The Government's plan for 2026: Fewer profit taxes, but a tougher collection of budget revenues

The 'train' ordinance sends a positive signal to companies, indicating a possible reduction in the tax burden until 2026. Among the proposed measures is the halving of the minimum tax on turnover (IMCA) from 2026 and its elimination, as well as the specific tax on turnover (ICAS) and the tax on special constructions. These measures, although promises, reflect the government's understanding that increased taxation hinders investments and economic growth.

To reduce the budget deficit, the government relies on rationalizing expenditures and improving tax collection, considering that tax revenues have been constant around 25-27% of GDP over the last decade. Reports from the European Commission indicate significant losses in VAT and profit tax collection, placing Romania first in this regard.

In 2026, IMCA will decrease from 1% to 0.5%, and the tax on micro-enterprise income will have a single rate of 1%. Additionally, the tax on dividends will increase to 16%, which will affect investors. Local taxes will increase significantly, impacting companies with extensive land portfolios.

In conclusion, the tax increases in 2025 were necessary to address the budget deficit, but tax administration reform must continue to ensure efficient revenue collection. Controlling public spending is essential to avoid new tax increases.