additions. The non-taxable amount of 300 lei applies to income related to the months of January - December 2025 inclusive.
9. Individuals who earn income from salaries and similar to salaries under an individual employment contract below the minimum wage of 4,050 lei and do not fall under
the exceptions (pupils or students up to 26 years of age, apprentices up to 18 years of age, persons with disabilities, pensioners for age limit in the public pension system, income from salaries or similar to salaries under two or more individual employment contracts above the minimum wage), then for the income related to the year 2025, they will owe pension and health contribution at the level of the minimum gross basic salary per country reduced by the amount of 300 lei per month, i.e. at the value of 3,750 lei.
10. The minimum wage in agriculture and the food industry will be increased from January 1, 2025 to 4,050 lei, and the minimum wage in construction will remain at the level of 4,582 lei from January 1. From these provisions it follows that those in the construction field will no longer benefit from tax facilities (income tax exemption and pension contribution reduction by 4.75 pp for the amount of 10,000 lei), but also from the non-taxable amount of 300 lei (gross salary of 4,050 lei and gross income of maximum 4,300 lei).
