The August 2025 newsletter covers the main legislative and procedural updates in the areas of taxation, accounting, and social health insurance, with impact on the taxation of business groups, value-added tax regimes, tax declarations and medical leave benefits.
I. Order no. 1929/2025 of the National Agency for Fiscal Administration amending Order of the President of the National Agency for Fiscal Administration no. 7,015/2024 approving the form, content, method of submission and management of Form (212) “Single Tax Return on Income Tax and Social Contributions Due by Individuals”
Published in the Official Gazette No. 713 / 31.07.2025
The Order amends the template and the completion instructions of Form 212 – Single Tax Return on Income Tax and Social Contributions Due by Individuals.
The instructions are mainly amended with regard to:
- Health insurance contribution (CASS) for the year 2025.
- The option for individuals to pay CASS, including on behalf of dependents (spouse, parents).
Form 212 is to be completed by individuals who:
- Start independent activities in 2025,
- Had fiscal loss or zero net income in the previous year,
- Earn income from intellectual property, rents, agriculture, investments, etc.,
- Have no income and are not exempted from paying CASS,
- Wish to pay CASS for dependents.
Scope of application:
- The form is used for reporting income from 2024 and for CASS payment options for 2025.
- Forms submitted previously remain valid but may be rectified.
II. Government Decision No. 602/2025 amending and supplementing Title VII “Value Added Tax” of the Methodological Norms for the application of Law No. 227/2015 on the Fiscal Code, approved by Government Decision No. 1/2016
Published in the Official Gazette No. 715 / 31.07.2025
This decision provides clarifications regarding the Value Added Tax (VAT) rate applicable to certain categories of products.
The most significant legislative changes include:
- The reduced 11% VAT rate is allowed throughout the entire economic chain—from producer to retailer—regardless of the final destination of the product. However, for certain goods, the supplier is required to prove that the food is used for human or animal consumption.
- Clear definitions are provided for food intended for human and animal consumption, which will fall under the 11% VAT rate, with reference to provisions in European legislation (Regulation (EC) No. 178/2002).
- Points 36–38 of the methodological norms for the application of Title VII – “Value Added Tax” of the Fiscal Code have been updated to align with the new legal provisions concerning the revised VAT rates.
The decision enters into force on August 1, 2025.
III. Order no. 522/1,026/2025 of the Ministry of Health and the National Health Insurance House amending the Norms for the Application of the provisions of Government Emergency Ordinance no. 158/2005 on Sick Leave and Health Insurance Benefits, approved by Order of the Minister of Health and the President of the National Health Insurance House no. 15/2018/1,311/2017
Published in the Official Gazette No. 717 / 01.08.2025
This Order amends the Norms for the Application of GEO no. 158/2005 on sick leave and health insurance benefits.
It introduces Article 30¹, which clarifies the calculation method for the allowance for temporary incapacity for work, as follows:
- The gross monthly allowance is calculated for each episode of illness, based on the total number of days of sick leave (initial certificate + continuation certificates).
- The applicable percentage depends on the total number of days:
Example:
Month 1: 3 days,
Month 2: 14 days. - Recalculation of the allowance: if the initial certificate is issued at the end of a month and the continuation in the following month increases the total number of days of the illness episode, then the allowance must be recalculated also for the first month, applying the percentage corresponding to the entire episode (in the example above, total 17 days → 75%).
Reminder – the gross monthly allowance is established according to the total duration of the illness episode:
- up to 7 days → 55% of the calculation base,
- between 8 and 14 days → 65% of the calculation base,
- over 15 days → 75% of the calculation base.
IV. Order no. 523/1,027/2025 of the Ministry of Health and the National Health Insurance House amending Annex no. 1 to Order of the Minister of Health and the President of the National Health Insurance House no. 1,192/745/2020 approving the single template of the medical leave certificate and the instructions on the use and method of completing medical leave certificates based on which allowances are granted to insured persons in the health insurance system and in the work accidents and occupational diseases insurance system
Published in the Official Gazette No. 717 / 01.08.2025
Main amendments:
- “Payment percentage” field:
A clear list of applicable percentages is introduced: 55%, 65%, 75%, 80%, 85%, 100%, as well as the option “Prevention.”
- Allowance code “01 Ordinary illness”:
The percentage is changed from “75%” to “55%/65%/75%,” depending on the total number of sick leave days.
- Use of old forms:
They may be used until existing stocks are exhausted.
For code “01,” on old forms the percentage is not ticked in the dedicated field; instead, it is filled in on the back, in the “Observations” section, with the wording “01 Ordinary illness” together with the corresponding percentage (55%, 65% or 75%).
V. Order No. 1826/2372/2025 for amending and supplementing the Annex to Joint Order of the President of the National Agency for Fiscal Administration (ANAF) and the President of the Romanian Customs Authority No. 417/1204/2025 concerning the approval of the criteria for assessing fiscal risk for identifying high-risk economic operators, pursuant to Article 375 (11) and Article 435 (31) of Law No. 227/2015 on the Fiscal Code
Published in the Official Gazette No. 708 of July 25, 2025
Main amendments:
- “Payment percentage” field:
A clear list of applicable percentages is introduced: 55%, 65%, 75%, 80%, 85%, 100%, as well as the option “Prevention.”
