Announced government ordinances signal easing fiscal pressure in 2026, PwC Romania says
A series of announced government ordinances signal that fiscal pressure could be reduced starting in 2026, through the reduction and elimination of certain taxes applied to companies, despite the looming budget deficit, according to an analysis carried out by PwC Romania.
“Halving the minimum turnover tax (or IMCA) starting in 2026 and its subsequent elimination, as well as the elimination of the specific turnover tax and the tax on special constructions, show the government’s intention to offer a horizon of predictability to the business environment. However, these measures are for now promises, and their modification during 2026 cannot be ruled out,” Ruxandra Târlescu, partener and leader Fiscal and Legal Services with PwC Romania, explains.
According to the cited source, the government “understands that increased taxation is burdensome, hampers investments and, implicitly, economic growth.” The lessening of this burden is also supported by recent statements from representatives of the International Monetary Fund, who have assessed that the measures already adopted are sufficient for fiscal consolidation, provided that the current direction is maintained.
Nevertheless, reducing the budget deficit remains difficult, and without tax increases, the government has two main levers at its disposal, namely rationalizing public spending and improving tax collection, PwC further shows.
The latter is not promising. Over the past decade, Romania’s fiscal revenues have stood at 25–27% of GDP, and in order to exceed the threshold of 30% of GDP, it is necessary to strengthen the tax administration and ensure more efficient tax collection. However, at the end of November 2025, fiscal revenues reached 25.6% of GDP, 0.6% higher than the previous year due to increased taxation.
“Additional measures must be taken for much stricter control of public spending and more efficient collection of existing taxes,” the analysis further shows. Reports by the European Commission indicate that Romania ranks first in the European Union in terms of VAT and corporate income tax collection gaps. Although ANAF has initiated the digitalization process, the results are not yet at the expected level, and the option of increasing taxes remains possible in the absence of significant progress.
With regard to corporate taxation, the PwC analysts show that IMCA, ICAS, and the tax on special constructions will be eliminated starting in 2027, while in 2026, IMCA will be reduced from 1% to 0.5%. For micro-enterprises, there will be a single tax rate of 1%, with the eligibility threshold set to decrease to EUR 100,000.
On the other hand, starting in 2026, the 16% tax will apply to income from dividends distributed to individuals, gains from the transfer of securities, derivative financial instruments, and income from the transfer of virtual currency, which will generate an additional tax burden for investors.
In the area of local taxes, the taxable value per square meter for residential buildings and land will increase by approximately 170%, with a significant impact, especially for companies with extensive land portfolios. In addition, the rate of the special tax for high-value assets will increase from 0.3% to 0.9%.
PwC concludes that the increase in taxation in 2025 was predictable in the context of the high budget deficit and the commitments assumed through the PNRR, and that to avoid further tax increases, it is essential to accelerate the reform of the tax administration and strengthen budgetary discipline.
(Photo source: lovelyday12 | Dreamstime.com)
