Romania to cut taxes in 2026-27, simplify administration

Romania is set to reduce its tax burden and simplify fiscal administration, the country’s Finance Minister, Alexandru Nazare, announced on December 27. 

The government has adopted a decree introducing a series of measures aimed at easing business and personal taxation, Point reports.

A key measure will be the reduction of the turnover tax: it will fall from 1% to 0.5% in 2026, with a full abolition planned from 2027. Micro-enterprises with an annual turnover of up to €100,000 will benefit from a single rate of 1%, down from the current 3%.

The decree also includes cuts in subsidies for political parties and payments to minority groups by 10%, and the planned removal of the so-called “pillar tax” on construction from 2027.

Administrative procedures will be simplified, including the RO E-TVA system, VAT registration and filing of pre-filled declarations. Licensing for excise goods will be centralised under the National Agency for Fiscal Administration (ANAF), with new risk assessments introduced for different product categories.

Additional measures include financial guarantees for importers and distributors of energy products to cover potential unpaid VAT and excise duties.

For low-income workers, part of the minimum wage will remain tax-exempt: 300 lei (around $17) until June 30, 2026, and 200 lei ($12) from July until the end of the year.

By Aghakazim Guliyev