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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure RO-2021-1/1400 – measures in Romania

Tax reductions for businesses

Facilitati fiscale pentru afaceri

Country Romania , applies nationwide
Time period Temporary, 01 January 2021 – 31 December 2025
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Victoria Stoiciu (European Institute of Romania)
Measure added 04 November 2020 (updated 06 November 2020)

Background information

Measures to combat the COVID-19 pandemic have generated financial difficulties for most economic operators, who face a severe lack of liquidity. The measures adopted by this ordinance will contribute to the stimulation and development of the Romanian capital, of the competitiveness of the economic operators, to the provision of additional financial resources at the disposal of the taxpayers paying profit tax, income tax for micro-enterprises or activity specific tax.

Content of measure

Companies that manage to increase their capital will be able to benefit, in the period 2021 to 2025, from business tax reductions (reductions in annual income tax / micro-enterprises income tax /activity-specific tax). Thus, the state wants to stimulate the recapitalization of companies that currently have negative equity. The provision applies for a period of five years, from 2021 to 2025. Other provisions of the normative act are: clarification of some aspects regarding the granting of bonuses for the payment of profit tax, suspension of monthly and occasional draws of the Tax Voucher Lottery and introduction of a new article in the Fiscal Procedure Code on digitization of information transmission procedures.

Use of measure

Not available.

Target groups

Workers Businesses Citizens
Does not apply to workers Other businesses
Does not apply to citizens

Actors and funding

Actors Funding
National government
Employers' organisations
Company / Companies
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement Consulted
Form Not applicable Consultation through tripartite or bipartite social dialogue bodies

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown


No available information.

Views and reactions

No available information.


  • 03 September 2020: GEO no. 153 of September 3, 2020 for the establishment of fiscal measures to stimulate the maintenance / increase of the own capitals (


Eurofound (2020), Tax reductions for businesses, measure RO-2021-1/1400 (measures in Romania), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.