The global minimum tax has been introduced into national legislation


The Law applies to entities headquartered in Romania, that are members of a multinational or national group with an annual revenue of at least 750,000,000 EUR recorded in the consolidated financial statements of the ultimate parent company, in at least 2 of the 4 financial years immediately preceding the reference financial year. There are also certain expressly provided exclusions.

This ensures a minimum form of taxation through one of the following taxes:

  • Additional tax under the income inclusion rule (IIR): The parent is required to calculate and pay its allocable share of the additional tax for group entities taxed at a reduced rate.
  • Additional tax under the undertaxed profits rule (UTPR): The entity from the group owes a tax recognised as an additional expense, equal to its share of the additional tax not levied under the IIR at the level of the parent, for group entities taxed at a reduced rate.
  • National additional tax: Romania has opted for local entities taxed at a reduced level to owe the additional tax at national level.

The minimum tax rate, set at 15%, is analyzed in relation to the effective tax rate, calculated according to the provisions of this Law, and not those of the Tax Code.

Please note that the Law applies from financial years beginning from 31 December 2023, with certain exceptions. In this regard, for 2024, the deadline for submitting the declaration or notification (if the declaration is not submitted by the local entity), and for paying the additional tax is 18 months from the last day of the reporting financial year, respectively on 30 June 2026. Thereafter, for subsequent financial years, the deadline shall be 15 months from the last day of the reporting financial year.

The global minimum tax is one of the OECD's initiatives in combating base erosion and profit shifting (BEPS), and thus, Law no. 431/2023 is a transposition of Council Directive (EU) 2022/2.523 of 14 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union.

Law nr. 431/2023 was published in the Official Gazette, Part I no. 8 of 05 January 2024 and entered into force from 8 January 2024.



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