- Allowance code “01 Ordinary illness”:
The percentage is changed from “75%” to “55%/65%/75%,” depending on the total number of sick leave days.
- Use of old forms:
They may be used until existing stocks are exhausted.
For code “01,” on old forms the percentage is not ticked in the dedicated field; instead, it is filled in on the back, in the “Observations” section, with the wording “01 Ordinary illness” together with the corresponding percentage (55%, 65% or 75%).
VI. Order No. 1194/2025 of the Ministry of Finance approving the Accounting Reporting System as of June 30, 2025 for economic operators
Published in the Official Gazette No. 730 / 05.08.2025
This order establishes the accounting reporting system as of June 30, 2025 for economic operators, providing clarifications regarding the preparation of the related annual financial statements.
Scope of application:
Entities with a net turnover exceeding EUR 1,000,000 (equivalent to RON 4,974,100) in the previous financial year (2024) are required to prepare and submit accounting reports as of June 30, including:
- Economic operators applying:
1. Accounting regulations for individual and consolidated annual financial statements (Order of the Minister of Public Finance No. 1802/2014),
2. Accounting regulations compliant with IFRS (Order of the Minister of Public Finance No. 2844/2016),
- Romanian branches of legal entities headquartered abroad,
- Permanent establishments in Romania of legal entities headquartered abroad,
- Entities with a financial year different from the calendar year.
Exceptions:
Entities are not required to prepare the report if they:
- Were established in 2025,
- Had no activity in the first half of 2025,
- Are temporarily inactive,
- Are undergoing liquidation.
Deadline: August 18, 2025
Penalties: Fines ranging from RON 300 to RON 4,500 for late submission or failure to comply, depending on the length of the delay.
VII. Order no. 2066/2025 of the National Agency for Fiscal Administration approving the form, content, method of submission and management of Form 112 “Statement regarding the payment obligations of social contributions, income tax and nominal records of insured persons”
Published in the Official Gazette No. 800 / 28.08.2025
Key amendments and additions:
- Definition of tradable transferable tax credit
A tradable transferable tax credit means a tax credit that can be used by the holder to reduce their liability for a covered tax under the legislation of the jurisdiction that regulated the tax credit, and which cumulatively meets the legal standards for transferability and tradability. - Clarifications regarding pension entities
A pension service entity means an entity that is established and operates exclusively or almost exclusively to:
(i) invest funds for the benefit of entities referred to in point 18(a);
(ii) or carry out activities that are auxiliary to the regulated activities referred to in point 18(a), provided that the pension service entity is part of the same group as the entities conducting those regulated activities. - Definition of excess national profits
Paragraphs (3) and (5) of Article 17 are amended to clarify the method of calculating excess national profits. - Optional regime for excluding profit with economic substance
Article 32 paragraphs (2) and (3) are amended to allow reporting entities the option to exclude profit justified by activities with economic substance. - Clarifications in cases of acquisitions or mergers of non-group entities
Article 37 paragraph (3) is updated to consider the consolidated threshold of EUR 750 million in cases where no prior consolidated financial statements exist. - Effective tax rate and top-up tax for investment entities
Clarifications are provided on the calculation method and applicable conditions for top-up taxes for investment entities located in Romania. - Role of the designated local entity
The designated local entity in Romania is defined, which may submit declarations and notifications on behalf of the entire group.
Effective date: September 1, 2025
VIII. Government Ordinance No. 22/2025 amending and supplementing Law No. 227/2015 on the Fiscal Code
Published in the Official Gazette No. 806 / 29.08.2025
This ordinance introduces amendments to Law No. 227/2015 on the Fiscal Code concerning the transposition of European Directives and the value-added tax (VAT) regime applicable to small enterprises and electronic services.
Key amendments to the Fiscal Code:
- Increase of the VAT exemption threshold for small enterprises:
Starting September 1, 2025, the annual turnover threshold up to which such companies may apply the special VAT exemption regime increases from 300,000 RON to 395,000 RON.
The obligation to register for VAT purposes arises at the moment the threshold is exceeded, starting with the transaction that caused the excess. - Transitional rules introduced:
If the 300,000 RON threshold is exceeded in August but the 395,000 RON threshold is not, VAT registration is not mandatory. - Changes to the special VAT exemption regime for small enterprises:
The regime is amended to allow small enterprises to benefit from VAT exemption in other EU Member States as well. - Suspension of the RO e-VAT compliance notification obligation:
Taxable persons registered for VAT purposes are no longer required to respond to RO e-VAT compliance notifications within 20 days. This obligation is suspended until December 31, 2025, and failure to comply will not result in penalties during this period. - New rules on the place of supply for electronically supplied services:
European provisions are transposed into national legislation to determine the place of supply for electronic services and virtual attendance events.
Effective date: September 1, 2025
