Pillar 2 rules were introduced in Romania by Law No. 431/2023 and generally apply to multinational groups and large domestic groups for financial periods beginning on or after 31 December 2023. Their purpose is to ensure a minimum effective tax rate of 15%, and in Romania the shortfall can be ...

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Management, IT, accounting and human resources services invoiced between companies within the same group require clear justification. The existence of a contract and an invoice does not, on its own, demonstrate which services were provided, the benefit to the recipient company or whether the ...

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CAEN codes — Romania’s Classification of National Economic Activities — identify a company’s principal and secondary business activities. Applicable since 1 January 2025, CAEN Rev. 3 is gradually replacing Rev. 2, which had been used since 2008. This update aligns the ...

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Romania’s High Court confirmed that the right to carry forward a negative VAT balance to subsequent VAT periods is not time-barred, strengthening fiscal predictability for businesses and investors. Decision no. 6/2026 of the High Court of Cassation and Justice provides an important ...

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The EU Artificial Intelligence Act (AI Act) – the first harmonized legal framework for artificial intelligence globally – will enter into full applicability on 2 August 2026. In 2024, global investments in AI grew by 62%, reaching $110 billion. Romania has positioned itself as a ...

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Romania joined the European Union in 2007, has revised some of its standards and offers a comprehensive tax system compliant with the various EU directives in force. The corporate tax rate in force in 2016 is 16% (since January 1, 2005). For the time being, there is no additional tax such as ...

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