Romania: legislative developments with immediate business relevance

Last week, Romania’s Ministry of Finance updated the economic relaunch project proposed by PSD, converting it from a draft bill into an emergency ordinance. Key substantive changes clarify how depreciation applies for taxpayers returning to the calendar fiscal year in 2026, and how employer contributions to occupational pensions or PEPP are treated as income for the months when payment is made. The ordinance continues to focus on boosting investment, innovation, and growth, offering grants, state guarantees, subsidized loans, and financing to companies investing in strategic sectors such as advanced technologies, digitalization, and green transition. Expanded tax incentives, including accelerated depreciation and benefits for reinvested profits, are designed to reduce fiscal pressure, while microenterprises benefit from higher VAT thresholds and greater operational flexibility.

The Government abandoned plans to fast-track the bill through an assumption of responsibility after changing its legal form, a procedure allowed only for draft laws under the Constitution. It will now be adopted as an emergency ordinance, effective upon publication in the Official Gazette, with Parliament retaining the right to approve, amend or reject it. The project remains a priority for the Executive.

Businesses stand to gain improved access to financing and clearer rules on tax treatments, which reduces uncertainty and fiscal risk. Companies can optimize investment projects, plan depreciation more effectively, and account accurately for pension-related contributions. Microenterprises gain stability through higher VAT thresholds and more predictable cash flow.

Companies should review updated depreciation rules and employer pension contribution treatments, adjust internal accounting and payroll processes accordingly, and identify opportunities to access grants, loans, and tax incentives under the ordinance. Importantly, because the act has been transformed into an emergency ordinance, provisions may take effect sooner than expected, so businesses should prepare to implement the measures immediately once published to fully leverage available support.

The Ministry of Finance has published a new order in the Official Gazette establishing the consumer price index (CPI) for 2026 at 106.5%, to be used for updating advance payments of annual corporate income tax.

Companies will calculate profit tax prepayments for 2026 using this adjusted CPI, slightly increasing the amounts due compared with 2025. This affects cash flow planning and short-term liquidity management.

Finance teams should update their 2026 tax prepayment calculations using the 106.5% CPI and adjust cash flow projections accordingly to ensure timely and accurate payments.

At the same time, the Prime Minister’s Cabinet updated and republished a draft emergency ordinance which streamlines foreign investment reviews and fire safety compliance. Investment reviews now cover strategic assets, with shorter timelines (45 days for analysis, 10 days for final decisions), a higher threshold (€5M), lower fees (€5,000), and investor reimbursement if deadlines are missed. Fire safety rules require businesses to maintain compliant systems, report digitally, follow temporary suspension procedures instead of automatic revocation, and meet strict authorization deadlines.

The bill was previously adopted by the Senate through tacit approval, without debate, after the legal deadline expired.
The Chamber of Deputies now has the final vote. The measure has strong chances of passing, as it is expected to increase state budget revenues and support higher pension payments.

Companies will face faster and more predictable foreign investment reviews, with lower fees and clearer obligations, improving planning and reducing administrative risk. Stricter but well-defined fire safety rules mean businesses must invest in compliant infrastructure, training, and reporting systems. Digital submission and tracking improve efficiency, but companies must adapt quickly to new workflows.

Businesses should review current investment projects to determine if they fall under the new thresholds and prepare for faster review processes. Companies must ensure fire safety systems, documentation, and procedures are fully compliant, including assigning responsibilities to qualified personnel, monitoring installations, and training staff.

Romanian MPs from the governing coalition (PSD-PNL-USR-UDMR) have proposed a legislative initiative to link the national gross minimum wage to the “minimum consumption basket” that ensures a decent standard of living. The bill updates the legal framework so that the National Institute of Statistics (INS) can accurately calculate this basket, filling gaps in the 2020 revision of the Annex to GEO 217/2000. As the initiators believe, this would create a transparent, predictable, and economically justified approach to setting the minimum wage.

The governing coalition holds a comfortable parliamentary majority, which gives the proposal solid prospects of clearing both chambers.
If adopted, the measure would consolidate the Executive’s position as it pursues policies aimed at supporting Romania’s economic recovery.

For businesses, the law introduces a more predictable mechanism for minimum wage adjustments, reducing uncertainty in labour cost planning. Companies may need to anticipate higher wage floors if the basket value increases, impacting payroll budgets, pricing strategies, and employment costs.

If the law is adopted, employers should review current payroll structures, budget for potential increases in minimum wages, and monitor INS updates on the consumption basket. HR and finance teams should update wage policies and ensure compliance once the law and related calculation norms are officially published.